Restaurant Brands New Zealand Limited (RBD) owns the franchising rights (in New Zealand) for the Carl's Jnr, KFC, Pizza Hut, Starbucks and Taco Bell brands. RBD also purchased a large number of existing franchises in Australia in 2017, and in Hawaii (USA) in 2018. The financial statements for RBD have been provided on Canvas, with the necessary data in 'Restaurant Brands Ltd.csv' collected for you from RBD's annual reports from 2014-2019. In case you wish to have further detail, these annual reports are also made available for you on Canvas. Retail firms often report 52-week financial periods (with the occasional 53-week financial period), a practice also followed by RBD. Please adjust the relevant figures to a 365.25 day financial year equivalent. The New Zealand company tax rate is 28 percent. There are no preference shares or non-controlling interests. Also note the following: Use 'Assignment 1 template' (available on Canvas) in answering parts (a), (b), (c), (f), and (g). For each of the multi-year calculations, ONLY show workings for the year 2019. Required: (a) 'Common-Size' balance sheet and time-series analysis: i. Convert RBD's Balance Sheets into 'Common-Size' balance sheets for each year from 2013 to 2019. (2 marks) ii. How has RBD's asset composition changed from 2013 to 2019? (3 marks) iii. How has RBD's capital structure (liabilities and equity composition) changed from 2013 to 2019? (3 marks) (b) Assuming derivative financial instrument hedges are non-operating items, movement in foreign currency translation reserve is operating, and movement in share premium reserve is non-operating, calculate the following for RBD for each year from 2013 to 2019: i. Net Operating Profit After Tax (NOPAT) (3 marks) ii. Net Non-operating Expense (NNE) (2 marks) iii. Clean Surplus Profit (CSP) (1 mark) iv. Net Operating Assets (NOA) (3 marks) V. Net Non-operating Obligations (NNO) (2 marks) vi. Common Shareholders' Equity (CSE) (1 mark) Note: the separation of Cash on Hand and Cash at Bank is located in the Cash Flow Statement section. (c) Using your calculations from part (b), calculate the following for RBD for each year from 2014 to 2019: i. Net Operating Profit Margin (NOPM) (1 mark) ii. Net Operating Asset Turnover (NOAT) (use Sales revenue, not Total operating revenue) (1 mark) iii. Return on Net Operating Assets (RNOA) (1 mark) iv. Net Non-operating Expense Percentage (NNEP) (1 mark) V. Spread (1 mark) vi. Financial Leverage (Flev) (1 mark) vii. Non-operating Return (1 mark) viii. Return on Common Equity (ROCE) (1 mark) (d) Using your calculations from part (c), discuss how RBD's financial performance has changed from 2014 to 2019? Maximum 200 words. (7 marks) (e) The restaurant industry contains a variety of restaurants, ranging from low-end (cheaper) to high-end (expensive). The overall restaurant industry average NOAT ratio is 1.5 and profit margin (gross profit divided by sales) is 35%. Is RBD in the low-end, middle or high-end of the restaurant industry? Explain. (3 marks) Calculate the Altman Z-score for RBD for each year from 2013 to 2019. (6 marks) (g) Calculate the following for RBD for each year from 2013 to 2019: i. Current ratio (1 mark) ii. Quick ratio (note that RBD has no marketable securities) (1 mark) iii. Liabilities-to-Equity (1 mark) iv. Long-term-debt-to-Equity (assume all the debt is long-term) (1 mark) V. Times-interest-earned (1 mark) vi. Cash from operations to total debt (1 mark) vii. Free operating cash flow to total debt (use the net purchases of PPE as CapEx) (1 mark) (h) Using your calculations from parts (f) and (g), what is your overall assessment of RBD's credit risk during the years 2013 