Famous Brands Limited
Incorporated in the Republic of South Africa
Registration number: 1969/004875/06 | JSE share code: FBR | A2X share code: FBR
| ISIN code: ZAE000053328

Summarised Results
FOR THE YEAR ENDED 28 FEBRUARY 2022

Africa's leading branded food services franchisor

Famous Brands owns several well-known brands supported by a vertically
integrated business model and operations on three continents.

Famous Brands is a vertically integrated company with 3 968 employees,   17
restaurant brands and a network of 2 824 restaurants.

We operate franchised, master licence and Company-owned restaurants. Our
business model comprises four core pillars: Brands, Manufacturing, Logistics and
Retail.

Our restaurant network

South Africa (SA): 2 470
The rest of Africa and the Middle East (AME): 287 in 16 countries
The United Kingdom (UK): 67

The Brands portfolio is segmented into Leading (mainstream) Brands and Signature
(niche) Brands. Leading Brands are further categorised as Quick Service and
Casual Dining.

Our integrated Supply Chain comprises the Manufacturing, Logistics and Retail
operations that support our Brands' pillar in South Africa and selected
African countries. The primary function of our Supply Chain is to provide a
competitive advantage to franchise partners through efficient supply, product
innovation and margin management.

Financial highlights from continuing operations

Revenue
R6.5 bn
Up 38%

Headline earnings per share
356 cents
Up 568%

Operating profit
R630 m
Up 428%

Operating profit margin
9.7%
Up 7.2
2022 performance overview

Industry overview

The post-COVID restaurant environment will look entirely different from before,
and for the better. Establishments will be cleaner, safer and more
efficient.

Our operating environment has changed fundamentally in response to COVID-19, and
we have adapted accordingly. Some of these changes will be enduring and
beneficial to our business and franchise partners in the long term.

While we are not seeing many new competitor brands emerge, existing competitors
are well-entrenched, and competition is fierce. The franchise market has
also tightened, with franchisees shopping around for the best value proposition.

Customers are eating out less due to financial constraints and increasingly look
for value purchases. We strive to limit our menu price increases to remain
competitive. Our promotional activities focus on value for money propositions,
including sharing meals. We use our loyalty programmes to incentivise regular
purchases.

The year 2022 was characterised by:

- Lockdown restrictions, including curfews, alcohol bans and capacity
restrictions.
- High food inflation.
- Economic and political turmoil contributing to low business and consumer
confidence.
- Intensifying competition in a constrained consumer spending environment.
- Acceleration of technology adoption.
- South African-specific challenges include high unemployment, unrest, load
shedding and deteriorating infrastructure.

GROUP FINANCIAL PERFORMANCE FOR CONTINUING OPERATIONS

Our recovery was slowed by continued COVID-19 trading restrictions, weak
economic conditions in all markets, and to a lesser extent, the civil unrest
experienced in South Africa in July 2021. All our divisions performed better in
this financial year and benefited from our initial financial management
measures in response to the pandemic.

Total revenue increased by 38% to R6 476 million (2021: R4 684 million) and is
in line with 2020 revenue of R6 495 million. The operating profit increased
428% to R630 million (2021: R119 million), and the headline earnings per share
increased by 568% to 356 cents (2021: 53 cents). Compared to 2020, operating
profit was down 31% (2020: R912 million), and headline earnings were down by
24%.

