Unaudited condensed consolidated interim results for the six months ended 31 August 2014 Notice of interim dividend declaration number 40 and salient features Notice is hereby given

Unaudited condensed consolidated interim results for the six months ended 31 August 2014

Financial highlights

Revenue

+14%

20142013

R1.5

7 bi

llion

Operating pro�t

+19%

20142013

R303

mill

ion

Headline earningsper share

+18%

20142013

212

cent

sDividendsper share

+19%

20142013

155

cent

s

Earningsper share

+18%

20142013

212

cent

s

Net asset valueper share

+16%

20142013

1 30

6 ce

nts

Famous Brands Limited(“Famous Brands” or “the Group”)

Incorporated in the Republic of South Africa

Registration number 1969/004875/06

JSE Share code: FBR ISIN code: ZAE000053328.

Unaudited condensed consolidated interim results for the six months ended 31 August 2014 Famous Brands Limitedpage 1

Overview

The strength of the Group’s integrated business model is evident in the results reported for the period. While the front-end franchised operation delivered a satisfactory performance, reflecting reduced consumer spend across certain mainstream brands, the back-end Logistics and Manufacturing businesses recorded robust results, making a significant contribution to the Group’s overall improved results for the period.During the six months under review, management’s focus was on two key strategic interventions: institutionalisation of the Fit 4 Purpose business transformation model designed to optimise the Group’s relationship with its customers (franchisees) and consumers, and implementation of the Product Platform Expansion strategy, a major step-change initiative developed to grow the business outside of the Food Services Franchising arena into the greater leisure market. Fit 4 Purpose has already started to deliver substantial benefits and the Product Platform Expansion strategy, although still in the initial phases of the programme, is anticipated to secure the Group’s long-term growth ambitions.

FINANCIAL RESULTSGroup revenue increased by 14% to R1.57 billion (2013: R1.38 billion), while operating profit rose 19% to R303 million (2013: R254 million). The operating margin grew to 19.3% (2013: 18.4%). These improved results are primarily a function of enhanced contributions from the Logistics and Manufacturing operations and improved efficiencies and cost containment achieved across the entire business.Basic earnings per share (“EPS”) and headline earnings per share (“HEPS”) both improved by 18% to 212 cents per share. Diluted EPS rose 18% to 212 cents per share, while diluted HEPS grew by 17% to 211 cents per share.Cash generated by operations before changes in working capital increased by 17% to R318 million (2013: R271 million). Working capital absorbed R71 million, resulting in a net cash flow from operating activities of R162 million (2013: R164 million).Net cash outflow from investing activities of R60 million (2013: R43 million) was incurred primarily on supply chain expansion and upgrades, IT systems enhancement and acquisition of businesses and associated companies.There were no borrowings raised during the period and loans of R32 million were repaid. The Group’s net borrowings of R25 million (2013: R47 million) represent a low net debt/equity ratio of 2% (2013: 4%).

OPERATIONAL REVIEWSFRANCHISINGAs at 31 August 2014, Famous Brands’ global footprint comprised 2 461 restaurants. Combined revenue recorded by the Franchise Division, net of the United Kingdom business which is reported on separately, increased 15% to R311 million (2013: R271 million), while operating profit improved 10% to R183 million. System-wide sales across the total franchise network grew 9.6%, while like-on-like sales increased 3.8%. The Group opened 110 restaurants during the period.

SOUTH AFRICAThe Group’s franchised brands traded in a highly challenging and fiercely competitive environment. Under these conditions, it is testament to their best-in-class status that the Group’s brands generally retained their market share.System-wide sales, including new restaurants, rose 9.1% and same store sales increased 3.4%. While improved like-on-like sales were reported across many of the Group’s brands, those brands which delivered strongest growth are the ones catering for the upper-end of the LSM spectrum. This trend is a direct reflection of local economic conditions, in which middle and lower income consumers have experienced the greatest decline in disposable income.During the period 96 (2013: 53) new restaurants were opened across the South African network. In the second half of the year the Group plans to open a further 136 restaurants in its home market.

REST OF AFRICAThe Group trades in 16 countries in this region. System-wide sales reported by the division grew by 15.5%, while like-on-like sales increased 8.9%. This territory now contributes 8.6% (2013: 8.1%) of total franchise system-wide sales. Fourteen restaurants were opened during the period, and a further 32 are planned for the balance of the year, including Debonairs Pizza’s maiden entry into Angola. New restaurants were opened across the Group’s mainstream brand portfolio, with Debonairs Pizza’s footprint specifically, continuing to grow apace, driven by the sustained growth of the pizza category in the region.