to 2019? Maximum 200 words. (11 marks) I B 25-Feb-19 C 26-Feb-18 D 27-Feb-17 E 29-Feb-16 F 2-Mar-15 G 24-Feb-14 H 25-Feb-13 Restaurant Brands New Zealand Limited 2 Statement of Financial Position (NZD $000) 3 Current assets 770 70,390 621 3,652 1,093 508 2,447 15,034 595 11,514 2,734 10,226 1,038 41,141 1,750 10,140 556 8,263 0 12,634 2,396 33,989 1,575 373 6,889 0 9,475 798 0 2,180 0 1,776 0 0 8,659 0 1,587 2,353 6,460 0 83,322 12,613 1 8,312 4,754 100,641 20,549 85,651 18,785 153,400 249,093 339 16,304 419,136 460,277 O 157,211 246,257 538 14,955 418,961 452,950 124,379 84,361 0 10,325 219,065 302,387 100,300 21,060 0 4,933 126,293 144,605 80,231 18,424 0 3,223 5,994 127.184 139,797 2,570 107,006 111,760 108,338 4,275 25,711 47,675 1,567 792 362 2,475 12,556 13,889 251 4,167 28,873 38,675 1,683 930 0 0 74,328 5 Cash and cash equivalents 6 Trade receivables (no allowance for doubtful debts) 7 Prepayments and other receivables 8 Tax receivable 9 Inventories 10 Assets Held for Resale 11 Total current assets 12 Non-current assets 13 Property, plant and equipment (net) 14 Intangible assets 15 Derivative financial instruments 16 Deferred tax asset 17 Total non-current assets 18 Total assets 19 Current liabilities 20 Income tax payable 21 Trade creditors 22 Other creditors and accruals 23 Provision for employee entitlements 24 Deferred operating income 25 Interest-bearing loans 26 Derivative financial instruments 27 Total current liabilities 28 Non-current liabilities 29 Provision for employee entitlements Deferred operating income 31 Derivative financial instruments 32 Interest-bearing loans 33 Total non-current liabilities 34 Total liabilities 35 Equity attributable to shareholders 36 Share capital 37 Retained earnings 38 Foreign currency translation reserve 39 Share option reserve 40 Derivative hedging reserve 41 Total equity attributable to shareholders 42 Total equity and liabilities 43 44 Shares outstanding ('000) 45 Share price 46 47 Restaurant Brands New Zealand Limited 3,647 24,332 26,038 1,301 1,065 0 1,634 58,017 2,836 19,301 21,984 317 999 0 331 45,768 2,726 11,944 14,651 221 1,358 8,206 3,422 21,405 18,173 268 1,219 112 207 44,806 1.839 6 116 186 31,312 80,382 39,112 676 5,153 470 5,267 688 5,345 395 4,044 782 7,852 1,100 145,491 155,225 235,607 813 8,876 510 166,815 177,014 251,342 480 4,853 0 14,783 20,116 51,428 46,482 52,311 110,328 12,675 18,412 64,180 22,556 28,589 73,395 131 4,570 43,682 154,565 72,456 -1,871 143,386 52,369 -2,522 26,756 37,847 148,491 58,969 -6,060 34 174 201,608 452,950 53 26,756 49,046 53 0 -238 75,617 139,797 26,756 44,550 53 0 - 149 71,210 144,605 26,723 33,530 79 0 0 - 480 224,670 460,277 - 1,174 192,059 302,387 64,656 108,338 60,332 111,760 97,871 124,759 123,629 8.627 .13 122,843 5.39 97,871 4.075 97,871 2.86 97,850 2.73 3.95 25-Feb-19 26-Feb-18 27-Feb-17 29-Feb-16 2-Mar-15 24-Feb-14 25-Feb-13 D E F G H 48 Comprehensive Income Statement (NZD $000) for the 52-week period (53-week for 2015) 49 Sales revenue 794,046 50 Other revenue 30,869 51 Total operating revenue 824,915 52 Cost of goods sold -675,697 53 Gross profit 149,218 54 Distribution expenses -3,629 55 Marketing expenses -44,542 56 General and administration expenses -35,818 57 EBIT from continuing operations 65,229 58 Discontinued operations -8,997 59 Earnings before interest and taxation (EBIT) 56,232 60 Interest revenue 61 Interest expense -6,864 62 Net financing expenses -6,797 63 Profit before taxation 49,435 64 Taxation expense -13,694 65 Profit after taxation attributable to shareholders 35,741 66 Other comprehensive income 67 Movement in foreign currency translation reserve (net of taxes) 4,189 68 Movement in share