wostSio- PRESS RELEASE FOR IMMEDIATE CIRCULATION Westlife Development Ltd Reports Strong Sales Growth for Second Quarter 2016 WDL unveils Sales Growth of 8.4 per cent; Reports positive Comparable Sales of 1.7 per cent after eight quarters Delivers Operating EBITDA margin expansion Mumbai, November 6, 2015: Westife Development Limited (WDL), a company listed on the Bombay Stock Exchange (BSE: 505588), today announced its unaudited finandal and operating results for the quarter ending September 30, 2015. The results were taken on record by the Board of Directors at a meeting held in Mumbai WDL reported 20.9 per cent revenue growth of %2,260.9 milion Y-o-Y (year-over-year), aided by one time positive gain of 8234.0 million. This growth was led by the restaurant ‘operations ofits subsidiary, Hardcasle Restaurants Pvt. Lid. (HRPL), a master franchisee for west & south India operations of McDonald's Restaurants ‘Commenting on the financial results for the quarter ended September 30, 2015, Mr, Amit Jatia, Vice-Chairman of Westlife Development Limited said, “/ am encouraged by our operating ‘performance forthe quarter. Despite a weak consumer enixorment, we are happy o hace been the ‘rend and record strong top line sales fiom our strategies flowing through to revenve growth of 20.9 per cen, Ya-¥ and positive comparable sate of 1.7 per cent. This robust growth s a vote of cmfidence fram During the quarter we adveoncad on some ofthe hy elementof our long term strategy, impactful brand marketing coupled with a rage of organic initiauves; delivered trengh disciplined execution, wile Continuing fo reduce expenses ond expand operating margint which has contibuled to our growth Q2FVI6. We made meaningful headwoy on our long-term sales to improve profitability and shareholder value, hing delivered sutstanil gross margin expansion of ~580 bs in the second quarter.” EINANCIAL HIGHLIGHTS FOR FISCAL ENDED SEPTEMBER 30, 201: + Revenue growth of 20.9 per cent year-over-year {0 2, 260.9 million Operating EBIDTA stood at 351.6 million Profit After Tax stood at €140.0 million Cash Profit stood at€ 318.6 million Total Restaurant network at 216; V-o-Y gross additions at 27; 03 new restaurant Garvie Corporate Communicationswesthife Q2FV16 RESULT ANALYSIS: ‘+ WDL reported 20.9 per cent increase in total revenues for Q2FY16, aided by one time Positive gain of 8254.0 million, to 2,260.9 million rom 81,870.2 million Y-o-¥ riding on its restaurant expansion, Topline performance grovsth was driven by restaurant network ‘eXpansion in the existing & new Gties and by significant increase in accruals from new formats & brand extensions like McCaf€ and MeDelivery and innovative menu additions WDL expanded its restaurant base (0 216; ¥-0-V gross additions stood at 27: 03 new restaurant openings in Q2FY16 System-wide comparable sales (SSSGJ" grew 1.7 per cent, breaking the deadlock of negative comparable sales growth for the last eight quarters. Systemwide comparable sales stood at I.7 per cent as against (8.1) per cent in the same quarter of the previous year Relentless focus on reduction in food, paper and distribution cost along with increased lfciency in product management and menu pricing helped in expanding our gross ‘margins by ~580 bps Y-o-Y, as against the corresponding quarter in the previous fiscal Restaurant operating margin" expanded by ~1,400 bps Y-o-¥ on account of various cost ‘optimization initiatives Operating EBITDA in Q2FY16 stood at €351.6 million compared to 229.2 million Y-0-¥. representing a margin expansion from 1.6 per cent to 15.6 per cent General and administrative expenses in Q2FY16 increased marginally to 8114.1 million ‘compared to 2110.5 million V-o-Y asa result of our investment in people and resources + WDL reported cash and cash equivalents of 1,592.9 million in Q2FY16, WDL continued its efforts on fong term growth, offering relevant locations to its customers. ‘The Company added 08 new restaurants during the quarter taking the total count to 216 restaurants in the quarter ended September 80, 2015. 