Unaudited condensed consolidated interim results for the six months ended 31 August 2014 I Famous Brands Limitedpage 2

Significant progress has been made across the recently acquired Mr Bigg’s business in Nigeria, with the implementation of best operating practices and key business processes which will ensure improved fiscal discipline. In addition, a range of opportunities has been identified to enhance efficiencies and upgrade skills sets which will deliver good gains in the near future.

INTERNATIONALUNITED KINGDOM (UK)The Group’s UK operation delivered pleasing results. Revenue in Sterling was in line with the prior comparative period, while revenue in Rand terms increased 21% to R53 million (2013: R44 million). Operating profit grew by 88% to R8.8 million (2013: R4.7 million); the operating profit margin rose to 16.4% (2013: 10.6%). This division’s improved results are a function of management of the cost base and favourable foreign currency translation gains made during the period.Two new Wimpy restaurants will be opened in the balance of the current fiscal year.

MIDDLE EASTDuring the period the Group’s premium brand, tashas, opened its first international restaurant in Dubai, to popular acclaim from both patrons and prospective franchisees. In light of this favourable response, suitable opportunities to expand the footprint in this emirate will be explored.The Group will also make its maiden entry into Abu Dhabi in November 2014 with the opening of a Steers restaurant.

Supply chainFamous Brands’ integrated Supply Chain comprises its Logistics and Manufacturing businesses, which are managed and measured separately. In the review period both divisions reported strong results. Consolidated revenue increased by 13% to R1.20 billion, while operating profit rose 33% to R108.2 million. The operating margin was 9.1% (2013: 7.7%).

LOGISTICSFor the first time, this division exceeded the one billion Rand turnover milestone for a six-month period, reporting revenue of R1.04 billion (2013: R946 million), an increase of 10%. Operating profit rose 22% to R38 million. Despite above-inflation increases in input costs, including fuel, labour and toll fees, the business improved its operating margin to 3.7% (2013: 3.3%).These robust results are a reflection of management’s steadfast campaign to improve efficiencies and cost management in the operation. The significantly enhanced Centralised Planning Function and investment in strategic IT systems and business processes have delivered anticipated benefits, while the formation of six decentralised, fully accountable, Centres of Excellence has led to an intensified focus on profitability.The Group’s Owner-driver programme continues to gain momentum. The number of cases delivered by Owner-drivers increased to 40.14% from 37.74% in the prior period.

MANUFACTURINGThis division reported an increase in revenue of 33% to R597 million, while operating profit rose 40% to R70 million. The operating margin was 11.7% (2013: 11.1%). These strong results are attributable to a range of factors, most significant of which was the turnaround achieved at the Coega Cheese manufacturing plant from a loss-making position in the previous corresponding six months. There remains strong upside potential to grow this operation’s contribution to Group profitability. Additional factors underpinning this division’s strong results were improved management of utilities and integration of additional brand business into the Famous Brands’ Coffee Company, Choice Meats Company and Great Bakery Company operations.

RETAILSales of the Group’s retail products have consistently outperformed the sluggish growth experienced in the general retail sector, recording a 27% increase on the prior comparative period. Key to this improvement has been the continued focus on branded product innovation and differentiation, and the introduction of new line extensions.

Group overview (continued)


Subsequent eventIn September 2014 the Group announced that it had expanded its existing relationship with strategic alliance partner, Total South Africa, to introduce a new retail offering, in conjunction with Thrupps, to the upper-LSM metropolitan service stations in the petroleum supplier’s service station network. Each Thrupps site will be supported by a Mugg & Bean On-The-Move offering. The pilot Thrupps-Mugg & Bean model will open at an existing Total site in Senderwood, Gauteng, at the end of October.

ProspectsManagement anticipates that current trading conditions will persist for some time, and in the absence of a significant turnaround in the economy, all operating activities at the front- and back-ends of the business will be geared to capitalise on existing opportunities in the industry and across the operations. The Group’s Fit 4 Purpose model has been successfully bedded down and will continue to deliver strong results. Additionally, the Product Platform Expansion strategy will start to unlock value as suitable prospects are explored within the broader leisure sector.Despite constrained consumer discretionary income, management has high expectations for the forthcoming peak trading period. The foodservice sector will continue to grow, fuelled by the demand for convenience. Accordingly, aggressive promotional campaigns for the mainstream brands, supported by strong value and innovation propositions, will be implemented nationally and will peak over the November-December summer holidays. The Group’s brands are represented at all major consumer hubs across the country and are therefore well positioned to capture any available spend. By December 2014 Famous Brands’ total network will have exceeded 2 500 restaurants, further increasing the brands’ accessibility to customers.As reflected in these results, the integrated Supply Chain plays a vital role in underpinning the success of the brands and profitability of the business as a whole. Ongoing improvement in efficiencies in both the Logistics and Manufacturing operations will ensure that the back-end of the business continues to grow its significant contribution to the Group’s performance.

