Jubilant FoodWorks Limited

Chamber no. 1517, 15th floor, Devika Towers, 6 Nehru Place, New Delhi -110 019

New Delhi, February 05, 2010 Immediate release

Current Highlights
Q3 Total Income at Rs. 1173.6 million, up by 50.4%
Q3 Net Profit at Rs.113.7 million, up by 542%
9M Net Profit at Rs. 225.7 million, up by 547%
Successfully concluded IPO - priced at Rs. 145 per share
Strong operating upside visible

Guidance- FY2010
Total Income anticipated at Rs.4150-4200 million
EBITDA expected at ~ Rs. 650 million
PAT expected at ~Rs.320 million

Jubilant FoodWorks Limited (JFL), a leading food service company and Master
Franchisee of Domino’s International* reported its financial results for the quarter and
nine-months ended December 31, 2009.

Financial Highlights
• Total Income: Q3 FY2010 up 50.4% to Rs. 1173.6 million ; 9M FY2010 up 45.2% to Rs.
3001.1 million
o Same store growth largely driven by deeper penetration and increase in number
of orders
o Continued new store openings
• EBIDTA : Q3 FY2010 up 123.6% to Rs.197.2 million ; 9M FY2010 up 113.0% to Rs.
471.4 million
o EBITDA margin in Q3FY2010 stood at 16.8% as compared to 11.3% in Q3FY2009
o Growth in EBIDTA driven by robust sales recorded during the quarter coupled
with the sustainable cost efficiency measures adopted at every level of operation
• PAT: Q3 FY2010 up 542.0% to Rs. 113.7 million ; 9M FY2010 up 547.0% to Rs. 225.7
million
o PAT margin in Q3FY2010 stood at 9.7% as compared to 2.3% in Q3FY2009
• Successful IPO: The Company concluded its IPO successfully pricing it at Rs145 per
share making it the first food service company listed in India
o IPO oversubscribed over 31 times

Jubilant FoodWorks Limited, Q3 & 9M financial release 1

 o Listing on 8 February 2010
o Market cap of about Rs. 9225.2 million at issue price
o Witnessed demand from high quality investors – all investor categories of the
IPO were oversubscribed
o Strong endorsement from anchor investors including Arisaig Partners, Blackrock,
Canara Robeco MF, Capital World, Fidelity, Franklin Templeton, HSBC,
Prudential, Reliance MF, SBI MF, T Rowe Price and Ward Ferry
o Funds raised by Company to be utilized for repayment of debt and other
corporate initiatives

Operating Highlights
• New store openings : Q3 FY2010 16 new stores; 9M FY2010 opened 55 new stores
o Total Stores as on 31 December 2009 at 296 ; was 228 as on 31 December 2008
o Same store growth in Q3FY2010 23.1% ; was at 7.9% in Q3 FY2009
• System sales growth in Q3 FY2010 was 50.2%
• City/Town coverage: number of cities covered as on 31 December 2009 at 65. Was 43
as on 31 December 2008
• Two new products launched to a good response: Choco Lava cake and Pasta
offerings
• Re-introduced ‘Pizza Mania’, a low priced pizza offering leading to higher volumes

Guidance for FY2010

• Total income to range between Rs.4,150-4,200 million
• EBITDA expected at ~Rs. 650 million
• FY2010 PAT expected at ~Rs.320 million

* Domino’s International refers to Domino’s Pizza Overseas Franchising B.V., Netherlands

Commenting on the performance for Q3 FY2010, Mr. Ajay Kaul, CEO, Jubilant
FoodWorks Limited said, “Over the last several years we have invested considerable time,
effort and capital to build a very successful food-service model bringing change to the way the
Indian consumer perceives certain food segments. We are today an established, national,
profitable and growing business and we are delighted to have concluded a very successful IPO,
and we warmly welcome our new shareholders to be a part of the future progress at JFL. Our
model is now tried and tested and we are on a solid path of growth with critical size and
operating components in place. We remain focused on service and delivery and the thrust going
forward will be on a higher penetration, innovative customer engagement, increasing repeat
orders and improving store profitability. Our results for the quarter and year-to-date indicate
continued strong earnings and cash flows and better performance across key operating matrices.
The outlook going forward is even brighter and we expect our performance momentum to sustain
in the future.”