option reserve (net of taxes) -34 69 Movement in derivative hedging reserve (net of taxes) -654 70 Total comprehensive income attributable to shareholders 39,242 740,776 25,513 766,289 -628,169 138,120 -2,895 -40,095 -31,948 63,182 -5,429 57,753 227 -5,831 -5,604 52,149 -16,683 35,466 497,179 20,370 517,549 -421,872 95,677 -2,764 -28,107 -20,364 44,442 -5,063 39,379 428 -2,719 -2,291 37,088 -11,133 25,955 387,564 16,531 404,095 -329,983 74,112 -2,505 -20,654 -16,434 34,519 -452 34,067 28 -1,019 -991 33,076 -9,006 24,070 359,528 13,075 372,603 -304,190 68,413 -2,321 -18,892 -15,105 32,095 1,328 33,423 329,269 1,130 330,399 -273,493 56,906 -2,464 -14,656 -13,088 26,698 1,472 28,170 19 -774 -755 27,415 -7,462 19,953 311,901 912 312,813 -258,081 54,732 -2,672 -13,716 -13,203 25,141 -2,405 22,736 13 -851 -838 21,898 -5,739 16,159 67 -963 -961 32,462 -8,632 23,830 -3,538 34 -2,575 0 -936 22,444 0 0 -89 23,981 0 0 -149 23,681 0 0 0 19,953 0 0 0 16,159 1,348 33,310 71 F 2-Mar-15 G 24-Feb-14 H 25-Feb-13 25-Feb-19 26-Feb-18 27-Feb-17 29-Feb-16 403,960 330,399 372,230 -325,561 825,540 -731,317 67 -6,868 -16,159 71,263 763,573 674,371 227 -5,852 -15,809 19 515,257 451,560 428 2,746 -13,471 47,908 28 -1,014 -10,618 44,312 312,813 -271,923 13 899 5,239 34,765 -1,046 -9,159 36,466 -955 -7,438 32,652 73 Restaurant Brands New Zealand Limited 74 Cash Flow Statement (NZD $000) for the 52-week period (53-week for 2015) 75 Cash flows from operating activities 76 Cash was provided by / (applied to): 77 Receipts from customers 78 Payments to suppliers and employees 79 Interest received 80 Interest paid 81 Payment of income tax 82 Net cash from operating activities 83 84 Cash flows from investing activities 85 Cash was (applied to) / provided by: 86 Acquisition of business 87 Payment for intangibles 88 Purchase of property, plant and equipment 89 Proceeds from disposal of property, plant and equipment 90 Landlord contributions received 91 Net cash used in investing activities 92 93 Cash flows from financing activities 94 Cash was provided by / (applied to): 95 Proceeds from non-current loans 96 Repayment of non-current loans 97 Share capital raised 98 Dividends paid to shareholders 99 Share issue costs 100 Net cash from / (used in) financing activities 0 -3,820 -33,114 10,159 46 -26,729 -147,502 4,772 -26,353 4,064 1,222 173,341 -63,905 3,658 - 16,628 4,220 961 -79,010 0 -1,663 -19,157 2,667 2,808 -15,345 10,388 -2,836 -28,184 8,384 0 -1,841 -20,620 12,398 0 -1,781 -22,406 4,355 -33,024 -10,063 -19,832 446,116 14,490 336,535 -358,487 286,650 -296,525 0 -6,562 451,716 -387,024 0 -23,700 -63 40,929 1,060 0 73 -15,968 -19,574 -17,127 -16,084 -17,700 -58 -39,710 93,869 -22,632 -2,739 99,249 0 0 -29,449 -2,637 -22,617 -14,835 101 4,824 -64,644 68,147 482 805 -28 98 10,140 1,575 770 0 70 70,390 4,621 227 10,140 1,093 1,457 -307 70,390 798 0 0 770 700 0 0 798 15,034 1,093 1,575 102 Net increase / (decrease) in cash and cash equivalents 103 104 Reconciliation of cash and cash equivalents 105 Cash and cash equivalents at the beginning of the period 106 Opening cash balances acquired on acquisition 107 Foreign exchange movements 108 Cash and cash equivalents at the end of the period 109 110 Cash and equivalents comprise: 111 Cash on hand 112 Cash at bank 113 114 115 Cash and equivalents comprise (in NZD): 116 New Zealand Dollars 117 Australian Dollars 118 United States Dollars 119 120 446 14,588 15,034 513 9,627 10,140 310 70,080 70,390 218 875 1,093 222 1,353 1,575 204 566 770 249 549 798 1,575 65,989 4,401 1,093 0 770 0 798 0 3,053 5,619 6,362 15,034 5,767 3,420 10,140 70,390 1,093 1,575 770 798 H 24-Feb-14 1 (a) 25-Feb-19 26-Feb-18 27-Feb-17 29-Feb-16 