On behalf of the board

SL Botha KA HedderwickIndependent Chairman Group Chief Executive

Midrand22 October 2014

Notice of interim dividend declaration number 40 and salient featuresNotice is hereby given that an interim gross dividend of 155 cents (2013: 130 cents) per ordinary share, payable out of income, has been declared in respect of the six months ended 31 August 2014.The salient dates for the payment of the interim dividend are detailed below:Last day to trade cum-dividend Friday, 28 November 2014Shares commence trading ex-dividend Monday, 1 December 2014Record date Friday, 5 December 2014Payment of dividend Monday, 8 December 2014Share certificates may not be dematerialised or rematerialised between Monday, 1 December 2014 and Friday, 5 December 2014, both dates inclusive.In terms of Dividends Tax legislation, the following additional information is disclosed:• The local Dividends Tax rate is 15%.• The net local dividend amount is 131.75 cents per share for shareholders liable to pay the Dividends Tax (2013:

110.5 cents) and 155 cents per share for shareholders exempt from paying the Dividends Tax (2013: 130 cents).• No STC credits have been utilised.• The issued share capital of Famous Brands is 99 712 435 ordinary shares.• Famous Brands’ tax reference number is 9208085846.

By order of the board

K GinaCompany Secretary

Midrand22 October 2014


Condensed consolidated statement of profit or loss and other comprehensive income

Unauditedsix months

ended31 August

2014R000

Unauditedsix months

ended31 August

2013R000

%change

Auditedyear

ended28 February

2014R000

Revenue 1 571 682 1 376 948 14 2 825 979

Gross profit 685 215 582 468 18 1 227 396 Selling and administrative expenses (382 199) (328 828) 16 (661 879)

Operating profit 303 016 253 640 19 565 517 Net interest expense (323) (695) (3 212)Share of profit of associates 3 056 — 5 140

Profit before taxation 305 749 252 945 21 567 445 Taxation (85 623) (72 751) (161 985)

Profit after taxation for the period 220 126 180 194 405 460 Exchange differences on translating foreign operations* (4 810) 33 748 59 029

Total comprehensive income for the period 215 316 213 942 464 489

Profit after taxation attributable to:Owners of Famous Brands Limited 210 513 177 462 401 637 Non-controlling interests 9 613 2 732 3 823 Total comprehensive income attributable to:Owners of Famous Brands Limited 205 703 211 210 460 666 Non-controlling interests 9 613 2 732 3 823

Earnings per share Basic earnings per share (cents) 212 180 18 406 Diluted earnings per share (cents) 212 179 18 405

* This item may be reclassified subsequently to profit or loss


Primary (business units) and secondary (geographical) segment report

Unauditedsix months

ended31 August

2014R000

Unauditedsix months

ended31 August

2013R000

%change

Auditedyear

ended28 February

2014R000

RevenueFranchising and Development 298 976 260 712 15 537 817 Supply Chain 1 190 146 1 048 682 13 2 145 105

Manufacturing 596 631 450 237 33 1 010 541 Logistics 1 044 827 946 188 10 1 937 787 Eliminations (451 312) (347 743) 30 (803 223)

Corporate 719 672 1 355

South Africa 1 489 841 1 310 066 14 2 684 277 International (Rest of Africa and UK) 81 841 66 882 22 141 702

UK 53 432 44 071 21 91 916 Rest of Africa 28 409 22 811 25 49 786

Total 1 571 682 1 376 948 2 825 979

Operating profitFranchising and Development 173 908 158 370 10 324 925 Supply Chain 108 159 81 258 33 203 513

Manufacturing 69 889 49 770 40 126 663 Logistics 38 270 31 488 22 76 850

Corporate 1 457 347 1 248

South Africa 283 524 239 975 18 529 686 International (Rest of Africa and UK) 19 492 13 665 43 35 831

UK 8 767 4 656 88 12 872 Rest of Africa 10 725 9 009 19 22 959

Total 303 016 253 640 565 517

* The Retail business within the Supply Chain segment has been reclassified from Logistics to Manufacturing.


