National Stock Exchange Of India Limited Listing Department Phiroze .

There are burgers. And then thereis the Whopper.Bringing the gourmet burgerexperience to Indian customers,Whopper is Burger King’s global powerbrand. Our flagship offering is uniquefor its size, quality, and taste. With aflame-grilled patty, combination ofsauces and multiple veggies, theWhopper is a seven-layer indulgentmeal on its own. The Whopper and ourvarious Limited Time flavour buildsare not only our signature offerings,but they also allow us to drive brandpremiumisation and increasedordering frequency.In FY 2020-21, we launched a newWhopper range. The reinvigoratedselection offers a new crunchiervegetarian patty, new juicier chickenpatty, and new sauces for more tasteand flavour. Additionally, to make oursignature Whopper more accessible,Junior Whoppers were launched atvery attractive price points, both invegetarian and chicken variants.The new Whopper range was launchedin India on national television. We alsoactivated 360-degree integratedCorporate OverviewStatutory ReportsFinancial Statements01-2627-8485-139marketing campaign communicationsto bring out how the Whopper wasnot comparable to a burger — it wasgourmet fare. Innovative campaignssuch as ‘It’s not a contest’ furtherhelped to drive the credentials of theWhopper. Our focused marketingincreased Whopper awarenessamong consumers to 53%, from4% pre-campaign.The Whopper launch campaign wasfollowed by trial offers. Volume salesof the Whopper beat all our targets inthis period. The limited time offeringof Twisted Whopper, which combinedsweet & spicy taste profiles in a uniqueWhopper experience, further added tothe taste excitement.Besides the Whopper, we havealso launched a new premiumportfolio made up of unique tastingburgers called The King’s Collection.Available in four favourite tasteprofiles — Cheese, Paneer, TandooriChicken, and Fiery Chicken —these never-seen-before gourmetburgers once again demonstrateour passion and our commitment tobring the best burger experience toIndian consumers.50%Increase in Whopper volumesales during the trial periodWhen it comes to indulging the taste buds ofmillennials, We are JUST GETTING STARTED.09

Burger King India LimitedAnnual Report 2020-21JUST GETTING STARTED.On BK App and Delivery DominanceBK India App willdrive customerengagement andloyalty for us.10

Features of BK AppOmni-channelOrderingBest OffersRewardingLoyalty ProgrammeIn-appEngagementsSince it was launchedin June 2020,the mobile apphas witnessedover 1 Milliondownloads andgenerated promisingrevenue growth.Corporate OverviewStatutory ReportsFinancial Statements01-2627-8485-139At Burger King India, we have beenquick to recognise the emergingconsumer preference for onlinedelivery. We were the first brandto partner with food deliveryaggregators, integrating with theirsystems since their inception.The integration of our customerplatforms with delivery aggregators,together with innovative deliverypackaging, has accelerated Brand“BURGER KING ” on Delivery Platforms.The app is enabling us to improveconsumer experience through deliveryefficiencies and rider tracking.At the same time, the intelligentapp understands consumer orderpatterns. Data analytics are helpingus to map consumer cohorts and drivecohort-based marketing campaignsfor higher conversions.We are now demonstrating thoughtleadership with the rollout of our newmobile app. Far lighter and faster thanthe average app, the BK India mobileapp has all the features to ensure aseamless online ordering experience.With a burger-industry-first loyaltyprogramme, every purchase on ourapp rewards the consumer withCrowns. Another unique elementof our mobile app is the inclusionof a gaming feature. Other aspectsinclude an omni-channel experience,be it for ordering in, dine-in, ortakeaway and exclusive offersthrough digital coupons. The appalso features electronic paperlessbilling and enables contactlessordering and payment.All these enhancements – be itimproving the app download speedor significantly decreasing its size,customer loyalty programme, best-inclass promotions, gaming experience,in-app feedback form – have beendesigned to address the usage needsof our millennial customers. The appalso seeks to engage our “super fans”,meaning frequent customers, and thusgive them more reasons to continuestaying with the brand.BK India App is justa few months old.And we are JUSTGETTING STARTED.11

JUST GETTING STARTED.On Profitable ExpansionOurs is a businessof scale andoperating leverage.265RestaurantsAs on March 31, 202112

