Signatory Name: Nandos Australia Pty Ltd

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Signatory Name: Nandos Australia Pty Ltd
   The question numbers in this report refer to the numbers in the report template. Not all questions are displayed in
   this report.

   Status: Completed

   The content in this APC Annual Report is hereby endorsed by the Chief Executive Officer, or equivalent officer of the
   organisation.
          Yes

5. Industry sector (please select 1 only):
          Brand Owner / Wholesaler / Retailer
          Packaging Manufacturer
          Waste Management
          Other - Commercial Organisation
          Community Group
          Industry Association
          Government
          Raw Material Supplier
          Other:

6. Industry type (please select 1 only):

          Food & Beverage
          Pharmaceutical / Personal Care / Medical
          Hardware
          Homewares
          Communications / Electronics
          Clothing / Footwear / Fashion
          Chemicals / Agriculture
          Fuel
          Large Retailer
          Tobacco
          Shipping Company
          Airline
          Other:

7. Please indicate your organisation's reporting period:
          Financial Year: 1 July 2012 – 30 June 2013
          Calendar Year: 1 January 2013 – 31 December 2013
Goal 1: Design

KPI 1: % of signatories with documented policies and procedures for evaluating and procuring packaging using the
SPGs or equivalent.

8. Does your company have documented policies and procedures for evaluating and procuring packaging using the
   SPGs or equivalent?

                     Yes                                            No

     Provide details of policies and procedures
     A document entitled "Nando's Australia Sustainable Packaging Policy v1.0" provides guidelines at the time of
     procurement for the sustainability of our packaging . Packaging is formally evaluated using a customised checklist
     version of the Sustainable Packaging Guidelines ("Nandos SPG Checklist v2.0").

9. Of the types of packaging existing at the beginning of the reporting period, what percentage had been reviewed
   using the Sustainable Packaging Guidelines (SPG) by the end of the reporting period?

                                    10   %

10. Have any new types of packaging been introduced during the reporting period?
                     Yes                                            No

11. If yes, of the new types of packaging introduced during the reporting period, what percentage have been
    reviewed using the Sustainable Packaging Guidelines (SPG) by the end of the reporting

                                         %

12. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 1

        Target: According to your Action Plan, what did you set    Actual: What did you achieve?
        out to do?

1.      Integrate SPG into packaging procurement policy.           We have developed an SPG checklist and are currently in
                                                                   the process of implementing it into our procurement
        (due end Sep 2012)                                         policy.

2.      Continue to develop, improve, and extend our use of        Moulded bagasse packaging has been successfully rolled
        bagasse materials, where possible, throughout our          out across all takeaway SKUs. Further trials on replacing
        primary packaging.                                         paper products with bagasse equivalents will be
                                                                   conducted through 2014.
        (due end Dec 2014)

3.      Apply SPG checklist to new packaging.                      Customised SPG has been be finalised and is currently
                                                                   being implemented. It will be applied to new packaging
        (ongoing through to 2015)                                  within FY 13/14.

13. Describe any constraints or opportunities that affected performance under this KPI

     Trials on replacing paper products with sugar cane bagasse equivalents have required further R&D; no specific outcome
     in current reporting period.
Goal 2: Recycling

KPI 3: % signatories applying on-site recovery systems for used packaging.

14. Do you have on-site recovery systems for recycling used packaging?
           Yes at all facilities/ sites
           Yes at some, but not all facilities/ sites
           No

15. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 3

        Target: According to your Action Plan, what did you set     Actual: What did you achieve?
        out to do?

1.      Review existing on-site recovery system for recycling       We are exploring the possibility of getting cardboard
        office paper and packaging waste.                           recycling figures from our company-owned restaurants
                                                                    and extrapolating these to achieve a figure for all the
        (due end Aug 2011)                                          franchise restaurants. A formal recycling initiative is
                                                                    under consideration for next year.

16. Describe any constraints or opportunities that affected performance under this KPI

     Quantification of waste streams from over 200 restaurants has proven to be very difficult.

KPI 4: Signatories implement formal policy of buying packaging made from recycled products.

17. Does your company have a formal policy of buying packaging made from recycled packaging?
                       Yes                                           No

     Provide details of policies and procedures (including names of policies/ procedures)
     We have developed a formal policy ("Nando's Australia Buy Recycled Policy v2.0") that applies to packaging other than
     bagasse (which is renewably sourced and biodegradable although not recycled or recyclable).

18. Is this policy actively used?
                       Yes                                           No

19. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 4

        Target: According to your Action Plan, what did you set     Actual: What did you achieve?
        out to do?

1.      Introduce a formal “Buy Recycled” purchasing policy for     Formal policy developed; currently being communicated
        overseas-sourced cardboard cartons.                         to a range of suppliers bringing in cardboard outers.

        (due end Aug 2013)

20. Describe any constraints or opportunities that affected performance under this KPI

     Nando's Australia is a franchise-based business with over 200 restaurants and multiple suppliers. Communicating our
     packaging policies and initiatives to all relevant parties has its challenges and is a continuing process.
Goal 3: Product Stewardship

KPI 6: % signatories with formal processes to work collaboratively on packaging design and / or recycling.

21. Does your company have formal processes in place for collaborating with other companies or organisations on
    improved packaging designs and/or recycling which aims to reduce or eliminate waste?

                       Yes                                            No

     Provide details of policies and procedures (including names of policies/ procedures)
     We have continued to work on the development of our packaging with two of the leading and innovative packaging
     suppliers in Australia. We currently use, and are further developing with our packaging partners, some of the most
     functional and sustainable products available for our take away food items.

