Young & Co.'s Brewery, P.l.c. Class A · LSE:YNGA
Young & Co.'s Brewery, P.l.c. Class A — FY2012 Earnings Presentation
37 slides from Young & Co.'s Brewery, P.l.c. Class A's earnings presentation, 2012
Slide 1: Results Presentation
= RESU! ESULTS ‘—_< PRESENTATION —
Slide 2: Today's Agenda
Today’s Agenda Introduction ……………………………..Stephen Stephen Goodyear Financial Review ……………...………. Peter Whitehead Managed Houses – Young’s …………. Patrick Dardis Managed Houses – Geronimo ……..… Rupert Clevely Tenancies …………………………….... Stephen Goodyear Outlook and Prospects ……..……....... Stephen Goodyear
Slide 3: Highlights
Highlights • Strong results – Very good trading from existing estate – Continued benefit from Geronimo acquisition – Strong growth in hotel business • Ongoing investment in quality estate • Robust balance sheet with sound long term financing arrangements • 5.1% recommended dividend increase (15th co
Slide 4: Strategy
Strategy • Pure play, differentiated pub company – Well invested, premium end of the market estate based in London and South East – Quality, individuality and service – Strong St ffood d offering ff i - skilled kill d chefs/fresh h f /f h produce d – Recognised as Best Managed Pub Company (150+ site
Slide 5: Strategy: Active Estate Management
Strategy: Active Estate Management • Investment in high returning projects within existing, existing managed estate – Development opportunities – Refurbishment – Hotel expansion • Acquisition q of managed g houses,, either as bolt on packages or individual sites • Concentrating on an estate of fewer
Slide 6: Financial Review
ss Fe = FINANCIAL — (REVIEW ~~
Slide 7: Strong Results for 52 Weeks Ended 2 April 2012
Strong Results for 52 Weeks Ended 2 April 2012 +25.5% +33.6% +20.3% +21.2% +17.4% +17.8% +5.1% Operating Revenue PBT* EPS* Dividend profit* £179.0m £26.2m £21.3m 33.41p 13.93p * adjusted for exceptional items 4
Slide 8: Group Track Record
StrongResults Group Track Record 2012 2011 Change £m £m % Managed houses 35.26 29.23 +20.6 Tenanted houses 5.29 5.39 -1.9 Corporate services (14.38) (12.87) -11.7 Finance costs (net) (4 82) (4.82) (3 57) (3.57) -35 35.0 0 Adjusted profit before tax 21.33 18.18 +17.3 Discontinued item (1.12) 1.96 N/A
Slide 9: Group Results
Group Results 2012 2011 Change £m £m % Managed houses 35.26 29.23 +20.6 Tenanted houses 5.29 5.39 -1.9 Corporate services (14.38) (12.87) -11.7 Finance costs (net) (4 84) (4.84) (3 57) (3.57) -35 35.6 6 Adjusted profit before tax 21.33 18.18 +17.3 Discontinued item (1.12) 1.96 N/A 6
Slide 10: Like-for-like Sales
Like-for-like Sales Number Sales Change of sites £m % Managed – Young’s 115 118.6 +6.0 Tenanted 87 12.4 +0.6 T l Total 202 131 0 131.0 +5.5 55 M Managed d – Geronimo* G i * 25 35 3 35.3 +9 8 +9.8 *Geronimo *G i lik like-for-like f lik sales l are bbased d on th their i comparatives, ti some off whic
Slide 11: Operating Performance at Pub Level
Operating Performance at Pub Level 2012 Change 2012 per pub** Revenue £m % £K Managed 123.8 +7.4 1,032 Geronimo 41.2 N/A 1,413 Tenanted 13.6 -3.9 143 Total 178.6 +27.8 733 EBITDAR* Managed 38.1 +7.2 323 Geronimo 12.4 N/A 449 Tenanted 7.0 -1.9 73 Total 57.5 +24.5 241 Geronimo per pub statistics are b
Slide 12: Strong Cash Generation and Investment
Strong Cash Generation and Investment 2012 2011 £m £m Cash generated from operations 34.6 29.7 Interest and tax (10.1) (8.1) Dividends (6.5) (6.3) Free cash flow 18.0 15.3 Disposals p 7.0 3.3 Wells & Young’s receivable 5.1 - Capital expenditure (25 6) (25.6) (18 6) (18.6) Geronimo - (60.0) D Decreas
Slide 13: Investment in Period
Investment in Period Total: £25.3 million (2011: £18.4 million) By division By nature of spend Investment on recent acquisitions £4.7m Managed £8.0m Investment on existing g estate £11.5m Hotels £1.7m Purchase of Freeholds £9.1m Geronimo £6.1m Tenanted £1.1m Geronimo Freeholds £8.4m 10
Slide 14: Asset Backed Investment
Asset Backed Investment Valuation carried out by Colliers at October 2011 on an open market basis 242 pubs, of which there are 187 freeholds and 13 virtual freeholds London and South East focus with 186 pubs within Greater London Value of pub estate £502 8 million £502.8 Net asset per share £6.59 Ne
Slide 15: Pub Estate Profile