02 restaurants in Maharashtra and 01 in Telangana were added. The Company is well on wack deliver its stated goal of 175-250 WDL sustained its investment in actively building the Brand Extensions portfolio with Strategic investments in expanding the online capabilities for McDelivery, increasing its McCaté footprint and reimaging the restaurants to remain relevant tots customers. WDL added 07 McCafé locations in Q2FY16, taking the total count to 52 as agninst a total of 15 in the previous year. McCafé has been a been a key driver in optimizing the use of our restaurants a all hours of operation thereby providing a higher profit margin and adding value to the eustomess' experience. WDL achieved its stated goal of establishing 50-75 McCafe’s by December 2015 and is on track to double the base in the next 12-18 months across west and south India, WDL's marketing activities in the quarter were focused on brand building through the award winning brand campaign #KuchPalO Mine. Posiive consumer response to multiple menu, service and value initiatives contributed to the revenue growth. The introduction of exciting limited time menu offerings like-the Chilli Paneer Pockets in the affordability plavform and qarvi6 Corporate CommunicationsSinan OrcoMeFlinyteioeahed ini O88 uuyana Westlife helped us naigate the tepid conssmer environmen. Additonal. in the quarter, the Happy Meal benefited from song properties such as Minions, ‘reaffirming the Companys focus on the family business. Commenting further on the financial results, Amit Jatia said, “Going forward, we will continue 4 be focused om and commited to beter address the consuier needs. We al focus on becoming leaer ‘and more efficient, creating clue breaking and consemer meaningful marketing programs ule ‘investing m enhanced onganzaton capabilities that help deliver the plans. nthe quarters o come, we expect to improve our performance and financial pasion, and beat the forefton of eeicl recovery in 4 challenging economic environment. ~ends~ NOTE 10 THE EDITORS: Woitfe Drpaon Lsted und Hrd Resour lla wn Api March fn "There repertoire Soler 30, 2013 {HME FOLLOWING DEFINITIONS APPLY TO THESE TERMS AS USED THROUGHOUT THIS RELEASE. © Campari (S$S0) repre oles aa eae erate y the Cony, operon nn tien cs ‘cng th apoanly te, Sane of heron rent yb ner ce nt gn oman ‘eng, red cnscion antares The nae 3 eee sa trknt dy foe ee lesa shiping dey ated can incl compra le. Into, the ing bl a oh ecm ae, Resrat Opening Mag represen the alr of pany oper rents the eprint of thee returns icing ele fore deca nd cnr vrata saeco tel tsewesthife~ WESTLIFE DEVELOPMENT LIMITED Consolidated Financial Performance En mtn Particulars or the Quarter ended September 30, 2015, For the Quarter ended September 30, 2014 REVENUES Sales Other Operating Income” Other Trading Revenues TOTAL REVENUES ‘OPERATING COSTS AND EXPENSES Restaurant Operating Cost and Expenses Food & Paper ny Tae Payroll and Employee Benefits 221 24. Royal 743 790 ‘Occupancy and Other Operating Expenses 688.1 6542 ‘Generale Adwiniaive Expenses Tra ios ‘Other (neomeYVExpenses, (ne & (23.2) Other Trading Operating Gost and Expenses "TOTAL OPERATING COSTS AND EXPENSES. 19093 1,841.0 OPERATING EBIDTA 3516 292 Barcondinary Expensal™ Ta ie Financial Expense (terest & Bank Charge aT 2.1 Depredation 146.5 150 'PROEIT/LOSS BEFORE TAX Tao. a7, Tae a2 re PROFIT/UOSS AFTER TAX. Teor a2 [GasuProm Br as ose eeneon sent fees ores pein een cde Abautwest Devetopment: aes tion fl ot apa IN BA Ba TAA ag 8 Westfe Development Limited (85E:508533), focuses on puting up and operating Quick Service Resauranis (QSR) intnda through ts subsay Hardee Restaurats Pt Ld RPL), The Company operates chin of MeDonsls festurons in west snd ruth Inia, having» master fancleeselaonsip wih MeDonss Crporon US ‘eouph the lade’ Inansbsiiar,Marguee faves sacha Ari Inde Fund Le, Vontobe Fund and eee Line Asia Waster Fund (Singapore), Ward ery Fond, $l Mutual und snag hers ae staheelaes i WD ad {he company wl concn QrVISwestlife Abou Hondas Restourants: ardcastle Resaurants Pot Ld (RPL) Is 2 McDonald’ franchisee with sights co wn and operate McDonalds estas in Inds west and south markets. HRPLhas been a xn nti pat ofa snes ception n 1996, “ ROL serves approxiacely 185 millon customers annually tk 216 (a8 of September 30,2015) MeDonas eaorants across 26 ces the ste of Telangana, Gujarat Karmtaka, Maharastra, Taal Nad Kel and pes ‘of aya Pradesh. and provides vet mplement 10 over 7500 employees McDona's operas rough varus formats and brand extensions feuding standalone restaurant, cie-thrs's, 24/7, MeDelivery dessert Kshs. The ‘men features Burges Finger Foods, Wraps Mot nd old Beverages bees 3 wide range of dese Several ofthe MeDonai'sRestaran fat shouse Meta The plas ofthe MeDonal'ssystm ~ Quay, Serves, Cleanliness sn Value ~ ne evident at each ofthe resturans For further information plese contact: Ealavemapredonaincem ucorrog menace ‘Feaneb13o| Mong 32757 ‘Pomnsoissos|wesseanseaTs "iene Wee ete Le py iowa ig entra re race ean Shthare tar wero frat asennad tay a “rrr on san” hep ae Wl eo we tae fetontee ‘ihn rane evens Ta oreo stems eat) sone Stevia iprnt an tenner prs nt ay oe) sSrmceerees mtn iso ena hr a ‘ne rerio gna Ta oo ae ae oye Spas ‘yar ana a ofr fae enon. Refer tay aren et a ‘toprol apy aay ator) ye sera te wnIS Corporate Communications