Jubilant FoodWorks Limited, Q3 & 9M financial release 2

Result details

Total Income

Q3 Q3 9M 9M
Particulars Shift (%) Shift (%)
FY2010 FY2009 FY2010 FY2009
Income from Sales 1,171.4 779.8 50.2 2,998.8 2,066.1 45.1

Other Income 2.2 0.49 356.7 2.4 1.2 95.7

Total Income 1173.6 780.3 50.4 3001.1 2067.3 45.2

In Q3 FY2010 the Total Income grew by 50.4% to Rs. 1173.6 million from Rs. 780.3
million. The improvement in performance was driven by the following factors:

• Higher new store openings: Q3 FY2010 saw 16 new store openings with the total
number of stores standing at 296 as of 31 December 2009.
• Increase in orders received by the stores on account of higher penetration levels and
increased orders.
• Improved same store sales: Q3 FY2010 saw same store growth of 23.1% from 7.9% in
Q3 FY2009.
• Innovative products launched such as Choco Lava cake and Pasta have added to the
growth in sales.

‘Same Stores’ refer to stores that have been in operation for both the years under review
entirely. Going forward, the growth of Same Stores sales will contribute even more
robustly to overall sales as the number of stores keep increasing.

In 9M FY2010 Total Income was at Rs. 3001.1 million from Rs. 2067.3 million.

Expenditure

Q3 Q3 9M 9M
Particulars (Rs. mn) Shift (%) Shift (%)
FY2010 FY2009 FY2010 FY2009
Raw Material and
289.8 197.3 46.9 737.5 525.0 40.5
Provisions Consumed
Personnel Expenses 215.7 150.4 43.4 559.6 399.1 40.2
Manufacturing and
470.9 344.4 36.7 1232.6 921.9 33.7
Other Expenses
Total Expenditure 976.4 692.1 41.1 2529.7 1846.1 37.0

Jubilant FoodWorks Limited, Q3 & 9M financial release 3

In Q3 FY2010, the Total Expenditure stood at Rs. 976.4 million from Rs. 692.1 million and
was led by new store openings and increased sales from same stores.
The largest increase to cost was on account of Raw Material and Provisions Consumed,
this increased 46.9% to Rs. 289.8 million from Rs. 197.3 million. This covers the cost of
cheese, chicken and other raw materials consumed while manufacturing food products.
Most of the ingredients used in pizzas are subject to price fluctuations based on demand
and seasonality’s. The Company has a very effective cost control mechanism activated at
the store level itself that helps it contain cost on this account. Traditionally the cost
increase of Raw Materials has been passed on to the customers.

Personnel Expenses were at Rs. 215.7 million in the quarter from Rs. 150.4 million and
the increase was on account of routine increment in salaries and allowances paid and an
increase in the number of employees itself.

In Q3 FY2010 the Manufacturing and Other Expenses were at Rs. 470.9 million from Rs.
344.4 million. These included expenses towards rent, cost of power & fuel, franchise fee
payable to Domino’s International, marketing expenses and general and administrative
costs.

In 9M FY2010 the Total Expenditure increased to Rs. 2529.7 million from Rs. 1846.1
million on account of growth in the operations. The primary reason for the increase was
the rise in Raw Material and Provisions Consumed stood higher at Rs. 737.5 million
from Rs. 525.0 million and the rise in Personnel Expenses which stood at Rs. 559.7
million from Rs. 399.1 million.

EBITDA

Q3 Q3 9M 9M
Particulars Shift (%) Shift (%)
FY2010 FY2009 FY2010 FY2009
EBITDA 197.2 88.2 123.6 471.4 221.3 113.0
Margins 16.8% 11.3% 550bps 15.7 10.7 500bps

In Q3 FY2010 the EBITDA increased to Rs. 197.2 million from Rs. 88.2 million. This
followed robust improvement in store sales and keen focus on cost management that
helped keep key operating costs under check. EBITDA margins in Q3 FY2010 were at
16.8% -growing 550 bps from 11.3% in Q3 FY2009. There is a sustained momentum in
earnings in line with enhanced size of operation.