Condensed consolidated statement of financial position

Unaudited31 August

2014R000

Unaudited31 August

2013R000

Audited28 February

2014R000

ASSETS

Non-current assets 1 176 611 1 066 796 1 139 928

Property, plant and equipment 202 250 204 986 205 575 Intangible assets 910 936 849 567 870 344 Investments in associates 54 240 810 52 934 Deferred taxation 9 185 11 433 11 075

Current assets 568 622 572 492 552 911

Inventories 214 729 209 633 177 511 Taxation receivable 6 165 2 032 6 834 Trade and other receivables 339 751 290 033 277 867 Cash and cash equivalents 7 977 70 794 90 699

Total assets 1 745 233 1 639 288 1 692 839

EQUITY AND LIABILITIESEquity attributable to owners of Famous Brands Limited 1 281 891 1 102 751 1 224 365 Non-controlling interests 20 434 15 923 10 583

Total equity 1 302 325 1 118 674 1 234 948

Non-current liabilities 50 370 92 070 53 735

Interest-bearing borrowings — 32 500 —Deferred taxation and lease liabilities 50 370 59 570 53 735

Current liabilities 392 538 428 544 404 156

Trade and other payables 316 587 309 324 298 278 Non-controlling shareholder loans 30 142 22 926 29 344 Short-term portion of interest-bearing borrowings 32 513 84 920 65 000 Taxation payable 13 296 11 374 11 534

Total liabilities 442 908 520 614 457 891

Total equity and liabilities 1 745 233 1 639 288 1 692 839


Condensed consolidated statement of cash flows

Unauditedsix months

ended31 August

2014R000

Unauditedsix months

ended31 August

2013R000

Auditedyear

ended28 February

2014R000

Cash generated before changes in working capital 318 026 271 053 601 756 Increase in inventories (33 258) (41 881) (9 955)Increase in receivables (59 205) (37 422) (22 674)Increase in payables 21 321 40 367 24 432

Cash generated from operations 246 884 232 117 593 559 Net interest paid (323) (695) (3 212)Taxation paid (84 460) (66 950) (166 748)

Cash available from operating activities 162 101 164 472 423 599 Dividends paid (169 090) (142 650) (271 125)

Net cash (outflow)/inflow from operating activities (6 989) 21 822 152 474

Cash flow from investing activitiesAdditions to property, plant and equipment (14 881) (28 857) (44 070)Intangible assets acquired (1 644) (4 620) (7 492)Proceeds from disposal of property, plant and equipment 1 483 5 135 1 809 Proceeds from disposal of intangible assets 375 — 250 Proceeds on disposal of business — 274 —Net cash outflow on disposal of subsidiary — — (221)Net cash outflow on acquisition of business operations — (14 522) (5 500)Net cash outflow on investment in subsidiary (47 033) — (9 022)Net cash inflow/(outflow) on investment in associates 1 750 (810) (47 794)

Net cash outflow from investing activities (59 950) (43 400) (112 040)

Cash flow from financing activitiesBorrowings repaid (32 487) (47 633) (100 827)Proceeds from issue of equity instruments of Famous Brands Limited 19 983 37 775 37 775 Cash contributed by non-controlling shareholders 799 10 643 17 061

Net cash (outflow)/inflow from financing activities (11 705) 785 (45 991)

Net decrease in cash and cash equivalents (78 644) (20 793) (5 557)Foreign currency effect (4 078) 6 851 11 520 Cash and cash equivalents at the beginning of the year 90 699 84 736 84 736

Cash and cash equivalents at the end of the year 7 977 70 794 90 699


Condensed consolidated statement of changes in equity

Unauditedsix months

ended31 August

2014R000

Unauditedsix months

ended31 August

2013R000

Auditedyear

ended28 February

2014R000

Balance at the beginning of the year 1 234 948 1 000 088 1 000 088

Group total comprehensive income for the period 215 316 213 942 464 489

Group dividends to shareholders (170 506) (141 880) (270 946)

Share-based payments 929 3 216 3 248

Issue of share capital 19 983 37 776 37 775

Non-controlling interest arising on business combination 1 655 5 532 508

Disposal of non-controlling interest — — (214)

Balance at the end of the period 1 302 325 1 118 674 1 234 948


Statistics and ratios

Unauditedsix months

ended31 August

2014

Unauditedsix months

ended31 August

2013%

change

Auditedyear

ended28 February

2014

Earnings per share (cents)