2-Mar-15 25-Feb-13 3 7 11 21 22 Restaurant Brands New Zealand Limited Common Size Balance Sheet Current assets Cash and cash equivalents Trade receivables Prepayments and other receivables Tax receivable Inventories Assets Held for Resale Total current assets Non-current assets Property, plant and equipment (net) Intangible assets Derivative financial instruments Deferred tax asset Total non-current assets Total assets Current liabilities Income tax payable Trade creditors Other creditors and accruals Provision for employee entitlements Deferred operating income Interest-bearing loans Derivative financial instruments Total current liabilities Non-current liabilities Provision for employee entitlements Deferred operating income Derivative financial instruments Interest-bearing loans current liabilities Total liabilities Equity attributable to shareholders Share capital Retained earnings Foreign currency translation reserve Share option reserve Derivative hedging reserve Total equity attributable to shareholders Total equity and liabilities 23 24 27 28 30 31 35 36 38 Total equity and liabilities 42 43 (b) 25-Feb-19 26-Feb-18 27-Feb-17 29-Feb-16 2-Mar-15 24-Feb-14 25-Feb-13 45 46 Restaurant Brands New Zealand Limited NOPAT NNE CSP NOA NNO CSE 47 48 49 50 51 (c) 25-Feb-19 26-Feb-18 27-Feb-17 29-Feb-16 2-Mar-15 24-Feb-14 25-Feb-13 54 55 Restaurant Brands New Zealand Limited NOPM NOAT RNOA NNEP Spread Flev Non-operating Return ROCE 56 58 59 61 () 25-Feb-19 26-Feb-18 27-Feb-17 29-Feb-16 2-Mar-15 24-Feb-14 25-Feb-13 62 63 Restaurant Brands New Zealand Limited WC/TA ROA ATO RE/TA MVE/TL Z-Score 65 66 67 69 (g) 25-Feb-191 26-Feb-18 27-Feb-17| 29-Feb-16 2-Mar-15 24-Feb-14 25-Feb-13 71 72 73 74 75 76 Restaurant Brands New Zealand Limited Current Quick Liabilities-to-Equity LTDebt-to-Equity Times Interest-Earned CFO-Debt FCF-Debt Restaurant Brands New Zealand Limited (RBD) owns the franchising rights (in New Zealand) for the Carl's Jnr, KFC, Pizza Hut, Starbucks and Taco Bell brands. RBD also purchased a large number of existing franchises in Australia in 2017, and in Hawaii (USA) in 2018. The financial statements for RBD have been provided on Canvas, with the necessary data in 'Restaurant Brands Ltd.csv' collected for you from RBD's annual reports from 2014-2019. In case you wish to have further detail, these annual reports are also made available for you on Canvas. Retail firms often report 52-week financial periods (with the occasional 53-week financial period), a practice also followed by RBD. Please adjust the relevant figures to a 365.25 day financial year equivalent. The New Zealand company tax rate is 28 percent. There are no preference shares or non-controlling interests. Also note the following: Use 'Assignment 1 template' (available on Canvas) in answering parts (a), (b), (c), (f), and (g). For each of the multi-year calculations, ONLY show workings for the year 2019. Required: (a) 'Common-Size' balance sheet and time-series analysis: i. Convert RBD's Balance Sheets into 'Common-Size' balance sheets for each year from 2013 to 2019. (2 marks) ii. How has RBD's asset composition changed from 2013 to 2019? (3 marks) iii. How has RBD's capital structure (liabilities and equity composition) changed from 2013 to 2019? (3 marks) (b) Assuming derivative financial instrument hedges are non-operating items, movement in foreign currency translation reserve is operating, and movement in share premium reserve is non-operating, calculate the following for RBD for each year from 2013 to 2019: i. Net Operating Profit After Tax (NOPAT) (3 marks) ii. Net Non-operating Expense (NNE) (2 marks) iii. Clean Surplus Profit (CSP) (1 mark) iv. Net Operating