Slides
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Sphera Franchise Group Investor & Analyst Call H1 2025 Results 29.08.2025
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Agenda for today’s call 2 Brand performance 4 3 Q&A session Business updates 2 1 H1 2025 Highlights
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Disclaimer This presentation is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of shares issued by Sphera Franchise Group SA ("Sphera"), or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy shares in Sphera. Neither this presentation nor anything in it shall form the basis of any contract or commitment. This presentation is not intended to be relied upon as advice or recommendation to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider this presentation in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. Sphera has prepared this presentation based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. This presentation should not be considered a comprehensive representation of Sphera's business, financial performance or results. This presentation may contain forward-looking statements. These statements reflect Sphera’s current knowledge and its expectations and projections about future events and may be identified by the context of such statements or words such as “anticipate,” “believe”, “estimate”, “expect”, “intend”, “plan”, “project”, “target”, “may”, “will”, “would”, “could” or “should” or similar terminology. Sphera undertakes no obligation to update or revise these forward–looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Inevitably, some assumptions may not materialize, and un-anticipated events and circumstances may affect the ultimate financial results. Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks. Therefore, the final results achieved may vary significantly from the forecasts, and the variations may be material. 3
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Welcome to SFG H1 2025 Results Call Călin Ionescu Chief Executive Officer Valentin Budeș Chief Financial Officer Zuzanna Kurek Investor Relations Officer 4
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H1 2025 Results Highlights 5
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Key H1 2025 Highlights 6 excl. IFRS16 H1 2025 Consolidated Sales RON 362.6 mn -0.9% vs. Q1 2024 RON 382.6 mn +2.3% vs. Q2 2024 RON 638.5 mn -0.1% vs. H1 2024 RON 93.1 mn +3.9% vs. H1 2024 RON 13.6 mn +24.5% vs. H1 2024 RON 641.7 mn -0.4% vs. H1 2024 RON 53.4 mn +0.5% vs. H1 2024 RON 50.1 mn +18.4% vs. H1 2024
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44.6 28.6 43.2 27.1 2024 2025 -37% Evolution of key indicators 7 337.8 352.1 347 372.8 2024 2025 4% 7% Expenses (Restaurant + G&A) Normalized EBITDA in RON m, excl. IFRS16 Restaurant operating profit Q1 -36% Q2 39.8 24.9 39.1 28 2024 2025 -28% -38% 724.9684.8 6% 55.7 87.8 -37% -33%52.8 78.9
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Q2 2025 key financials Data in RON’000 Q2’25 Q2’24 Y/Y % Restaurant sales 382,622 374,085 2.3% Other restaurant income 339 247 37.0% Restaurant expenses 355,862 331,173 7.5% Restaurant operating profit 27,099 43,159 -37.2% General & Admin expenses 16,967 15,806 7.3% EBITDA 26,364 39,127 -32.6% Normalized EBITDA 27,982 39,127 -28.5% Operating profit 10,132 27,353 -63.0% Finance costs 2,752 2,596 6.0% Finance income 242 118 104.8% Profit before tax 7,623 24,876 -69.4% Income tax expense 2,853 5,674 -49.7% Profit for the period 4,770 19,202 -75.2% Normalized profit for the period 9,849 19,202 -48.7% In Q2 2025, SFG recorded total sales of RON 382.6 million, up 2.3% YoY. This modest growth was influenced by political instability and the discussions around the imminent fiscal measures to address the budget deficit. 8 Normalized EBITDA margin decreased 3.1 pp YoY, due to cost inflation, particularly on payroll and other operating expenses, which continued to erode the margins. At the level of restaurant expenses, all categories except advertising rose in Q2 2025 at a faster pace than sales, increasing 7.5% YoY. Normalized net profit decreased 48.7% YoY, to RON 9.8 million in Q2 2025 due to limited capability to restrain operating costs in the context of lower than expected sales and inflationary environment. in RON m, excl. IFRS16 Food and material costs increased by 4.7% YoY to RON 122.1 million, driven mainly by higher poultry prices.