Jubilant FoodWorks Limited, Q3 & 9M financial release 4

In 9M FY2010 the EBITDA was at Rs. 471.4 million from Rs. 221.3 million. The
corresponding EBITDA margins were at 15.7% from 10.7% last year. This implied a
growth of 500 bps.
The Company expects the EBITDA performance to sustain going forward with greater
contribution from same store sales, spread out absorption of overheads and continued
control of operating costs.

Interest Cost
In Q3 FY2010 Interest expenses stood at Rs.20.8 million as compared to Rs.24.7 million in
the same period last year. The decline witnessed was largely attributable to reduced cost
of borrowings coupled with overall reduced borrowings.

For 9M FY2010 the Interest cost was Rs.71.5 million as against Rs.59.9 million for 9M
FY2009.

Profit after Tax

Q3 Q3 9M 9M
Particulars Shift (%) Shift (%)
FY2010 FY2009 FY2010 FY2009
PBT 114.3 19.5 485.2 226.3 40.3 462.0
Margins 9.7% 2.5% 720 bps 7.5% 1.9% 560 bps
PAT 113.7 17.7 542.0 225.7 34.9 547.0
Margins 9.7% 2.3% 740 bps 7.5% 1.7% 580 bps

In Q3 FY2010 Profit After Tax was noticeably up at Rs. 113.7 million from Rs. 17.7
million given strong operating growth. The PAT margins were at 9.7% in the quarter
from 2.3% earlier.

In 9M FY2010 the Profit After Tax stood at Rs. 225.7 million from Rs. 34.9 million in 9M
FY2009. The corresponding PAT margins were at 7.5% and 1.7% respectively.

Jubilant FoodWorks’ Outlook

JFL is confident of delivering such strong growth-oriented performance on a sustainable

basis going forward. Over the last several years the Company has developed a unique
model for the Indian market that is now well established, profitable and growing. The
nascent business risks are behind the Company and the focus now is on achieving
sustainable and solid growth. The Company has very healthy cash flows from
operations which it is deploying to drive growth going forward. Expansion through

Jubilant FoodWorks Limited, Q3 & 9M financial release 5

internal accruals will lead to stronger value accretion to the shareholders of the
Company.

In the current year and moving to the next quarter the Company believes that it will
maintain its growth momentum thus reporting an outstanding performance in its year
of listing. For FY2010 the Company expects revenues to range between Rs.4,150-4,200
million resulting in an increase of 48% to 50% compared to the previous year ,
EBITDA is expected to be ~ Rs.650 million implying an upside of 87% and PAT at
~ Rs.320 million , translating to a growth of about 375%.

The outlook for the future is even brighter as JFL is consistently enhancing the scale and
size of operations. JFL plans to continue its network expansion by not only opening new
stores but also by penetrating further into existing cities. In FY2010, the Company plans
to open 65-70 new stores, out of which it has successfully opened 55 stores as of 31
December 2009. JFL continues to seek new opportunities for growth; placement of stores
in corporate campuses, food courts and shopping malls also provide potential for
expansion for JFL. With strong potential in Quick Service Restaurant (QSR) industry and
given JFL’s foothold in the pizza market, the Company has in place an ideal formula for
sustained growth going forward.

JFL’s optimism of its outlook is further aided by the market dynamics and the operating
environment. The food industry in India at present is in the growth phase and has
tremendous potential for development. The size of the Indian food industry was
estimated at US$ 200 billion in the year 2006-07 and is expected to be approximately US$
300 billion by 2015. The country has over the years witnessed a radical shift in terms of
the expenditure on food. Moreover, there is an increase in organized food formats such
as in Quick Service Restaurant (QSR), Fine dining, Bar & lounges. Thus going ahead,
changing demographics, rising urbanization, increase in income levels , increase in
number of working women and growth in nuclear families will lead to even higher
demand for food services related to eating out. The consumer today is on the outlook for
convenience, value for money, high speed of service and reduced wait lines and thus the
trend for home delivery is on the rise. Hence given this backdrop and JFL’s business
model- which focuses on delivering quality pizzas in a timely manner- the Company is
poised for growth going ahead.