Assets (NOA) (3 marks) V. Net Non-operating Obligations (NNO) (2 marks) vi. Common Shareholders' Equity (CSE) (1 mark) Note: the separation of Cash on Hand and Cash at Bank is located in the Cash Flow Statement section. (c) Using your calculations from part (b), calculate the following for RBD for each year from 2014 to 2019: i. Net Operating Profit Margin (NOPM) (1 mark) ii. Net Operating Asset Turnover (NOAT) (use Sales revenue, not Total operating revenue) (1 mark) iii. Return on Net Operating Assets (RNOA) (1 mark) iv. Net Non-operating Expense Percentage (NNEP) (1 mark) V. Spread (1 mark) vi. Financial Leverage (Flev) (1 mark) vii. Non-operating Return (1 mark) viii. Return on Common Equity (ROCE) (1 mark) (d) Using your calculations from part (c), discuss how RBD's financial performance has changed from 2014 to 2019? Maximum 200 words. (7 marks) (e) The restaurant industry contains a variety of restaurants, ranging from low-end (cheaper) to high-end (expensive). The overall restaurant industry average NOAT ratio is 1.5 and profit margin (gross profit divided by sales) is 35%. Is RBD in the low-end, middle or high-end of the restaurant industry? Explain. (3 marks) Calculate the Altman Z-score for RBD for each year from 2013 to 2019. (6 marks) (g) Calculate the following for RBD for each year from 2013 to 2019: i. Current ratio (1 mark) ii. Quick ratio (note that RBD has no marketable securities) (1 mark) iii. Liabilities-to-Equity (1 mark) iv. Long-term-debt-to-Equity (assume all the debt is long-term) (1 mark) V. Times-interest-earned (1 mark) vi. Cash from operations to total debt (1 mark) vii. Free operating cash flow to total debt (use the net purchases of PPE as CapEx) (1 mark) (h) Using your calculations from parts (f) and (g), what is your overall assessment of RBD's credit risk during the years 2013 to 2019? Maximum 200 words. (11 marks) I B 25-Feb-19 C 26-Feb-18 D 27-Feb-17 E 29-Feb-16 F 2-Mar-15 G 24-Feb-14 H 25-Feb-13 Restaurant Brands New Zealand Limited 2 Statement of Financial Position (NZD $000) 3 Current assets 770 70,390 621 3,652 1,093 508 2,447 15,034 595 11,514 2,734 10,226 1,038 41,141 1,750 10,140 556 8,263 0 12,634 2,396 33,989 1,575 373 6,889 0 9,475 798 0 2,180 0 1,776 0 0 8,659 0 1,587 2,353 6,460 0 83,322 12,613 1 8,312 4,754 100,641 20,549 85,651 18,785 153,400 249,093 339 16,304 419,136 460,277 O 157,211 246,257 538 14,955 418,961 452,950 124,379 84,361 0 10,325 219,065 302,387 100,300 21,060 0 4,933 126,293 144,605 80,231 18,424 0 3,223 5,994 127.184 139,797 2,570 107,006 111,760 108,338 4,275 25,711 47,675 1,567 792 362 2,475 12,556 13,889 251 4,167 28,873 38,675 1,683 930 0 0 74,328 5 Cash and cash equivalents 6 Trade receivables (no allowance for doubtful debts) 7 Prepayments and other receivables 8 Tax receivable 9 Inventories 10 Assets Held for Resale 11 Total current assets 12 Non-current assets 13 Property, plant and equipment (net) 14 Intangible assets 15 Derivative financial instruments 16 Deferred tax asset 17 Total non-current assets 18 Total assets 19 Current liabilities 20 Income tax payable 21 Trade creditors 22 Other creditors and accruals 23 Provision for employee entitlements 24 Deferred operating income 25 Interest-bearing loans 26 Derivative financial instruments 27 Total current liabilities 28 Non-current liabilities 29 Provision for employee entitlements Deferred operating income 31 Derivative financial instruments 32 Interest-bearing loans 33 Total non-current liabilities 34 Total liabilities 35 Equity attributable to shareholders 36 Share capital 37 Retained earnings 38 Foreign currency translation reserve 39 Share option reserve 40 Derivative hedging reserve 41 