     Through ideation sessions with our packaging partners, we develop concepts in line with the SPG and present packaging
     products to our franchise network for feedback before running market trials.

     All communications detailing the development pathways are retained.

22. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 6

        Target: According to your Action Plan, what did you set       Actual: What did you achieve?
        out to do?

1.      Establish communication with key suppliers re packaging       Development of our board-based bagasse is continuing,
        design & recycling.                                           in collaboration with our suppliers. This type of packaging
                                                                      increases the number of packing units per outer carton
        (due end Mar 2012)                                            though nest packing and reduces the usage of outer
                                                                      cartons.

2.      Eliminate use of inner liner inside pita bread cartons.       Pita bread carton inner liners no longer in use.
        Current configuration is 16 pks x 3 pitas with divider.
        Conduct travel tests to assess product protection.

        (introduction in all states in Jul 2011)

3.      Continue making design adjustments to selected bagasse        Our newly-developed board bagasse containers feature
        packaging items.                                              an integrated design that eliminates the need for separate
                                                                      lids and basis.
        (Adjustments to be implemented by Dec 2011)

4.      Further rationalise current takeaway bag range by             Although we have re-examined dimensions, the material
        optimising dimensions to reduce volumes consumed.             run in the trials was not appropriate and we need to
                                                                      conduct further trials during the next reporting period.
        (Adjustments to be implemented by Oct 2011)

5.      Research renewable resource material (possibly                Trails conducted on bagasse paper bag replacements
        bagasse) to substitute paper based products used in           have required additional R&D. Further trials will be
        primary packing bags.                                         conducted through 2014.

        (due end Dec 2012)

6.      Design inner divider/ liners for catering boxes to optimise   There is currently further work being conducted on
        space for packing multiple items in single container.         catering boxes, investigating replacement of paperboard
                                                                      with bagasse.
        (manufacture & distribution by Oct 2011)

7.      Continue transition from single-use cardboard crate to        Cardboard crates are now used only on interstate routes
        reusable plastic crate for poultry transport.                 when plastic crates cannot be recovered.

        (due end Jun 2012)

23. Describe any constraints or opportunities that affected performance under this KPI

     We have continued to redevelop bagasse takeaway packaging using board bagasse as opposed to our current moulded
     bagasse. Trials were conducted during the reporting period, but outcome (rollout) is expected only in the next reporting
     period.
KPI 7: % signatories showing other Product Stewardship outcomes.

24. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 7

        Target: According to your Action Plan, what did you set     Actual: What did you achieve?
        out to do?

1.      Increase percentage of restaurants using bulk cooking oil   Total bulk oil consumed during the reporting period was
        supply / collection system.                                 580,000 litres. Bulk oil distribution has reduced the
                                                                    number of 20 litre containers in our supply chain by
        (due end Dec 2015)                                          29,000 units.

2.      Conduct trial of recycled plain office paper.               50% recycled paper trial has been successful and this
                                                                    paper is now used to the greatest extent possible in our
        (due end Mar 2012)                                          corporate headquarters.

3.      Introduce a formal “Buy Recycled” purchasing policy for     We are continuing to use 50% recycled paper moving
        office paper (if trial successful).                         forward. This is reflected in our “Nando's Australia Buy
                                                                    Recycled Policy v2.0”, which covers office paper as well
        (due end Jul 2012)                                          as packaging.

4.      Increase proportion of food eaten in-house through        Initiatives to further reduce the takeaway component by
        restaurant design and menu refinement (with the objective enhancing our dine-in experience include:
        of reducing takeaway packaging.                           •           New Crockery
                                                                  •           New Menu
        (due end Aug 2014)                                        •           New touch points
                                                                  •           New Dine-In Restaurant Refurbishments
                                                                  •           Wine offer to enhance Dine-in experience

                                                                    This has resulted in an additional 2% improvement
                                                                    (compared with last year) in the ratio of take-away / dine-
                                                                    in customers, in favour of dining in.

25. Since the beginning of the reporting period, has your company had any other outcomes related to product
    stewardship?

                      Yes                                           No

     If yes, please give examples of other product stewardship outcomes
     We revised our goal of using 100% recycled office paper to using 50% recycled office paper, after a trial showed an
     unacceptable level of problems with our printers and copiers when using 100% recycled paper. During the current
     reporting period, we have been using 50% recycled paper.

     We have stopped printing and distributing Nutritional Information Cards and have directed customers to our Website to
     acquire the relevant information.

26. Describe any constraints or opportunities that affected performance under this KPI

KPI 8: Reductions in packaging items in the litter stream.

27. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 8

        Target: According to your Action Plan, what did you set     Actual: What did you achieve?
        out to do?

1.      Reduced primary packaging dispensed to customers.           New (board) bagasse design eliminates use of separate
                                                                    lids and bases across our entire take away packaging
        (due end Mar 2014)                                          range.

28. Describe any constraints or opportunities that affected performance under this KPI
Your Experiences

This section lets you share with us any achievements, good news stories and areas of difficulties in making progress against
your plan and the Covenant goals and KPIs.

29. Key achievements or good news stories
    Reducing our takeaway customer base through focusing on elevating the Nando's dine-in experience has become one of
    the company’s primary focuses. For the remaining takeaway portion of the business, we continue to work with two of
    Australia's leading and innovative packaging suppliers, to develop and use some of the sector's most functional and
    sustainable takeaway food packaging products.

30. Areas of difficulties in making progress against your plan, Covenant goals or KPIs
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