Salient features                                                              %
change

(2022
versus
                                                     Unit         2021        2022
2021)
Revenue                                              R'million     4 684      6 476
  38
Operating profit                                     R'million       119        630
 428
Operating profit margin                                      %       2.5        9.7
Impairments                                          R'million      (194)       (33)
 (83)
Basic (loss)/earnings per share                      Cents          (127)       317
 350
Headline earnings per share (HEPS)                   Cents               53     356
 568
Statement of cash flows
Cash generated from operations                       R'million       521        871
  67
Net cash outflow utilised in investing activities    R'million       (57)      (117)
 107
Net cash outflow from financing activities           R'million      (322)      (433)
  34
Cash realisation rate*                                        %      108        102
   -
Statement of financial position
Cash and cash equivalents                            R'million       352        333
  (5)
Net asset value per share                            Cents           390        719
  84
Net debt^                                            R'million     1 464      1 126
  23
Net debt to EBITDA (leverage)                        Times          3.04       1.32
  56
Net debt to equity (gearing)                         Times          3.75       1.56
  58
Total equity                                         R'million       391        721
  84
Return on equity (ROE)**                                      %           5      64
   -
Return on capital employed (ROCE)^^                           %           5      29
   -

*    Cash generated by operations as a percentage of EBITDA.
^    Total interest-bearing borrowings (including lease liabilities) less cash.
**   Headline earnings as a percentage of average total equity.
^^   Operating profit divided by capital employed (which is calculated as the sum
of   total equity and interest-bearing debt and net lease liabilities).

CAPITAL MANAGEMENT

The total debt position at 28 February 2022 was R1 138 million (2021: R1 471
million), and Famous Brands repaid R358 million of borrowings in the 2022
financial year. Total debt facilities available at 28 February 2022 was R2 050
million. The Group's gearing improved by 58% from 3.75 times to 1.56 times.
Furthermore, its leverage improved by 56% from 3.04 times to 1.32 times, placing
the group in a strong position.

OPERATIONAL REVIEW

BRANDS

Growth in Sub-Saharan Africa has slowed, and while South Africa's economy has
rebounded, it is still a smaller economy than before the pandemic. Both
system-wide sales and margins remain under pressure.

Brands' revenue was up 62% to R918 million (2021: R567 million), reflecting
higher royalty payments due to improved restaurant turnovers. Leading Brands
revenue was up 58% to R773 million (2021: R491 million) while Signature Brands
revenue improved 91% to R145 million (2021: R76 million).

SA

The South African restaurant industry continued to face headwinds due to
COVID-19 restrictions, weak economic conditions and consumer apprehension
regarding
eating out. In addition, several franchise partners were impacted by civil
unrest in July 2021.

Famous Brands continues to provide ongoing direct financial support to affected
franchise partners in the form of royalty and marketing fee breaks.
Combined system-wide sales for SA across our Leading and Signature Brands
improved 37%, and like-for-like sales increased by 35%. Leading Brands'# system-
wide sales* improved by 36%, while like-for-like sales** grew by 33%. Signature
Brands' system-wide sales^ improved 55%, and like-for-like sales improved by
59%.

Combined system-wide sales for SA across our Leading and Signature Brands
improved 37%, and like-for-like sales increased by 35%. Leading Brands’#
system-wide
sales* improved by 36%, while like-for-like sales** grew by 33%. Signature
Brands’ system-wide sales^ improved 55%, and like-for-like sales improved by
59%.

# Leading Brands' sales refer to sales of the Leading brands trading in SA.
* System-wide sales refer to sales reported by all restaurants across the
network, including new restaurants opened during the year.
** Like-for-like sales refer to sales reported by all restaurants across the
network, excluding restaurants opened or closed during the year.
^ Signature Brands' sales refer to franchise and Company-owned store sales in
SA as well as sales across borders only where the brand is wholly-owned
   or a subsidiary, and the brand is not managed by the AME management team.

LEADING BRANDS PORTFOLIO

Leading Brands delivered improved results, despite continued COVID-19
restrictions and challenging economic conditions. Quick Service Restaurants
continued
to outperform Casual Dining Restaurants.
The investment in own delivery capability has paid off. Leading Brands
strengthened their strategic partnership with third-party delivery platforms,
ensuring that brands were present in all key marketplaces.