Corporate OverviewStatutory ReportsFinancial Statements01-2627-8485-139700Restaurantsby December 2026Our target under the Master Franchiseand Development Agreement (MFDA)is to open at least 700 restaurants inIndia by December 2026.Expansion requires capital allocation,which is the most important financialdecision taken at Burger KingIndia. No restaurant, to date, hasopened without the personal visit ofour CEO. Since inception, we haveadopted a cluster-based disciplinedstore rollout strategy to ensureprofitable expansion.This discipline also encompasses theformat and size of our new restaurants,ensuring better payback and returnon investment. In the early phase ofour expansion, malls dominated; goingforward, the substantial focus willbe on growth through High Streetsand Drive-Thru Burger King outlets atnon-mall locations.We paused our expansion inFY 2020-21 due to the COVID-19uncertainty and will progresscautiously in FY 2021-22, gatheringpace in the following years. As weexpand and generate scale, operatingleverage will kick in, therebyexpanding our EBIDTA margins.Opening 700 stores will just be thefirst milestone; we will continue tostrive to deliver greater value forour Stakeholders.Burger King India expansion isjust getting started.13

Burger King India LimitedAnnual Report 2020-21JUST GETTING STARTED.On Margin and Operating Cash FlowOurs is a businessof degrees, grams,seconds and pennies.14

Corporate OverviewStatutory ReportsFinancial Statements01-2627-8485-139At Burger King India, we are focusedon the quality of growth, demonstratedby gross margin profile and expansion.Our gross margin expansion, in turn,is being driven by our disciplinedrestaurant expansion, productmix, and scale.This expansion also brings betteroperating leverage, led by rising storeEBIDTA and company EBIDTA, the keymetrics of our business performance.Our Gross Margin at64.68% is healthy,with plenty ofopportunity to grow.Our expansion strategy is focusedon optimising the supply chain andlogistics, and identifying the bestconsumer catchment areas. This issteadily bringing down fixed costs asa percentage of revenue. With no debtand a widening margin, our return onequity and return on capital employedwill improve, too.The path to improving margins at Burger KingIndia is just getting started.15

About UsIncorporated in 2013, Burger KingIndia Limited is the all-India masterfranchisee of the global BURGERKING brand. We have emergedas one of the fastest growinginternational QSR chains in Indiaduring the first five years of ouroperations, based on the numberof restaurants1. As ofMarch 31, 2021, we operated265 restaurants, including9 sub-franchised restaurants.Technopak Report dated November 20201

Burger King India LimitedAnnual Report 2020-21EXCLUSIVE NATIONAL MASTER FRANCHISEEAdvantages of the Master Franchisee ArrangementUnder the Master Franchise and Development Agreement(MFDA), we have exclusive pan-India rights to develop,establish, operate, and franchise Burger King brandedrestaurants in India. We also have sub-franchise rights,which gives us additional flexibility in growing our restaurantnetwork. Pursuant to the MFDA, we are required to developand open at least 700 restaurants by December 31, 2026.Further, the agreement gives us long-term franchisee rights,extending till December 2039. Operational efficienciesOur master franchisee arrangement enables us to use theglobally recognised brand name “BURGER KING ” to growour business in India. We do this by leveraging the technical,marketing and operational expertise associated with theglobal “BURGER KING ” brand. We also have the flexibilityto tailor our menu, promotions, and pricing to Indian tastesand preferences. Speedy rollout of national advertising campaigns Effective management of supply chain Easy tailoring of menu architecture, promotions, and pricing Leveraging the globally recognised “BURGER KING ” brandSHAREHOLDING PATTERNOur Company is promoted by QSR Asia Pte Ltd (QSR Asia),which is held by F&B Asia Ventures (Singapore) Pte Ltd(82.71%) and BK AsiaPac (14.52%)1.We came up with an IPO in December 2020, followingwhich the share of QSR Asia was diluted to 52.88% fromthe previously held stake of 85.38%. The remaining stake of47.12% was owned by the public.Shareholding as on March 31, 20211The shareholding pattern as on March 31, 2021, is as follows:BK Asiapac Pte Ltd.Others14.52%2.77%F&B Asia Ventures(Singapore) Pte Ltd.82.71%QSR Asia Pte Ltd. Singapore52.69%Burger King India Limited18Public/FI47.31%

