FAMOUS BRANDS LIMITED - Famous Brands Notification Of Covid-19 Precautionary And Preventative Measures Across All Operations

Famous Brands’ Notification Of Covid-19 Precautionary And Preventative Measures Across All Operations

FAMOUS BRANDS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1969/004875/06)
Share code: FBR
ISIN code: ZAE000053328
(“Famous Brands” or “the Company” or “the Group”)

VOLUNTARY UPDATE

FAMOUS BRANDS’ NOTIFICATION OF COVID-19 PRECAUTIONARY AND PREVENTATIVE MEASURES
ACROSS ALL OPERATIONS

The Board of Directors and management of Famous Brands have been vigilantly monitoring the Covid-
19 situation since the World Health Organisation (WHO) declared the outbreak a Public Health
Emergency of International Concern on 30 January 2020.

Across all our trading jurisdictions, we fully endorse the various governments’ decisive actions to
contain the spread and impact of the pandemic. Within our company we are committed to managing
business continuity and providing an uninterrupted service to our customers while safeguarding our
people and ensuring the well-being of the communities we trade in. As a business with a significant
footprint in our various markets we are very mindful of our responsibility to prioritise the safety and
good health of all our stakeholders.

In this regard the following measures have been instituted:

    -   A crisis leadership team comprising of the Group Executive Committee has been established
        to monitor and immediately respond to the situation as it develops. A phased crisis and risk
        management plan has been developed in terms of managing and mitigating events depending
        on their level of severity.
    -   An extensive communication programme has been implemented across our operations to
        ensure that all relevant educational information regarding the pandemic is distributed
        throughout the business on an ongoing basis.
    -   Strict protocols have been implemented in terms of social distancing, reducing non-essential
        domestic and international travel, and enabling remote working where practical.
    -   Maintaining food safety and hygiene is an integral part of the daily discipline in our business.
        Accordingly, we are accustomed to safeguarding our environments against bacteria through
        strong operational and hygiene protocols which comply with industry best practice. We will
        continue to implement our rigorous controls and intensify these regimes as appropriate.
    -   A support network is in place for our franchise partners in terms of minimising disruption and
        ensuring consistency of supply through our manufacturing and logistics operations.

IMPLICATIONS OF EMERGENCY LEGISLATION ON BUSINESS CONTINUITY

Overview
To date, the Group’s Supply Chain operations have not experienced significant disruptions. However,
commencing 1 March 2020 in the UK and 16 March 2020 in SA, there has been a notable slow down
in store sales activity.

Initial indications are that sales have deteriorated steadily over the first three weeks of March as
government measures take effect on restricting consumer activity. Those markets in which the virus
has been prevalent for longer have been most affected, including England, Ireland and the UAE. At
this point, there has also been a concerning decline in sales in SA with some temporary restaurant
closures locally, as well as in Mauritius and Kenya, due to the decline in trading volumes in those
specific markets.

South Africa
We anticipate that the measures legislated by the Co-operative Governance Ministry in SA, (18 March
2020), will have further significant implications for our Signature (evening dining) brands specifically.
The new legislation specifies that all bars, restaurants and shebeens which serve alcohol must either
refrain from serving alcohol from 18h00, or close between 18h00 and 09h00 the following day.
Furthermore, such establishments are not permitted to host more than 50 people at the same time.

In light of this legislation and the general impact of the virus on customer behaviour which has seen
reduced footfall in shopping centres and restaurants generally, we anticipate that our online and
delivery offering will experience higher than traditional levels of usage, and accordingly, measures
have been put in place to upweight our capacity in that regard. With regard to our intensified hygiene
protocols, we have also implemented a policy of no-contact delivery for orders paid online, in terms
of which our delivery drivers will maintain a practical distance when delivering orders and limit any
physical contact with customers. Our third-party delivery partners have committed to the same
protocols.

United Kingdom
In compliance with instruction issued by the government on Friday, 20 March regarding further
preventative measures in the hospitality industry, all GBK company-owned restaurants and Wimpy
franchised restaurants in the UK have been closed with effect from Saturday, 21 March. Selected GBK
and Wimpy restaurants will attempt to remain open to service the home delivery market, but the
viability of this option is unclear at this stage. Management will monitor the situation closely for both
operations.

CONCLUSION

Given the prevailing instability in our trading markets, it is difficult to project with accuracy the impact
of the pandemic on the business. However, the Board and management anticipate that trading over
the coming weeks will become increasingly difficult and will undoubtedly result in significantly
reduced like-for-like sales.

Across our business we will continue to enforce the necessary disciplines and protocols required to
curb and slow the spread of the coronavirus, taking guidance from the National Institute for
Communicable Diseases, the WHO and the Department of Health to inform our approach.

Stakeholders will continue to be updated as the situation develops.

The information on which this statement is based has not been reviewed or reported on by the
Group’s external auditors.

23 March 2020
Midrand

Sponsor
The Standard Bank of South Africa Limited

Date: 23-03-2020 10:05:00
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