Basic earnings per share 212 180 18 406

Diluted earnings per share 212 179 18 405

Headline earnings per share 212 180 18 406

Diluted headline earnings per share 211 180 17 405

Dividends per share (cents) 300

Interim 155 130 19 130

Final 170

Ordinary shares (000)

In issue 99 712 99 242 99 242

Weighted average 99 440 98 662 98 942

Diluted weighted average 99 605 99 297 99 577

Operating profit margin (%) 19.3 18.4 20.0

Net debt/equity (%) 1.9 4.2 (2.1)

Net asset value per share (cents) 1 306 1 127 1 244

Dividend cover on headline earnings (times) 1.4 1.4 1.4


Notes to the condensed consolidated interim financial statements

Famous Brands Limited (the “company”) is a South African registered company. The condensed consolidated interim financial statements of the company comprise the company and its subsidiaries (together referred to as the “Group”) and the Group’s interest in associates.

1. Statement of complianceThese condensed consolidated interim financial statements have been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS), the presentation as well as disclosure requirements of IAS 34 Interim financial reporting, the SAICA financial reporting pronouncements issued by the Financial Reporting Standards Council, the JSE Listings Requirements, and the Companies Act of South Africa.

2. Basis of preparationThe condensed consolidated interim financial statements do not include all the information and disclosures required for the audited consolidated financial statements. The condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements. The audited consolidated financial statements for the Group as at and for the year ended 28 February 2014 were prepared on the going-concern basis and are available for inspection at the company’s registered office and on the Famous Brands website at www.famousbrands.co.za.The accounting policies applied in the presentation of the condensed consolidated interim financial statements are consistent with those applied for the year ended 28 February 2014, except for new standards that became effective for the Group’s financial period beginning 1 March 2014, refer note 3. The condensed consolidated interim financial statements were prepared on the historical cost basis, under the supervision of Norman Richards, Group Financial Director.

3. Changes in accounting policiesThe Group has adopted the following new standards and amendments to standards, including any consequential amendments to other standards, with a date of initial application of 1 March 2014:– Amendments to IFRS 10, IFRS 12 and IAS 27; and– IAS 32 Financial Instruments: Presentation.The adoption of the new standards listed above did not have a significant impact on the Group’s condensed consolidated interim financial statements.

Notes to the condensed consolidated interim financial statements (continued)

Unauditedsix months

ended31 August

2014R000

Unauditedsix months

ended31 August

2013R000

Auditedyear

ended28 February

2014R000

4. Earnings per share4.1 Reconciliation between earnings and diluted

earningsProfit attributable to equity holders of Famous Brands Limited 210 513 177 462 401 637 Adjustment for:After taxation interest receivable on future share placements 240 690 1 487

Diluted earnings 210 753 178 152 403 124

Earnings per share (cents)Basic 212 180 406 Diluted 212 179 405

4.2 Reconciliation between headline earnings and diluted headline earningsProfit attributable to equity holders of Famous Brands Limited 210 513 177 462 401 637 After taxation loss on disposal of property, plant and equipment (193) 357 433 After taxation remeasurements included in equity-accounted earnings of associates — — (128)

Headline earnings 210 320 177 819 401 942 Adjustment for:After taxation interest receivable on future share placements 240 690 1 487

Diluted headline earnings 210 560 178 509 403 429

Headline earnings per share (cents)Basic 212 180 406 Diluted 211 180 405

5. Related-party transactionsThe Group entered into various sale and purchase transactions with related parties, in the ordinary course of business, on an arm’s length basis. The nature of related-party transactions is consistent with those reported previously.


Directors and administrationNon-executive:SL Botha (Independent Chairman), CH Boulle, P Halamandaris, JL Halamandres,

P Halamandaris (Jnr), T Halamandaris, KL Shuenyane, BL Sibiya.

Executive:KA Hedderwick (Group Chief Executive), DP Hele (Chief Executive Officer – Food Services),

NS Richards (Group Financial Director).

Company secretary:K Gina

Registered office:478 James Crescent, Halfway House, Midrand, 1685

PO Box 2884, Halfway House 1685

Email: [email protected]

Transfer secretaries:Link Market Services (Pty) Ltd. (Registration number 2000/007239/07),

Rennie House, 19 Ameshoff Street, Braamfontein 2001,

PO Box 4844, Johannesburg 2000.

Sponsor:The Standard Bank of South Africa Limited (Registration number 1969/017128/06),

30 Baker Street, Rosebank 2196.

Website address: www.famousbrands.co.za

Documents

Unaudited condensed consolidated interim results for the six months ended 31 August 2014 Notice of interim dividend declaration number 40 and salient features Notice is hereby given