Corporate OverviewStatutory ReportsFinancial Statements01-2627-8485-139Our Customer PropositionValue leadershipOffering quality products atattractive price points and awide entry-level menuVarietyWide range of burgers andother products such as wraps,rice, beverages, sides, snacks,shakes and desserts acrossdifferent day partsTaste advantageMenu built through extensivetaste testing while meetingBurger King global qualityassurance standardsFlame-grilling expertiseServing flame-grilled pattiesfor various burgers, for whichspecially designed patentedbroiler equipment is importedVegetarian optionsWide range of vegetarianofferings to cater to thelocal Indian palateOur Key StrengthsExclusive National MasterFranchise Rightswith favourable royalty fees (cappedat 5% of sales)Operational qualitythrough well-defined and standardisedprocesses that are consistent withBurger King’s global standardsStrong customer propositionenabling us to attract customers anddrive footfalls at our restaurantsPeople-centric operating cultureas a principal component of our abilityto enhance customer experienceEffective brand positioningtargeting the large and growingmillennial population in IndiaEffective technology systemsused in our customer interactions,restaurant operations, supplychain and in the managementof our businessVertically managed andscalable supply chainwherein we individually negotiate withand actively manage our suppliersWell-defined restaurant rollout anddevelopment processto identify locations and build outrestaurants quickly, consistently,and efficientlyExperienced, passionate, andprofessional management teamhaving significant experience in foodand beverage industry, retail andmajor FMCG brandsTop awards received from Burger King Corporation20192018APAC Operatorof the Year2018Global MasterFranchisee ofthe Year2018APAC Marketerof the YearAPAC MasterFranchisee ofthe Year2017APAC Marketerof the Year19

Burger King India LimitedAnnual Report 2020-21CEO’s MessageDear Shareholders,I hope that all of you are healthy and safe in thesetough times. My prayers for every family that hassuffered. My deepest gratitude to all the frontlinewarriors who have led without fear and servedthe country. I sincerely hope that India and theworld are soon fully inoculated, so that normal lifereturns. Despite all the challenges, I believe this, too,will pass soon.Let me take a minute to thank you allfor the phenomenal response given toBurger King India’s IPO. It has infusednew energy into my entire team —especially me — to continue on thepath that we had envisioned when wefirst introduced the Burger King brandto India. Shareholder Value Creationand Guest Delight are two of the mostimportant pillars of our business; weare committed to both as we continueour journey together.Values we live by: This being myfirst interaction with you, I wouldlike to share our Company’sthree core values: Hunger to grow Hard Work when no oneis watching and Humility to learnMy team and I are committed to thesecore values and will continue to raisethe bar on them.Business of scale and long-term growth:In FY 2013-14, we had put together aplan to build 700 restaurants. We hadinvested upfront to build and resourcea team and infrastructure to build20these 700 restaurants. As we continueto scale up, our restaurant expensesand corporate overheads will continueto be amortised, over growing numberof restaurants improving operatingcash flow. Being a young Company,our refurbishment and maintenanceexpenditure continues to be low;these are added advantages to cashgeneration. Ours is a scale businessand our plans are to build long-termvalue for our shareholders.As I reminisce through our journey toreach here today, there are certainstrategic pillars of Burger King Indiathat I would like to share.Burger King India Menu – (Veg Menu,Variety, Taste): We spent our first yearbuilding products. All the products,recipes, vegetables, sauces, andspices are sourced and made in India.We hired Indian chefs and conductedone of the largest taste-test ever doneby Burger King anywhere in the world.That is how the Burger King India Menuwas created. We continue to improveand respond to changing consumerneeds. As an example, we justlaunched a gourmet style, never-seenbefore, burger experience through ourKing’s Collection range.Value Leadership: At BurgerKing India, we are value leaders.People often confuse value withprice. Our philosophy is to providegreat tasting products with good sizeportions at value pricing. We recentlylaunched our Value Menu 2.0 — theStunner Menu. The Stunner Menuhas burgers, wraps, rice and anexciting new product called Volcano.Varied food formats with variedtaste options at value pricing is theUSP of this menu.Menu, Nutrition Transparency: Weconstantly endeavour to providehigh-quality and great-tasting food toour guests. Under the aegis of “Trustin Taste”, we are constantly working toreduce fat, sugar, and salt across ourfood and have set stringent targetsbeyond the prescribed norms. We arealso happy to announce that all ourfood is free from synthetic coloursand artificial flavours. We continueon this path to ensure that our foodis constantly evolving and our nexttarget is to make it free from allartificial preservatives.