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H1 2025 key financials Data in RON’000 H1’25 H1’24 Y/Y % Restaurant sales 745,209 740,009 0.7% Other restaurant income 2,321 1,019 127.8% Restaurant expenses 691,873 653,259 5.9% Restaurant operating profit 55,656 87,769 -36.6% General & Admin expenses 33,004 31,564 4.6% EBITDA 51,213 78,907 -35.1% Normalized EBITDA 52,830 78,907 -33.0% Operating profit 22,652 56,205 -59.7% Finance costs 4,357 5,235 -16.8% Finance income 359 174 106.4% Profit before tax 18,654 51,144 -63.5% Income tax expense 6,070 10,492 -42.1% Profit for the period 12,584 40,652 -69.0% Normalized profit for the period 17,664 40,652 -56.5% In H1 2025 sales across the Group increased 0.7%, reaching RON 745.2 million, with this moderate increase being impacted by a continued consumer caution trend amid political and economic uncertainty and a strong base effect from H1 2024. 9 Normalized EBITDA margin decreased 3.6pp YoY, due pressure on margins and cost inflation, particularly on payroll and other operating expenses. The restaurant expenses amounted, in H1 2025, to RON 691.9 million, a 5.9% increase, outpacing the growth in the restaurant sales. Due to inflationary pressures, all categories except advertising and royalties, increased at faster pace than sales. The decline of 69% in net profit, to RON 12.6 million, was driven by a combination of elevated operating expenses, especially payroll and other operating costs, stagnant sales in Romania, margin compression, and a 35.1% drop in EBITDA. in RON m, excl. IFRS16 Food and material costs grew moderate 2%, to RON 237.5 million, driven by the cost-pressures on the supply chain experienced in Q2 2025.
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Brand performance 10
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Marketing KFC 11
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Sales brand performance: KFC 12 12.3% 2.8% 3.3% -2.5% -6.4% -3.5% 12.8% 4.8% 7.6% 1.2% -3.4% 0.0%Q1'24 Q2'24 Q3'24 Same store All store 5.7% 4.4% 1.7% 5.7% 3.3% 4.3% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Same store / All store 12.4% 10.8% 7.5% -2.4% -1.8% -0.5% 9.4% 25.9% 23.2% 25.8% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Same store All store Q1’25 Q4’24 Q2’25
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Sales brand performance: Pizza Hut 13 -12.0% -7.6% -2.9% -0.5% -1.0% 2.0% Same store / All store Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25
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Sales brand performance: Taco Bell 14 5.4% 2.6% 13.1% 8.7% 8.1% 12.8%12.9% 15.6% 21.2% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Same store All store
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Evolution of orders for delivery 15 18% 17% 16% 17% 19% 19% 9% 8% 8% 12% 12% 11% 32% 33% 34% 30% 35% 31% 36% 38% 35% 36% 35% 37% 27% 26% 25% 23% 28% 27% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 KFC RO KFC IT KFC MD PH RO TB RO
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Business updates 16
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17 Business NOTE: 1 PHD sub-franchise not included above. Food Court In Line Drive-through Network as of 30.06.2025 In Q1 2025, Sphera opened one new restaurant – a KFC drive-thru unit in Galati, Romania. In Q2 2025, Sphera opened 3 new restaurants – two KFCs in Romania, both being a food-court locations, one in Mall Moldova in Iasi, and another in Pitesti NEPI Retail Park, as well as the first Cioccolatitaliani location in Italy, in Riccione, within the Rimini tourist area. As of June 30th, 2025, Sphera Franchise Group operated 177 restaurants: 110 KFC restaurants in Romania, 3 in Moldova and 18 in Italy, as well as 28 Pizza Hut restaurants in Romania, 16 Taco Bell restaurants in Romania, 1 Cioccolatitaliani restaurant in Italy and one Pizza Hut Delivery sub-franchise. 73 24 34 16 21 7 1
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Revised 2025 Budget 18 in RON m, excl. IFRS16 (*) Financial indicators included in Sphera Franchise Group S.A. Remuneration Policy relevant for variable remuneration calculation. 1) Free Cash Flow = EBITDA - Δ Working Capital - Investments Indicator 2025 Updated Guidance 2025 Approved Budget 2025 Updated Guidance vs 2025 Approved Budget RON millions % Sales RON millions % Sales % ← [Range] → [Range Average] ← [Range] → Total Sales (*) 1600.0 1650.0 100.0% 1738.2 100.0% -7.9% -5.1% EBITDA normalized (excluding IFRS 16 impact) (*) 140.0 150.0 8.9% 194.3 11.2% -27.9% -22.8% Profit for the year normalized (*) 63.0 70.0 4.1% 105.2 6.1% -40.1% -33.5% Free Cash Flow 1) (*) 62.0 72.0 95.6
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19 Capital markets BET: +12% BET-TR: +17% SFG: -5% SFG-TR: -3% Liquidity: +40% YoY H1 2025 evolution share price vs. market RON 1.09 gross dividend per share was paid on June 6th.
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Q&A session 20
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21 Sphera Franchise Group’s consolidated H1 2025 results are available for download our website: www.spheragroup.com. The recording of this conference call will be available on our website shortly. For any follow-up questions related to Sphera Franchise Group’s activity on the Bucharest Stock Exchange, please contact Zuzanna Kurek, IRO, at: investor.relations@spheragroup.com. Thank you for joining us!