Total equity attributable to shareholders 42 Total equity and liabilities 43 44 Shares outstanding ('000) 45 Share price 46 47 Restaurant Brands New Zealand Limited 3,647 24,332 26,038 1,301 1,065 0 1,634 58,017 2,836 19,301 21,984 317 999 0 331 45,768 2,726 11,944 14,651 221 1,358 8,206 3,422 21,405 18,173 268 1,219 112 207 44,806 1.839 6 116 186 31,312 80,382 39,112 676 5,153 470 5,267 688 5,345 395 4,044 782 7,852 1,100 145,491 155,225 235,607 813 8,876 510 166,815 177,014 251,342 480 4,853 0 14,783 20,116 51,428 46,482 52,311 110,328 12,675 18,412 64,180 22,556 28,589 73,395 131 4,570 43,682 154,565 72,456 -1,871 143,386 52,369 -2,522 26,756 37,847 148,491 58,969 -6,060 34 174 201,608 452,950 53 26,756 49,046 53 0 -238 75,617 139,797 26,756 44,550 53 0 - 149 71,210 144,605 26,723 33,530 79 0 0 - 480 224,670 460,277 - 1,174 192,059 302,387 64,656 108,338 60,332 111,760 97,871 124,759 123,629 8.627 .13 122,843 5.39 97,871 4.075 97,871 2.86 97,850 2.73 3.95 25-Feb-19 26-Feb-18 27-Feb-17 29-Feb-16 2-Mar-15 24-Feb-14 25-Feb-13 D E F G H 48 Comprehensive Income Statement (NZD $000) for the 52-week period (53-week for 2015) 49 Sales revenue 794,046 50 Other revenue 30,869 51 Total operating revenue 824,915 52 Cost of goods sold -675,697 53 Gross profit 149,218 54 Distribution expenses -3,629 55 Marketing expenses -44,542 56 General and administration expenses -35,818 57 EBIT from continuing operations 65,229 58 Discontinued operations -8,997 59 Earnings before interest and taxation (EBIT) 56,232 60 Interest revenue 61 Interest expense -6,864 62 Net financing expenses -6,797 63 Profit before taxation 49,435 64 Taxation expense -13,694 65 Profit after taxation attributable to shareholders 35,741 66 Other comprehensive income 67 Movement in foreign currency translation reserve (net of taxes) 4,189 68 Movement in share option reserve (net of taxes) -34 69 Movement in derivative hedging reserve (net of taxes) -654 70 Total comprehensive income attributable to shareholders 39,242 740,776 25,513 766,289 -628,169 138,120 -2,895 -40,095 -31,948 63,182 -5,429 57,753 227 -5,831 -5,604 52,149 -16,683 35,466 497,179 20,370 517,549 -421,872 95,677 -2,764 -28,107 -20,364 44,442 -5,063 39,379 428 -2,719 -2,291 37,088 -11,133 25,955 387,564 16,531 404,095 -329,983 74,112 -2,505 -20,654 -16,434 34,519 -452 34,067 28 -1,019 -991 33,076 -9,006 24,070 359,528 13,075 372,603 -304,190 68,413 -2,321 -18,892 -15,105 32,095 1,328 33,423 329,269 1,130 330,399 -273,493 56,906 -2,464 -14,656 -13,088 26,698 1,472 28,170 19 -774 -755 27,415 -7,462 19,953 311,901 912 312,813 -258,081 54,732 -2,672 -13,716 -13,203 25,141 -2,405 22,736 13 -851 -838 21,898 -5,739 16,159 67 -963 -961 32,462 -8,632 23,830 -3,538 34 -2,575 0 -936 22,444 0 0 -89 23,981 0 0 -149 23,681 0 0 0 19,953 0 0 0 16,159 1,348 33,310 71 F 2-Mar-15 G 24-Feb-14 H 25-Feb-13 25-Feb-19 26-Feb-18 27-Feb-17 29-Feb-16 403,960 330,399 372,230 -325,561 825,540 -731,317 67 -6,868 -16,159 71,263 763,573 674,371 227 -5,852 -15,809 19 515,257 451,560 428 2,746 -13,471 47,908 28 -1,014 -10,618 44,312 312,813 -271,923 13 899 5,239 34,765 -1,046 -9,159 36,466 -955 -7,438 32,652 73 Restaurant Brands New Zealand Limited 74 Cash Flow Statement (NZD $000) for the 52-week period (53-week for 2015) 75 Cash flows from operating activities 76 Cash was provided by / (applied to): 77 Receipts from customers 78 Payments to suppliers and employees 79 Interest received 80 Interest paid 81 Payment of income tax 82 Net cash from operating activities 83 84 Cash flows from investing activities 85 Cash was (applied to) / provided by: 86 Acquisition of business 87 Payment for intangibles 88 Purchase of property, plant and