Positioned with Millennials: Burger KingIndia is positioned with millennials,the largest population group inIndia. These younger consumersare generally characterised bygood taste and a high demand forquality, variety, and value for money.While the frequency with which theyeat out is the highest across all agegroups, they are also value consciousand are likely to prefer eating withfamily and friends.Brand Strength: At Burger King India,marketing has always been ourstrength. It is about being authenticat the same time being quirky.With a vision to make the Burger Kingbrand the most loved quick servicerestaurant (QSR) brand in India, weconnect with millennials throughour advertising and marketingcampaigns (both on television andsocial media), in-restaurant andpackaging, focusing on the millenniallifestyle and thoughts.Disciplined Growth: Following apause in restaurant expansion inFY 2020-21, because of thepandemic, we are again picking upspeed and are on track to deliver700 Burger King restaurants byDecember 2026. Deploying capital isone of the most important decisionsa CEO makes. You will see brandBurger King continue to grow witha disciplined, cluster-based andprofitable expansion strategy.We will continue to build 70% of ourBurger King restaurants each year inexisting clusters, taking advantageof economies of scale. Burger KingIndia will continue to expand its grossmargins, see operating leverage onfixed costs to generate high operatingcash flow as we scale up our business.Corporate OverviewStatutory ReportsFinancial Statements01-2627-8485-139Sustainability: Our sustainabilitymeasures include initiatives focusingon Food, Planet, and People &Communities. We are working towardssourcing 100% of our palm oil fromsustainable origins by the end ofcalendar year 2021. Further, withour initiatives on Plastic WasteManagement, we have reduced morethan 300MT of plastics from oursystem in the past couple of years andhave plans to introduce alternativesand be plastic-free. All our chickenproducts are antibiotic-free andare from cage-free birds. Our Friesvendors work with 2,500 localfarmers on a contract farming modelfor regular and sustainable supplyof potatoes, ensuring improved andconsistent realisation for farmersand also providing complete producetraceability.Community Initiatives: As a partof our efforts to support society,the Company has identified GirlChild Education and Support as akey initiative. We have an in-storefund collection programme and theproceeds are given to the non-profitorganisation, “Room to Read” for itsgirls’ education programme. At BurgerKing India, our female employeesproudly wear a shirt pin with theslogan: “QUEEN AT BURGER KING”.This reflects our investment in ourfemale employees, as we groom themprofessionally to take up higher rolesin the organisation.Lastly, I am highly optimistic aboutthe collective future of the country.We are currently engaged in two veryimportant initiatives to unlock valuefor our investors and guests. Let meshare them with you.Burger King India Mobile Application(“BK India App”) and Delivery: Weare in the process of relaunching arenewed, reimagined BK India Appthat will redefine guest orderingexperience. Our app will be theone-stop-shop for everything atBurger King India - exclusive menu,best offers, rewarding loyaltyprogramme and in-app engagements.We will continue building strongpartnerships with food aggregators.We were the first international QSRon aggregator platforms and wecontinue to work closely with them togrow the category.Burger King Café: As India opens upand people get out of their homeswith new energy, Burger King Indiaplans to enter the 2,500 Crore cafémarket in India through Burger KingCafé. We are very excited about givingmillennial India a differentiated caféexperience, deep-rooted in our qualityleadership and differentiated menu.As we enter a new world, and anew India, I want to thank all ourstakeholders – Restaurant BrandInternational, Everstone, QSR AsiaPte. Ltd. (our Promoter), theGovernment of India, our supplypartners, our real estate partners,our guests, our agency partners, andshareholders of Burger King Indiafor trusting us, and my brilliant andhardworking team that continues tolive by our values of hunger, hard work,and humility. Thank you all.At Burger King India, we areJUST GETTING STARTED.Yours Sincerely,Rajeev VarmanWhole-time Director and ChiefExecutive Officer21

Burger King India LimitedAnnual Report 2020-21Performance HighlightsFinancial HighlightsRevenue from OperationsGross MarginCompany EBITDA post IND AS 116 in Mn. in 1.89%4,944.543,781.2259.82%327.12,299.4881.3FY 17FY 18FY 19FY 20FY 21FY 17FY 18FY 19Earnings Per ShareNet Profit/Loss After Tax Per Share in Mn.FY 17FY 18FY 19FY 20FY 21FY 17FY 18FY 21FY 20FY 21FY 18FY 19FY 20FY 21(382.79)(1.44)(718.46)(2.87)(3.10)FY 19FY 20(765.70)(822.32)(4.87)(1,739.12)(5.47)Note: FY 17 and FY 18 figures are taken from restated financial statements for comparison purposeOperational HighlightsPresence in CitiesStore Count57582604524FY 1722SSSG (Same Store Sales Growth)26512.2%187FY 2012928FY 1888FY 18FY 19FY 20FY 21FY 17FY 1829.2%FY 19FY 20FY 21FY 19FY 21(0.3%)(35.0%)

Corporate OverviewStatutory ReportsFinancial Statements01-2627-8485-139Marketing Awards Won in the Last 2 YearsTrump PostsRahul Bose#LonelyNoMoreBlue ElephantBaby ElephantBaby ElephantBronzeTopical Advertising Socia

burgers and fake news/ real news; burgers and innovation; burgers and hashtags; burgers and culture. We are present in everything that millennials talk about. We also know that this generation is street-smart, clear in its choices, and wants the best value for its money. Therefore, we connect with millennials through our value leadership and