SIGNATURE BRANDS PORTFOLIO

Signature Brands overall sales turnover bounced back for the year but is still
lower than pre-COVID-19 levels. These brands are particularly impacted by
COVID-19 restrictions such as curfews, capacity reductions and alcohol
restrictions.

AME

The impact of COVID-19 gradually reduced during 2022, with most markets
recovering to 2020 trading levels by year-end. While several African countries
have
vaccination programmes, vaccination rates tend to be low.

AME revenue increased 9% to R346 million (2021: R316 million). System-wide sales
in this region increased by 20%, but are still below pre-pandemic levels.
The operating profit increased to R34 million (2021: R30 million).

UK

The UK began 2022 in a lockdown period where restaurants could only offer
delivery and take away services. Lockdown measures were eased in May 2021,
allowing indoor hospitability to reopen with social distancing measures in
place. In July 2021, all COVID-19 restrictions were lifted, allowing restaurants
to resume normal operations. The UK restaurant industry faces challenges due to
significant utility price increases, rising food inflation, supply chain
disruptions, fuel cost increases and poor labour availability.

Wimpy UK recorded revenue of R133 million (2021: R112 million), and operating
profit improved 18% to R17 million (2021: R14 million). The operating margin
remained 13%, indicating no change from 2021 (2021: 13%) before impairment to
goodwill.

Delivery sales declined to reflect that more customers had returned to dining in
restaurants.

VERTICAL INTEGRATION

Manufacturing

Manufacturing turnover increased 31% to R2.8 billion (2021: R2.1 billion) driven
by increased demand from the front end of the value chain. Operating profit
was up 65% on the prior year thanks to good volumes and some inflationary
increases.

Depending on the product line, production volumes are up by between 8% and 38%
in line with the recovery observed in our Leading Brands and Signature Brands.
Demand from Retail sales continued to grow.

Over the year, South Africa has seen significant food inflation, peaking at
6.9%. Our basket price pressures were mainly from beef, green coffee beans, milk
and whey powders, oil and spices. The stronger rand has helped soften some
significant increases in commodity prices.

COVID-19 continues to disrupt supply chains with a global shortage of vessels
and containers, resulting in higher shipping costs, higher costs of imported
goods and longer shipping timelines.

In April 2021, Famous Brands sold its interest in the Famous Brands Great Bakery
Company. In January 2022 we closed the Gauteng Bakery plant.

Logistics

The performance of Logistics improved due to the easing of COVID-19
restrictions, although this was slowed down by the COVID-19 third and fourth
wave and
July's civil unrest. Logistics turnover increased 35% to R4.1 billion (2021:
R3.0 billion). The operating margin increased to 1.5% (2021: -0.4%), while
national case volumes grew by 54%.

Retail

The Retail business continued with its strong performance with a 47% increase in
sales to R222 million (2021: R151 million). This is in line with the trend
towards increased home consumption. While introducing new products was slow in
the first half of 2022 due to retailers looking to limit in-store promotions
due to COVID-19, new product introductions have picked up.

DIVIDEND

The Board has declared a dividend of 200 cents per share. The Group has produced
significantly improved results which enabled the Board to consider paying a
dividend. The Board considered the Group's current performance and future
prospects. The dividend is being paid out of profits for the year ended
28 February 2022 in the amount of R200 million.

NOTICE OF DIVIDEND DECLARATION NUMBER 44 AND SALIENT FEATURES

Notice is hereby given that a gross dividend of 200 cents (2021: nil) per
ordinary share, payable out of income, has been declared in respect of the
financial year ended 28 February 2022. The salient dates for the payment of the
dividend are as follows:

Event Dates:
Declaration date                            30 May 2022
Last day to trade "cum dividend"            5 July 2022
Shares commence trading "ex-dividend"       6 July 2022
Record date                                 8 July 2022
Payment of dividend                         11 July 2022

Those shareholders of the Group who are recorded in the company's register as at
the record date will be entitled to the dividend. Share certificates may
not be dematerialised or rematerialised between 6 July 2022 and 8 July 2022,
both days inclusive.
In terms of dividends tax legislation, the following additional information is
disclosed:
- The local dividend tax rate is 20%.
- The net local dividend amount is 160 cents per share for shareholders liable
to pay the dividends tax and 200 cents per share for shareholders exempt

  from paying the dividends tax.
- The issued share capital of Famous Brands is 100 202 284 ordinary shares.
- Famous Brands' tax reference number is 9208085846

PROSPECTS

Our focus in 2023 is on operational excellence, prioritising core long-term
operations and improving investment returns for franchise partners.

