Marc Caira, President & CEO, Tim Hortons Inc.

Transcription

1 Marc Caira, President & CEO, Tim Hortons Inc.

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3 Tim Hortons today 8 10 out of QSR coffees purchased from Tim Hortons ~ 42% of QSR traffic out of are aware of our brand 1M > visit Tim Hortons every day All figures apply to Canadian operations only 3

4 Well positioned The undisputed Canadian beverage leader TOTAL CAFFEINATED BEVERAGES % SHARE OF QSR SERVINGS All Other QSR % Cold Specialty Coffee % Hot Tea 76.0% Brewed Coffee 65.8% Hot Specialty Coffee Source: NPD Crest, 12 months ended Feb All trademarks, copyrights and other forms of intellectual property belong to their respective owners.

5 Tim Hortons today #1 traffic share at breakfast traffic share at morning and afternoon snacking traffic share in coffee and caffeinated beverages tied for #1 traffic share at lunch All figures apply to Canadian operations only 5

6 What is your biggest fear? COMPLACENCY! 6

7 STRATEGIC ROADMAP Anxious Consumers Value Conscious Low Growth Competitive Intensity Margin Pressure

8 Pivotal time for the restaurant industry Changing Tastes Generation Changes Connected Consumers 8

9 Menu evolution Nutrition, Health & Wellness Quality of Ingredients Bold New Flavours & Customization Green & Sustainable 9

10 Bold Different Daring

11 Key pillars of our strategy CANADA Lead, Defend & Grow U.S. A Must-Win Battle INTERNATIONAL Grow, Learn, Expand 11

12 Canada: Lead, Defend & Grow Ultimate Guest Experience flawless execution Defend the core: coffee, baked goods Capture new consumer demand spaces Alternative Channels Embracing Technology

13 Delivering the Ultimate Guest Experience Quality, Value Speed, Friendliness Differentiated Innovation Owner Presence and Engagement Restaurant Appeal and Experience

14 Defending our core starts with coffee Technology Brewing and roasting systems Operational Excellence Order accuracy Coffee consistency Speed of service Coffee Innovation Roast profiles and blends Milk-based beverages Coffee of origins

15 Becoming a food destination is a key growth driver Lunch Plus Hot breakfast sandwich Snacking & baked goods Health, nutrition and wellness Premium Bolder more intense flavors Healthier Options / Choices Leverage Mix freshness & convenience More In and Outs offers Traffic Ownable lunch proposition: Fresh, bolder flavours and significant moves in Health, Nutrition & Wellness Proprietary food platforms that transcend dayparts Attract growing number of people ( women ) bringing their lunch from home

16 Demand spaces offer growth and opportunity Charge Connect Crave Caffeine fix $1.3B Morning leisure $1.5B Health aware $2.9B Treat break $4.0B Breakfast on the run $1.6B Just feed me $2.6B Modest comfort $2.2B Family time $2.4B Satisfy craving $3.7B Total Market: $22.2B Source: Consumer Survey (August - September 2013) 16

17 Brand leverage and channel extension provide incremental opportunity Retail channels Roast & ground coffee Single-serve coffee Commercial channels Office Vending

18 Embracing Technology Enhance Consumer Experience Drive Consumer Behaviour WiFi, Mobile Payments, Digital Menuboards, Tims TV, DD Loyalty Cards

19 U.S.A : Must-Win Battle Picture should be inserted and cropped to fill entire red area

20 Drive AUV improvement across all dayparts 95% of population* is aware of Tim Hortons 79% of population* finds Tim Hortons convenient Focus on core to increase average unit volumes Work with well-capitalized partners to complement our efforts *in core and priority markets

21 We have repositioned our image as a Cafe & Bake Shop >50% of units

22 U.S. becoming a meaningful contributor to our financial performance Picture should fill entire page Famous for Cafe & Bake Shop AUV growth in current footprint Drive increased trial & loyalty Enhance returns by reducing capital deployment

23 International: Grow Learn Expand Kuwait Bahrain Qatar restaurants targeted restaurants targeted to open in the to open in Saudi Arabia UAE, Qatar, Bahrain, Kuwait & Oman UAE TOTAL NUMBER OF RESTAURANTS Saudi Arabia Saudi Arabia Oman (estimated) At year-end

24 International: Grow - Learn - Expand Our international path forward Picture should be inserted and cropped to fill entire red area Continue to learn and grow in the GCC Validate strategy in 2014 beyond the GCC Opportunities in various global markets Positioned to enter new markets in

25 1. Empower with clear accountability. 2. Commitments are promises - On time, On budget, Error free. 3. Make disciplined choices. 4. Be fast and nimble focused on flawless execution. 5. Embrace Innovation and have the courage to fail. 6. Foster cross-functional cooperation and ownership. We Are Here To Help Our Franchisees Win!

26 OUR SUPPLIERS We need you to help us grow. We need you to bring your Innovations to us first. We need to be better at bringing your ideas to market faster. We need to be better at communicating our requirement plans and decisions with you. We need to find ways to better REWARD our suppliers that help us grow. More at our July Convention in Toronto. 26

27 Rejuvenated Canadian growth engine Scalable, profitable U.S. business Established, growing international presence Enhanced capabilities and talent Above market-average total shareholder return (TSR)

28 Questions?