Mitchells & Butlers plc · LSE:MAB
Mitchells & Butlers — Investor Presentation (October 2002)
8 slides from Mitchells & Butlers's investor presentation, October 2002
Slide 1: Tim Clarke
TIM CLARKE 4
Slide 2: Separation Rationale
Separation Rationale z Two powerful businesses z Limited synergies and stated expectation of separation z Retained corporate structure to finance cash acquisition during hotel downturn z Smaller declines in asset prices than in hotel cash flows z Potential acquisitions have not met our strict criter
Slide 3: Benefits of Separation
Benefits of Separation z Clear market valuations z Efficient balance sheets z Greater strategic flexibility z Consolidation opportunities z Sharper management focus 6
Slide 4: Retail: Overview
Retail: Overview z Retail is the largest UK managed pub and restaurant Leading operator: c.£1.5bn revenues Player z Significant scale benefits in supply chain, overheads and marketing z 2,089 selected locations High Quality z Average weekly takes of £14.2k; 3x industry average Estate z 3% of outlets
Slide 5: Retail: Brand development: Target segments
Retail Brand development: Target segments Residential Pubs Pub 42% Restaurants 27% Drinks Food led led Bars Restaurants 27% City Centre 4% Note: Percentages represent split of SCR UK outlets (excluding Bowling, Bowling, Hotels) 8
Slide 6: Retail: Management
Retail: Management z Appointed as Non- Non-Executive Director of Six Continents PLC in 1996 Chairman Roger Carr Age: 54 z Chairman of Chubb PLC; Non- Non-Executive Director of Centrica and Cadbury Schweppes z Joined Six Continents in 1990. Appointed to the Board in 1996 and and became Group Chief Ex
Slide 7: Capital Structure & Dividend
Retail: Capital Structure & Dividend z Efficient balance sheet Capital Structure z Net debt 30/09/03 estimated around £1.3bn* z Credit Rating BBB- / Baa3 z First year dividend of 8.5p** Dividend z Targeting real increases in dividend * At market value ** Post share consolidation 10
Slide 8: Trading Update
Retail: Trading Update z Sales up over 5%, AWT £14.2k z Margins defended despite £19m regulatory costs z Like-for-like sales: invested + 2.0% uninvested - 1.5% z 400 ex-Allied sites now converted 11
Mitchells & Butlers — Investor Presentation (October 2002) on 6ix