Jubilant FoodWorks Limited, Q3 & 9M financial release 6

Jubilant FoodWorks Limited: Brief Overview

Introduction
Jubilant FoodWorks is India’s premier food-service company. It operates Domino’s Pizza
stores in India and Sri-Lanka (through a sub-franchisee). The Company is the largest
pizza chain in the country and fastest growing MNC chain in terms of growth of number
of stores. In each of the last three years JFL has received the “Distinguished Achievement
Award of the International Franchise Association” from Domino’s International as the
fastest Domino’s franchisees in the world.
There are four Company-owned regional supply chain centers or commissaries that
support the network of JFL’s stores. The focus on the logistics helps JFL attain consistent
quality, beget better prices from vendors and ensures time-bound delivery of articles to
the stores.

Key Business Perspectives

Exclusive franchisee and support of a globally successful brand: JFL operates its pizza
stores pursuant to a Master Franchise Agreement with Domino’s International, thus
providing it with an exclusive right to develop and operate Domino’s Pizza delivery
stores and the associated trademarks in the operation of pizza stores in India, Nepal,
Bangladesh and Sri Lanka. Such an association provides JFL with technical, marketing
and operational expertise to compete successfully with other restaurants in the Quick
Service Restaurants (QSR) industry in India. The term of the Master Franchise
Agreement continues until December 31, 2024 and is renewable for a period 10 years.
Domino’s Pizza in the U.S was founded in 1960 and at present spans across the globe
with a network of over 8,500 pizza stores in more than 60 countries.

Excellent project management: JFL has a robust store selection process based on factors
such as location visibility, presence of competition, household count as well as presence
of corporate and other institutions. A complete return-on-investment analysis
determines the feasibility of a store. An efficient internal project management ensures
that the store opening time ranges between 35-45 days on average from the date of
possession of the premises. The current pace of growth has been sustained due to
greater penetration, increased orders, launch of new stores and higher same store
growth.

Cost consciousness: JFL lays strong emphasis on developing a culture of responsibility

for costs at every level. All costs attributable to a store are charged at the store-level and
the store manager has discretion to take actions in order to increase sales or reduce costs.

Jubilant FoodWorks Limited, Q3 & 9M financial release 7

Moreover the policy of centralized sourcing from an optimal number of vendors further
facilitates cost efficiencies enabling the Company to reduce its manufacturing costs.
Reviews are undertaken through monthly and quarterly meetings of store and district
managers in different regions to review store-wise performance based on various cost
parameters. As part of the cost containment plan JFL undertakes a ROI analysis prior to
opening a store to determine the financial feasibility of the store.

Robust supply chain: The Company operates four regional supply

centers/commissaries located at Noida, Mumbai, Bangalore and Kolkata. These centres
ensure a timely delivery of raw materials and helps maintain consistency in quality. JFL
has centralised its purchasing, sourcing, warehousing and distribution of raw materials,
as well as the production of dough at its commissaries; this reduces the storage space
required at the store level, thus minimizing store operating costs. JFL has made key
investments in strengthening its logistics, which is a key growth attribute for the
Company.

Operational excellence: Standardized internal processes and strong operational

discipline have contributed to JFL’s sustainable growth. The base of the Company’s
operational success is its employee training programs which are holistic in nature and
cover every aspect of the store’s operations. Great emphasis on general hygiene, safety,
as well as branding of the stores and other key areas has enabled JFL to achieve efficient
compliance levels resulting in operational discipline which plays a key role in customer
satisfaction and overall success. JFL has been able to ensure the average delivery time of
22.50 minutes for an order across its operations as against customer guarantee of 30
minutes.

Robust Training structure : Employees of JFL are a critical link between the Company
and its customers and hence and it seeks to develop employee skills that will enhance
their work experience by providing continuous training, as well as providing
appropriate rewards and recognitions to them. JFL has in place a comprehensive
training program, which is structured to provide a growth path for all its employees,
from trainees to store managers, and has a dedicated “training ace” for each store, with
regional trainers and a dedicated training facility in each major city in which it operates.

