Chanticleer Holdings (HOTR) Investor Presentation

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Chanticleer Holdings (NASDAQ: HOTR) investor presentation.

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<ul><li> 1. NASDAQ: HOTR INVESTOR PRESENTATION NASDAQ: HOTR 2013 www.chanticleerholdings.com </li> <li> 2. NASDAQ: HOTR Safe Harbor Statement Statements in this presentation that are not descriptions of historical facts are forward-looking statements relating to future events, and as such all forward-looking statements are made pursuant to the Securities Litigation Reform Act of 1995. Statements may contain certain forward-looking statements pertaining to future anticipated or projected plans, performance and developments, as well as other statements relating to future operations and results. Any statements in this presentation that are not statements of historical fact may be considered to be forward-looking statements. Words such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," or variations of these or similar words, identify forward-looking statements. These forward- looking statements by their nature are estimates of future results only and involve substantial risks and uncertainties, including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new stores, successful completion of the Companys proposed acquisitions and expansion, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed from time to time in our reports filed with the Securities and Exchange Commission. There can be no assurance that our actual results will not differ materially from expectations and other factors more fully described in our public filings with the U.S. Securities and Exchange Commission, which can be reviewed at www.sec.gov. 2 </li> <li> 3. NASDAQ: HOTR Who We Are Chanticleers growth strategy is to expand the Hooters brand in emerging markets through partnerships and/or acquisition of Hooters Restaurants &amp; new concepts. The Company owns all or part of the Hooters franchise rights to develop and operate Hooters restaurants in South Africa, Hungary, 3 states of Brazil, and has joint ventured with the existing franchisee in Australia. We partner with highly experienced operators with aligned interests. Current Restaurants: South Africa (4), Australia (1), and Hungary (1). Announced Restaurants Expected to open before end of 2013: Pretoria, South Africa, Townsville, Australia. In August 2013 announced LOIs for existing Hooters location in Nottingham, England and for 5 restaurant chain American Roadside Burgers, Inc. Owner &amp; Operator of Hooters Restaurants Internationally Hooters of America (HOA): The brand and franchisor - over 430 restaurants operating within 28 countries with approx. $1 billion in system-wide revenue Chanticleer controls an interest of 3% in HOA Mike Pruitt sits on the Board of Directors of HOA 3 </li> <li> 4. NASDAQ: HOTR Territory Selection Criteria International Hooters territory with no existing franchisee or a territory to partner with current franchisee Strong local market dynamics compelling economic growth rates and demographics Partner with highly experienced and well capitalized restaurant operators in the local international market Identify restaurant locations with attractive leasehold economics Maintain a disciplined expansion strategy focusing on expected ROI and driving shareholder value *With our current territories, we believe HOTR could grow to have more than 75 Hooters locations 4 </li> <li> 5. NASDAQ: HOTR Roll Out Plan 0 2 4 6 8 10 12 2009 2010 2011 2012 2013 E PAST OPENINGS Durban, South Africa - December 2009 Johannesburg, South Africa - June 2010 Cape Town, South Africa - June 2011 Campbelltown, Australia - January 2012 Emperors Palace, South Africa - February 2012 Budapest, Hungary - August 2012 New Openings Expected Hooters Restaurant Open 5 </li> <li> 6. NASDAQ: HOTR Our Restaurants Cape Town, South Africa Emperors Palace, South Africa Budapest, Hungary Campbelltown, Australia HOTR Restaurant: Avg. Sq. Ft: 6,700 Avg. Capacity: 246 seats 6 Total Restaurants: South Africa (4), Australia (1), Hungary (1) Domestic Restaurant: Avg. Sq. Ft: 5,600 Avg. Capacity: 210 seats 6 </li> <li> 7. NASDAQ: HOTR Customized Menu Chicken Wings Tailored menus to appeal to local tastes Burgers Beverages Ribs &amp; Steaks Merchandise 7 </li> <li> 8. NASDAQ: HOTR South Africa Chanticleer owns the exclusive franchise rights to develop and operate Hooters in South Africa. Chanticleer formed a management company to operate all SA units. 