The

Way Forward
Business Accelera5on Plan
 THE GROUP IN BIOGRAPHY

The Beginning:

A casual discussion in a Food Court in a start-up mall in Riyadh

 THE GROUP IN BIOGRAPHY

The Beginning:

Food Court in a start-up mall in Riyadh

 THE GROUP IN BIOGRAPHY

The Beginning:

 THE GROUP IN BIOGRAPHY

The Beginning:

The Concept
 THE GROUP IN BIOGRAPHY

The Beginning:

24 m2 food court unit opened at 1800 hrs. on Sunday December 16, 2001 in Al-Faisaliah Mall
 THE GROUP IN BIOGRAPHY

Growing into a
Mainstream Brand:

Quick-paced learning curve of the founders

 THE GROUP IN BIOGRAPHY

Growing into a
Mainstream Brand:

Style & approach as the major founda5on of brand building

 THE GROUP IN BIOGRAPHY

Growing into a
Mainstream Brand:

High level of brand awareness amongst developers & retail leasing managers
 THE GROUP IN BIOGRAPHY

Growing into a
Mainstream Brand:

Next target: DUBAI

 THE GROUP IN BIOGRAPHY

Growing into a
Mainstream Brand:

First Outlet in Dubai at the Ibn BaZuta Mall in summer 2005

 THE GROUP IN BIOGRAPHY

Evolu<on into a
Group:

Next target # 1: Corporate Structuring

 THE GROUP IN BIOGRAPHY

Evolu<on into a
Group:

Next target # 2: Diversifica<on

 THE GROUP IN BIOGRAPHY

Evolu<on into a
Group:

Diversifica5on Concept # 1
 THE GROUP IN BIOGRAPHY

Evolu<on into a
Group:

Diversifica5on Concept # 2
 THE GROUP IN BIOGRAPHY

Evolu<on into a
Group:

Diversifica5on Concept # 3
 THE GROUP IN BIOGRAPHY

SeBng Market
Trends:
Leading the market trends

Crea5ng the industry niche

Shaping its development style

Copy brands in KSA

 THE GROUP IN BIOGRAPHY

SeBng Market
Trends:

First Authen<c Turkish Casual Dining concept in the region

ATG as a case study even in Turkey

 THE GROUP IN BIOGRAPHY

Feeling Global:

“We thought it was a Western brand”

 THE GROUP IN BIOGRAPHY

Feeling Global:

Next target: Franchising Model

 THE GROUP IN BIOGRAPHY

Feeling Global:

Commissioned Market Research

 THE GROUP IN BIOGRAPHY

Feeling Global:

Subsidiary company handling franchise opera5ons

 THE GROUP IN BIOGRAPHY

Feeling Global:

Current franchise ra5o: 25%

Target by 2025: 50%

Target by 2030: 67%

 THE GROUP TODAY

The Gallery of Facts:

•  The capital invested in LFC’s first branch opened in December 2001 was SR 360,000 and the annual sales in 2002
were SR 1.8 million. The total area of that unit remains the smallest amongst all the other LFC branches, a mere 24
m2.
•  It took the company 6 years to reach to SR 18 million Gross Annual Sales (reached in 2008) and with the opening of
the Dubai Mall branch, the income grew by 50% in the next year (2009)
•  Despite no addi5onal branches opened between 2012 and 2014, LFC achieved a steady 15% growth in those two
years averaging 7.5% every year
•  ATG’s first branch opened in March 2010 with a capital investment of SR 1.8 million and its first year’s gross
revenues was almost SR 3 million. The area of this branch was 220 m2 and based on the customer demand, it was
doubled in 2012 on the advice of the management of Granada Mall to 450 m2.
•  By the fourth year of opera5on, ATG grew into four branches occupying a leased area of 2000 m2 in 4 loca5ons
turning over almost SR 30 million
•  The Group’s Gross Annual Sales grew from SR 27 million in 2009 to almost SR 80 million in 2014 which is a
threefold growth. This growth was almost totally funded from the opera5onal revenues with very limited
dependency on bank loans or external cash injec5ons

 THE GROUP TODAY

The 2015 Impact:

•  A number of undesirable events
•  Rejec5on from Saudi Arabian General Investment Authority (SAGIA) for incorpora5ng
the Group as a shareholder in Sugar Sprinkles
•  Dubai: Two LFC branches got closed for renova5on
•  Dubai Mall branch for 3 months
•  DFC branch for over 18 months
•  KSA: Al-Rabea Plaza branch closed as the plaza was evacuated for building Riyadh
Metro
•  Biggest management team overhaul causing excessive cost burden
•  Irra5onal bank borrowing done by the new execu5ve management
•  Owner-Management disagreements leading to exit of top execu5ve staff

•  Major and 5mely interven5on from the founders resul5ng in damage control
measures being taken swikly
 THE GROUP TODAY

Exi<ng Partners:

•  Exit of one of the three equal shareholders in LBG in favor of managing his
interests in the Sugar Sprinkles investment

•  The minority shareholder in the Anatolia partnership, a Saudi Investor who had
short-term investment plans from the beginning of the partnership, also confirmed
his exit plans in Q4 2015

•  Exit agreements were signed in Q4 of 2015 and account reconcilia5ons and audit
on final accounts are on-going to finalize the monetary values of the exit deals and
lay down the terms and condi5ons of this exit
 THE GROUP TODAY

Where We Stand:

•  KSA is looking good!

•  The group con5nues to deliver sound performance at opera5ons, logis5cs

management, admin management and overall ability to meet targets

•  LFC received the 2015 “What’s on” Award for the Best Bri5sh Restaurant below
Dhs 400

•  In the process of restructuring and rescheduling of the bank loans taken in the
2015
 THE FUTURE OF LONDON BUSINESS GROUP

Short-Term Goals: (18-months star<ng 2017)

•  Debt Consolida5on
•  Jump start the pending projects and rolling out the new menus
•  Secure the planned Equity Buyout deal with an investor
•  Accelerate the execu5ve and mid-management recruitment process
•  Launch the centralized logis5cs opera5ons
•  Concept crea5on of the new subsidiary brands & launch of prototype units
 THE FUTURE OF LONDON BUSINESS GROUP

Mid-Term Goals: (2018-2020)

•  Ensure expansion plans

•  Ac5va5ng the Logis5cs Integra5on Scheme
•  Full implementa5on of the long-awaited ERP sokware
•  Boos5ng the performance of our Food Trading Division
•  LBG Franchising opera5ons to become a separate company opera5ng under the
Group's holding
•  Further development of the internal policies and procedures
•  Create and develop a R&D division
•  Start the ground and prep work for launching the group opera5ons in North America
 THE FUTURE OF LONDON BUSINESS GROUP

Long-Term Goals: (2020-2025)

•  Keep the on-going momentum in the franchising side of the business

•  Draking the Group’s CSR Policy
•  Encourage the R&D division’s engagement
•  Accelerate the growth of the opera5ons in North America
•  Paving the road for the next phase of growth
•  Evolving with the internal policies and procedures and governance schemes
•  Op5mizing the performance levels across the group’s various disciplines
THE FINANCIAL FORECASTS
THE FINANCIAL FORECASTS
THANK YOU