SPUR CORP. LIMITED INTEGRATED REPORT 2014

Strategy, risks and key performance indicators (“KPIs”)

Key performance indicators (“KPIs”)

This table details key historic and target information for Spur Corporation and its brands.

KPI 2011 2012 2013* Target 2014 2014 Target 2015 Target 2019
Financial performance              
Operating profit before finance income (Rm) 112.0 168.9 190.6 205.3 194.6 215.0 345.5
Growth in adjusted operating profit (as defined here) 4.4% 26.6% 21.1% 15.0% (2.3%) 11.4% 15.0%
Operating profit margin (as defined here) 32.2% 32.7% 29.7% 29.6% 26.6% 28.0% 34%
Return on equity (as defined here) 21.1% 26.0% 29.7% 27.0% 26.4% 27.0% 28.0%
Return on investment (dividends per share plus change in share price for the year expressed as a percentage of share price at the beginning the year) 18.9% 35.5% 59.3% 15.0% 22.2% 15.0% 15.0%
               
Restaurants              
New local restaurants              
– Spur 10 12 14 6 9 10 10pa
– Panarottis 7 3 10 5 8 10 8pa
– John Dory’s 3 1 2 4 5 7 4pa
– Captain DoRegos   2 11 11 4 8 10pa
– The Hussar Grill         0 6 3pa
               
Closed local restaurants              
– Spur 6 7 1   6    
– Panarottis 5 3 1   1    
– John Dory’s 2 1   1    
– Captain DoRegos   6 13   15    
– The Hussar Grill         0    
               
Total local restaurants              
– Spur 249 254 267 269 270 278 310
– Panarottis 52 52 61 65 68 77 105
– John Dory’s 27 28 29 33 33 38 50
– Captain DoRegos   74 72 81 61 67 99
– The Hussar Grill         6 12 24
               
Relocated#/revamped local restaurants              
– Spur 32 64 58 45 68 40  
– Panarottis 2 8 7 12 11 8  
– John Dory’s 1 1 9 8 3 8  
– Captain DoRegos     0 7 2 5  
– The Hussar Grill         0 0  
               
Total restaurant turnover              
– Spur (Rm) 2 703 3 085 3 554 3 911 3 954 4 301 5 648
Percentage growth in restaurant turnover 9.9% 14.2% 15.2% 10.0% 11.3% 8.8%  
Percentage growth in existing restaurant turnover 7.9% 11.7% 13.0% 9.3% 9.8% 7.7%  
               
– Panarottis (Rm) 233 268 352 408 450 516 757
Percentage growth in restaurant turnover 4.5% 14.7% 31.4% 16.1% 28.2% 14.7%  
Percentage growth in existing restaurant turnover 0.3% 13.0% 22.4% 12.1% 15.2% 10.5%  
               
– John Dory’s (Rm) 194 222 247 295 299 347 541
Percentage growth in restaurant turnover 9.8% 14.2% 11.4% 19.4% 21.0% 16.1%  
Percentage growth in existing restaurant turnover 4.5% 11.7% 9.3% 11.2% 12.0% 8.50%  
               
– Captain DoRegos (Rm)   60 191 213 165 165 369
Percentage growth in restaurant turnover       11.5% (13.8%) 0.0%  
Percentage growth in existing restaurant turnover       5.5% (16.2%) (5.7%)  
               
– The Hussar Grill (Rm)         29 81 172
               
– Total worldwide (Rm) 3 489 4 048 4 859 5 424 5 509 6 145 8 684
               
Loyalty              
Family Card loyalty spend (Rbn) 0.2 0.8 1.1 1.2 1.7 1.9 2.7
Family Card membership (million) 0.2 1.1 1.4 1.5 1.7 1.9 2.5
Secret Tribe membership (million) 1.1 0.9 1.1 1.1 1.1 1.1 1.4
John’s Club loyalty spend (Rm) 24 36 42 46 71 85 113
John’s Club membership 37 630 50 753 119 891 135 000 166 000 199 000 260 000
               
Sustainable local franchise model              
Number of smaller format Spur outlets 4 7 10 13 12 14 22
Number of Panarottis Pizza Express outlets 4 5 9 11 10 6 12
               
International expansion              
Percentage of international revenue to total group revenue 28.9% 28.6% 31.3% 34.0% 34.4% 33.3% 36.1%
Percentage of international profits to total group profit before income tax (23.9%) 1.9% (3.7%) 3.2% 0.8% 3.4% 8.6%
Number of international outlets 36 48 50 57 52 62 85
               
Sustainable supply of raw materials              
Percentage of suppliers managed by the group that have adequate and appropriate sustainability plans in place 20% 64% 83% 83% 97% 100% 100%
Percentage of seafood products managed by the group that comply with SASSI guidelines 80% 95% 95% 95% 100% 100% 100%
               
Product responsibility              
Percentage of suppliers managed by the group that are HACCP/ISO22000 compliant 65% 91% 97% 97% 100% 100% 100%
Percentage of menu items that are rBST and MSG free 93% 93% 93% 93% 98% 100% 100%
               
Community support              
Contribution to JAM or similar organisation (R) 87 412 95 000 582 749 1 300 000 1 309 901 1 900 000 2 600 000
Contribution to FoodBank (corporate and employees) (R) 23 400 21 060 49 300 55 000 49 340 52 000 55 000
               
Skills development              
Number of people trained 4 269 5 171 7 220 8 000 8 565 8 800 9 680
Number of successful graduates of Spur College of Excellence 4 6 13 24 13 24 36
               
Head office employees              
Head office employee rotation 20% 10% 8% 10% 17% 10% 10%
Employee loans (education and housing) (R) 163 355 275 682 499 319 500 000 412 957 500 000 500 000
Employee training costs (including dependents’ bursaries) (R) 274 163 499 942 684 303 718 600 1 053 145 1 470 000 1 850 000
               
Environmental sustainability              
Corporate              
Carbon footprint (Energy kWh)   445 267 475 739 460 000 401 028 401 000 400 000
Percentage of waste recycled or composted 55% 70% 91% 95% 85% 90% 95%
Percentage water usage reductionΔ   0% 10% 15% 15% 15% 15%
Percentage travel reduction     22.1% increase on 2012 12.1% decrease on 2013 15.6% decrease on 2013 5% decrease on 2014 10% decrease on 2014
               
Procurement              
Percentage takeaway packaging made from renewable materials         58% 60% 65%
* Restated due to the adoption of IFRS10. Refer note 47.3 on this report for details of change in accounting policy.
# A relocation of a restaurant to a new site in the same general geographical area and where the franchisee remains the same is not considered a closure. Relocations are necessary as circumstances in areas change over time.
Δ Cumulative percentage reduction compared to baseline audit benchmark at July 2011.
Total weight of packaging amounted to 1 432.8 tons of which 832.3 tons was made from renewable materials and 600.5 tons was made from non-renewable materials.