Our short-term focus is to sustain our revenue while achieving positive cash
generation, while our medium-term focus is to recover margin. We have reduced
our interest-bearing debt in 2022 and expect to continue on this trajectory in
2023.

Our financial and investment decisions in the coming year will be based on the
following strategic imperatives:

-   Growing our Leading Brands in South Africa and AME.
-   Intensifying investment in high return assets.
-   Considering attractive and appropriate acquisitions.
-   Divesting from non-core activities.
-   Expanding our Logistics capacity.

Brands

For the next three years, our strategic focus is generating growth from our
existing Leading Brands portfolio through innovation in channels, formats and
footprint expansion. We will continue to invest in consumer-facing technology to
enhance our value proposition to customers and franchise partners.

Manufacturing

In our Manufacturing division, we are driving operational efficiencies and
managing and reducing our environmental footprint. We will invest further into
our best-performing manufacturing facilities and divest from selected
manufacturing operations if necessary.

Logistics

In Logistics, our next steps are to relocate our KwaZulu-Natal Distribution
Centre, move our Gauteng cold storage centre and secure a cross-
docking facility near Mthatha.

Retail

We remain on track to double our Retail business by growing our distribution
footprint and expanding our product range. We are executing our ambitious plans
to launch a minimum of 12 new products in the year ahead.

On behalf of the Board

SL Botha         DP Hele
Chairman         Chief Executive Officer

Midrand
31 May 2022

Administration

Directors
Norman Adami, Santie Botha (Independent Chairman), Chris Boulle, Deon Fredericks
(Group Financial Director)*, Nik Halamandaris, John Halamandres, Darren
Hele (CEO)*, Alex Maditse, Busisiwe Mathe, Fagmeedah Petersen-Cook.
* Executive

Group Company Secretary
Celeste Appollis

Registered office
478 James Crescent, Halfway House, Midrand, 1685 PO Box 2884, Halfway House,
1685
Telephone: +27 11 315 3000 | Email: investorrelations@famousbrands.co.za |
Website address: www.famousbrands.co.za

Transfer Secretaries
Computershare Investor Services Pty Limited
Registration number: 2004/003647/07 | Rosebank Towers, 15 Biermann Avenue,
Rosebank, 2196 | Private Bag X9000, Saxonwold, 2132

Sponsor
The Standard Bank of South Africa Limited | Registration number: 1969/017128/06
| 30 Baker Street, Rosebank, 2196

Auditors
KPMG | Registration number: 1999/012876/07 | 85 Empire Rd, Parktown,
Johannesburg, 2193

Forward looking statements disclaimer
This document contains forward looking statements, which are based on
assumptions and best estimates made by management relating to the Group's future
performance. Such statements are, by their nature, subject to risks and
uncertainties, which may result in the Group's actual performance in the future
being different from that expressed or implied in any forward looking
statements.

These statements have not been audited by the Group's external auditors. The
Group neither accepts any responsibility for any loss arising from the use of
the information contained in this report nor undertakes to update or revise any
of its forward looking statements publicly.

The content of this announcement is the responsibility of the directors of
Famous Brands. It is a summary of the information contained in the full
announcement as published on the 31 May 2022 at at
https://senspdf.jse.co.za/documents/2022/jse/isse/fbr/FY_22.pdf and at
www.famousbrands.co.za.