4th restaurant in Emperors Palace Casino opened in mid-Feb 2012. Average net cash cost to open approx. $850k/unit. We expect to open our 5th unit in South Africa in the fourth quarter of 2013 in the Willows Shopping Center in Pretoria. Other prospective areas for new locations are the Cape Town Waterfront, Secunda and Bloemfontein. South Africa *10Q 6 months ended June 30, 2013 (unaudited) *Revenue: Gross Profit: $2,863,177 $1,751,796 61.2% Restaurant EBITDA $131,262 Estimated Market Opportunity - 20 restaurants 8 </li> <li> 9. NASDAQ: HOTR Australia Chanticleer formed a JV agreement with the existing Hooters franchisee to cooperatively develop Hooters restaurants going forward. HOTR owns 49% interest in the Campbelltown and upcoming second location. Our Campbelltown location is the third Hooters restaurant in Australia; and the first restaurant jointly developed with HOTR. The JV has entered into a lease agreement, for its 2nd location in Townsville. Construction has commenced and we expect it to open in the fourth quarter of 2013. Campbelltown *10Q 6 months ended June 30, 2013 (unaudited) *Revenue: Gross Profit: $1,204,412 $910,254 75.6% EBITDA: $(16,014) Estimated Market Opportunity - 15 restaurants 9 </li> <li> 10. NASDAQ: HOTR Hungary Partnered with Alex Hemingway and team to form Hungary-based Crown Restaurants to exclusively develop Hooters in Hungary. Alex Hemingway, CEO of Crown Restaurants, previously worked as President and Chief Executive of CEFG, owners and operators of Pizza Hut and KFC brands in Hungary, as well as 3 local national brands. During his career, he has operated over 180 units. First Hooters location opened in Franz Liszt Square, Budapest on August 27, 2012. Plan to roll out into other Eastern European markets. Budapest *10Q 6 months ended June 30, 2013 (unaudited) Revenue: Gross Profit: $419,988 $268,133 63.8% Restaurant EBITDA ($19,913) Estimated Market Opportunity - 3 restaurants Opened August 27, 2012 10 </li> <li> 11. NASDAQ: HOTR Brazil Partnered with Wings Brasil Ltda. to develop in 3 of the most populous states: Rio de Janeiro, Minas Gerais, and Espirito Santo Wings Brasil Ltda. currently manages 3 existing So Paulo Hooters Rio de Janeiro will host: o 2014 FIFA World Cup o 2016 Summer Olympic Games We expect to secure our first location in Brazil in Q3 2013 Estimated Market Opportunity - 40 restaurants 11 </li> <li> 12. NASDAQ: HOTR Operational Initiatives for 2013 Grow to a total of 10 Hooters restaurants in 2013 from 6 at 2012 year-end Achieve same store sales growth, increase consolidated gross margin to 62% from 58.2%, and increase profitability South Africa In Q4 2012, implemented price increases, updated menu offerings, and improved appeal of certain restaurants In Q1 2013, launched a Hooters Loyalty Card Hungary In Q1 2013, focus on reducing cost of sales, cost of labor, and increasing overall operating efficiency In Q1 2013, Hooters of Budapest launched its Girls of Budapest pictorial In the first half of 2013, Hooters of Budapest will be opening its outdoor patio for the first time. The outdoor patio adds 140+ seats, increasing seating by 56% to 390 seats; and in time for tourist season (April through October) 12 </li> <li> 13. NASDAQ: HOTR 0 2 4 6 8 10 12 2009 2010 2011 2012 2013 E Consolidated Restaurant Unit Growth 100% 50% 100% 66.7% 1 2 3 6 10 Total Restaurants 13 </li> <li> 14. NASDAQ: HOTR Consolidated Revenue Growth $1,476m $1,412m $1,728m $1,768m $1,975m $1,667m $1,666m FY 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 $1.476m 14 </li> <li> 15. NASDAQ: HOTR Consolidated Six Months Ended June 2013 Financial Results Reported revenue of $1.66 million and $3.67 million for the three and six months ended June 30, 2013, respectively, as compared to $1.72 million and $3.13 in the same periods of 2012. Earnings per share loss from continuing operations decreased to $0.18 and $0.39 per share in the three and six months ended June 30, 2013, respectively, as compared to a $0.54 and $0.58 per share in the same periods of 2012. Restaurants EBITDA was $75k and $111k for the three and six months ended June 30, 2013, respectively, as compared to $63k million and $100k in the same periods of 2012. 15 </li> <li> 16. NASDAQ: HOTR (unaudited) June 30, 2013 Dec 31, 2012 Cash and Cash Equivalents $ 160,550 $1,223,803 Other Current Assets $ 3,510,283 $ 806,572 Property &amp; Equipment, net $2,127,114 $2,316,146 Other Long-Term Assets $3,191,415 $3,299,910 TOTAL ASSETS $8,989,363 $7,646,431 Current Liabilities $4,602,935 $1,772,852 Other Long-Term Liabilities $ 243,863 $ 345,026 TOTAL LIABILITIES $4,846,798 $2,117,878 Stockholders Equity $4,142,565 $5,528,553 Total Liabilities &amp; Stockholders Equity $8,989,363 $7,646,431 Consolidated Balance Sheets 16 </li> <li> 17. NASDAQ: HOTR Why HOTR? Hooters is one of the most recognized iconic brands in the world. International markets offer strong organic growth and new expansion opportunities. Selective Partners: Highly experienced restaurant operators in the local markets with aligned interests. Chanticleer controls an interest of 3% in Hooters of America (HOA) and HOTRs CEO, Mike Pruitt, sits on the Board of HOA. Rapid Growth: Projecting to have 10 Hooters restaurants operating in 2013. With our current exclusive international territories, HOTR could grow to have more than 75 Hooters locations. On August 2, 2013, HOTR announced a binding letter of intent (LOI) for the purchase of the Nottingham, England Hooters restaurant for $3,150,000. On August 13, 2013, HOTR announced a non-binding LOI for the purchase of American Roadside Burgers, Inc., a Charlotte, N.C.-based chain of 5 restaurants, for 740,000 HOTR units (1 share of common stock and one five-year warrant, priced at $5.00). Great food, cold beer, sports, and pretty girls never go out of style. -Robert H. Brooks, Founder of HOA 17 </li> <li> 18. NASDAQ: HOTR NASDAQ: HOTR For More Information Contact: Mike Pruitt, CEO, mp@chanticleerholdings.com www.chanticleerholdings.com THANK YOU! 18 </li> </ul>