GRAND PARADE INVESTMENTS LIMITED - Grand Parade Investments Limited Signs Exclusive Licence With Dunkin Brands International

Grand Parade Investments Limited Signs Exclusive Licence With Dunkin’ Brands International

GRAND PARADE INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1997/003548/06
Share code: GPL
(“GPI” or “the Group”)

Grand Parade Investments Limited signs exclusive licence with Dunkin’ Brands International

21 January 2016

The board of GPI is pleased to announce that they have signed an exclusive master franchise
agreement with Dunkin’ Brands International to develop two of the world’s most recognisable
brands, Dunkin’ Donuts and Baskin-Robbins, in South Africa with a right of first refusal (ROFR) to
enter Namibia, Botswana, Zambia and Mauritius.

Under the agreement, GPI will develop over 250 Dunkin’ Donuts restaurants and more than 70
Baskin-Robbins shops in South Africa, through both corporate-owned stores and franchised
outlets, with an initial focus on Cape Town and Johannesburg. The agreement also calls for the
introduction of Baskin-Robbins ice cream products to supermarket chains and convenience
stores in South Africa over the license period.

The Dunkin’ Brands International franchise agreement allows GPI to capitalise on its existing
experience in the management of quick service restaurants. It also affirms GPI’s strategy to
expand its food portfolio by investing in respected and market-leading brands.

Dunkin’ Donuts is one of the world’s leading coffee and bakery chains, with more than 11,500
outlets in 40 countries worldwide selling more than 1, 8 billion cups of coffee a year. Over 50% of
Dunkin’ Donuts global sales consist of coffee sales.

Baskin-Robbins is the world’s largest chain of ice cream specialty outlets known for its ‘31
flavours’ and creative range of frozen desserts. Currently there are more than 7,600 Baskin-
Robbins outlets in nearly 50 countries, serving over 300 million customers a year.

The board of GPI believes that partnering with such highly-respected global brands provides the
ideal platform to further establish the company’s food business and it plans to roll-out its first
Dunkin’ Donuts restaurant and Baskin-Robbins shop in the second half of 2016.

The exclusive Master Licence Agreement is for a 10-year period with an option to renew for
further 10-years.

GPI will invest R210 million over the next 10-years, which will be funded off its own balance
sheet and it does not expect to raise any third party debt related to this transaction.

This transaction will have a minimal impact on the earnings for the Group in the short term.
Conditions precedent

The agreement is subject to GPI’s receipt of approval from the Financial Surveillance Department
of the South African Reserve Bank.

Any reference to the future financial performance of GPI contained in this announcement has not
been reviewed or reported on by GPI’s auditors.

22 January 2016
Cape Town
Sponsor – PSG Capital (Pty) Ltd
Corporate Advisor – Leaf Capital (Pty) Ltd
Legal Advisors – Bernadt Vukic Potash & Getz Attorneys

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