equipment 89 Proceeds from disposal of property, plant and equipment 90 Landlord contributions received 91 Net cash used in investing activities 92 93 Cash flows from financing activities 94 Cash was provided by / (applied to): 95 Proceeds from non-current loans 96 Repayment of non-current loans 97 Share capital raised 98 Dividends paid to shareholders 99 Share issue costs 100 Net cash from / (used in) financing activities 0 -3,820 -33,114 10,159 46 -26,729 -147,502 4,772 -26,353 4,064 1,222 173,341 -63,905 3,658 - 16,628 4,220 961 -79,010 0 -1,663 -19,157 2,667 2,808 -15,345 10,388 -2,836 -28,184 8,384 0 -1,841 -20,620 12,398 0 -1,781 -22,406 4,355 -33,024 -10,063 -19,832 446,116 14,490 336,535 -358,487 286,650 -296,525 0 -6,562 451,716 -387,024 0 -23,700 -63 40,929 1,060 0 73 -15,968 -19,574 -17,127 -16,084 -17,700 -58 -39,710 93,869 -22,632 -2,739 99,249 0 0 -29,449 -2,637 -22,617 -14,835 101 4,824 -64,644 68,147 482 805 -28 98 10,140 1,575 770 0 70 70,390 4,621 227 10,140 1,093 1,457 -307 70,390 798 0 0 770 700 0 0 798 15,034 1,093 1,575 102 Net increase / (decrease) in cash and cash equivalents 103 104 Reconciliation of cash and cash equivalents 105 Cash and cash equivalents at the beginning of the period 106 Opening cash balances acquired on acquisition 107 Foreign exchange movements 108 Cash and cash equivalents at the end of the period 109 110 Cash and equivalents comprise: 111 Cash on hand 112 Cash at bank 113 114 115 Cash and equivalents comprise (in NZD): 116 New Zealand Dollars 117 Australian Dollars 118 United States Dollars 119 120 446 14,588 15,034 513 9,627 10,140 310 70,080 70,390 218 875 1,093 222 1,353 1,575 204 566 770 249 549 798 1,575 65,989 4,401 1,093 0 770 0 798 0 3,053 5,619 6,362 15,034 5,767 3,420 10,140 70,390 1,093 1,575 770 798 H 24-Feb-14 1 (a) 25-Feb-19 26-Feb-18 27-Feb-17 29-Feb-16 2-Mar-15 25-Feb-13 3 7 11 21 22 Restaurant Brands New Zealand Limited Common Size Balance Sheet Current assets Cash and cash equivalents Trade receivables Prepayments and other receivables Tax receivable Inventories Assets Held for Resale Total current assets Non-current assets Property, plant and equipment (net) Intangible assets Derivative financial instruments Deferred tax asset Total non-current assets Total assets Current liabilities Income tax payable Trade creditors Other creditors and accruals Provision for employee entitlements Deferred operating income Interest-bearing loans Derivative financial instruments Total current liabilities Non-current liabilities Provision for employee entitlements Deferred operating income Derivative financial instruments Interest-bearing loans current liabilities Total liabilities Equity attributable to shareholders Share capital Retained earnings Foreign currency translation reserve Share option reserve Derivative hedging reserve Total equity attributable to shareholders Total equity and liabilities 23 24 27 28 30 31 35 36 38 Total equity and liabilities 42 43 (b) 25-Feb-19 26-Feb-18 27-Feb-17 29-Feb-16 2-Mar-15 24-Feb-14 25-Feb-13 45 46 Restaurant Brands New Zealand Limited NOPAT NNE CSP NOA NNO CSE 47 48 49 50 51 (c) 25-Feb-19 26-Feb-18 27-Feb-17 29-Feb-16 2-Mar-15 24-Feb-14 25-Feb-13 54 55 Restaurant Brands New Zealand Limited NOPM NOAT RNOA NNEP Spread Flev Non-operating Return ROCE 56 58 59 61 () 25-Feb-19 26-Feb-18 27-Feb-17 29-Feb-16 2-Mar-15 24-Feb-14 25-Feb-13 62 63 Restaurant Brands New Zealand Limited WC/TA ROA ATO RE/TA MVE/TL Z-Score 65 66 67 69 (g) 25-Feb-191 26-Feb-18 27-Feb-17| 29-Feb-16 2-Mar-15 24-Feb-14 25-Feb-13 71 72 73 74 75 76 Restaurant Brands New Zealand Limited Current Quick Liabilities-to-Equity LTDebt-to-Equity Times Interest-Earned CFO-Debt FCF-Debt