Consumer focused and innovative marketing: The Company’s marketing strategy

seeks to leverage on the strength of the Domino’s brand to establish a distinctive image
in the minds of our customers of quality, reliability, value for money, variety and
customer service. It uses three distinct marketing platforms, (a) national marketing

Jubilant FoodWorks Limited, Q3 & 9M financial release 8

campaigns on television, print and radio, (b) local store marketing and (c) customer
relationship management.

Positive cash flows from operations: Given our strong operating model, each store
remains positive at operating level. Moreover, the Company in the past has operated
with negative working capital mainly due to (i) minimal receivables (ii) faster inventory
turnover rates as compared to normal payment terms on current liabilities. Moreover the
business is not seasonal in nature and further limits the Company’s working capital
requirements. Such factors enable the Company generate positive cash flows at the
operational level.

Key achievements and awards received in the past

• Rated 9th among 25 companies in the Hewitt Best Employers in India 2009 Study
• Rated among the Best Employers in Asia in the Hewitt Best Employers in the Asia
2009 Study
• Received the Best Employer Brand Award (Hospitality) from the Employee
Branding Franchising World.
• Award for Excellence(Customer Service) in Franchising and Business Development
by the Franchising World
• Ranked 17th in the ‘India’s Top Marketers Award 2009’ instituted by Pitch and the
exchange4media group
• Of the 21 Brands listed as ‘Game Changers of the Decade’ by Brand Reporter in
October 2009
• In 2008, received the highest score in ‘Employee Engagement’, ‘Training and
Development’, ‘HR Function’ and ‘Work Life Balance’ in “The Best Companies to
Work for in India: 2008 Study” conducted by Business Today TNS Mercer
• Received the Distinguished Achievement Award of the International Franchise
Association in 2008
• Rated 16th among 25 companies in the Hewitt Best Employers in India 2007 India
2007 Study
• Rated among the Best Employers in Asia in the Hewitt Best Employers in the Asia
2007 Study
• Received the highest score in ‘Employee Engagement’, ‘Training and Development’,
‘Satisfaction’, ‘Pay’, ‘Leadership Practices’ and ‘Performance Management Process’
in “The Best Companies to Work for in India: 2007 Study” conducted by Business
Today TNS Mercer
• Received the Distinguished Achievement Award of the International Franchise
Association in 2006 and 2007

Jubilant FoodWorks Limited, Q3 & 9M financial release 9

• Marketing Excellence Award by Domino’s International in recognition of superior
performance for Best New Product Launch and Advertising Campaign in 2006
• Effies 2005 Silver Award for the ‘30 minutes or free television commercial’
• Award for Excellence in Franchising, Licensing and Business Development by The
Franchising World 2004 and 2005

About us:

Jubilant FoodWorks Limited (JFL) is primarily a food-service company and currently

operates Domino’s Pizza stores in India and via a sub-franchisee in Sri Lanka. The
Company was incorporated in 1995 and initiated operations in 1996. At present JFL is
one of the largest food service companies in India with a network of 296 stores (as of 31
December, 2009) pan India and 5 stores in Sri Lanka.

The Company is the market leader in the organized pizza home delivery segment in
India with over 65% market share. JFL focuses on a home delivery and takeaway
oriented business model, which offers its customers the convenience of eating in the
comfort of their own homes and workspaces.

JFL operates its stores pursuant to a Master Franchise Agreement with Domino’s
International, which provides it with the exclusive right to develop and operate
Domino’s Pizza delivery stores and the associated trademarks in the operation of stores
in India, Nepal, Bangladesh and Sri Lanka.

For more updates and information on the Company, please log on to

www.dominos.co.in

For further information please contact:

Ravi S. Gupta Siddharth Rangnekar / Urvashi Butani
Jubilant FoodWorks Limited Citigate Dewe Rogerson
Tel: +91 120 4090 509 Tel: +91 22 4007 5005 / 5003
Fax: +91 120 4090 599 Fax: +91 22 2284 4561
Email: siddharth@cdr-india.com
E-mail: guptar@dominosin.com urvashi@cdr-india.com
Disclaimer
Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks
and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that
could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. JFL will not be
in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-
looking statements to reflect subsequent events or circumstances.

Jubilant FoodWorks Limited, Q3 & 9M financial release 10