Pub Estate Profile April 2011 + - Transfers April 2012 Managed 122 1 (2) - 121 Geronimo 27 3 - 3 33 Tenanted 97 - (6) (3) 88 Total 246 4 (8) - 242 Out of the total of 242 pubs, there are 187 freeholds and 13 virtual freeholds (leases with > 40 years to run, with rents that are < £10K per annum) 12
Slide 16: Debt Structure
Debt Structure Longer dated committed facilities: • £30 million long term (March 2023) £50.0 million • £20 million medium term (March 2018) Medium dated committed facilities: • £50 million RCF (Dec 2015) £100 0 million £100.0 • £50 million term loan (Dec 2013 to 2015) Net debt £118.1 million % of de
Slide 17: Managed Houses - Young's
MANAGED. HOUSES YOUNG'S ~
Slide 18: Premium Young's Branded Estate
Premium Young’s Branded Estate • 121 well located and invested pubs and hotels • Strong performance – Revenue up p 7.4% ((LFL 6.0%)) – Operating profit up 8.3% (LFL 5.2%) – Hotels’ RevPAR up 10.7% at £48.85 • Invested £10 £10.4m 4m in estate; major work at – Plough (Clapham Junction) – Home Cottage
Slide 19: Design Format of the Plough
Design Format of the Plough 15
Slide 20: Liquor - Highlights
Liquor – Highlights • Liquor sales 6.0% up on last year and 5.0% on a like-for-like basis • Cask beer continues to outperform the market – Well positioned to benefit from resurgence – Diverse range of Wells & Young’s products – Local Hero range – Bringing new and younger drinkers into category • Int
Slide 21: Food - Highlights
Food – Highlights • Food sales 9.7% up on last year and 7.2% on a like-for-like basis • Now comprises 26.8% of sales • High quality, locally sourced and prepared in-house • British provenance at the core • “Serious casual” eating out • Succeeded with new concepts – Old Tom’s English cheese and ham w
Slide 22: Accommodation - Highlights
Accommodation – Highlights • Growing boutique hotel presence • RevPAR up 10 10.7% 7% at £48 £48.85 85 • Instant results from last year’s addition off 23 boutique b ti rooms att th the Al Alma (Wandsworth) • F h ten rooms b Further being i added dd d at Bull’s Head (Chislehurst) and 17 at Foley Arms
Slide 23: New Developments
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Slide 24: Managed Houses - Geronimo
MANAGED HOUSES— ‘/ GERONIMO~—
Slide 25: Integrated and Trading Well
Integrated and Trading Well • Strong underlying performance, and platform for growth – Revenue £41.2m – EBITDA £8.8m £8 8 – Operating profit £5.8m • Sales momentum continues – Total sales up 25.6%* – Like-for-like sales up 9.8%* • Unique q identity y and appeal pp * Based on Geronimo’s comparatives,
Slide 26: Contemporary Design
Contemporary Design • 33 high quality, well invested, food led pubs – 32* in London (15 now freehold) – One freehold pub in Surrey *Includes three airport concessions • Geronimo brings – Long term growth potential – Distinctive format that complements the Young’s estate – Expertise in concessions 20
Slide 27: Liquor and Food - Highlights
Liquor and Food – Highlights • Liquor sales 11.7%* up on last year – C t Customers trading t di up across the th bboard d – Continue to broaden the ale and lager o e offer • Food sales 5.6%* up on last year – Restaurant quality food at pub prices – Growth in all day food • Food accounts for 36 36.2%
Slide 28: New Sites
New Sites • Strong sales (£35.1K per week) from three new sites since opening p g – Lion & Unicorn, Kentish Town – Cow, Westfield – Stratford City last stop before the Olympics – Oyster Shed, City waterside • Transfers from Young’s – Half Moon, the iconic Putney music pub – King’s Ki ’ Arms, A Ch Ch
Slide 29: New Sites
New Sites
Slide 30: Tenancies
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Slide 31: Refocusing on a Smaller High Quality Estate
Refocusing on a Smaller High Quality Estate • Smaller estate will remain an important part of our strategy p gy g going g forward • Estate capable of profitable growth • Continues to generate strong cash flow • Six pubs sold at a profit of £1.3m, three transfers to managed • Disposal programme shoul
Slide 32: Tenanted Operating Highlights
Tenanted Operating Highlights • 88 traditional pubs • Like-for-like sales up 0.6%, total sales down 5.8% due to disposals • Like-for-like operating profit up 4.1%, down 1.9% in total due to disposals p • Average EBITDAR per pub of £73.0k • £1.1m invested in existing pubs Central London 9 City 2 Grea
Slide 33: Prospects
/ ‘PROSPECTS- ,
Slide 34: Current Trading and Outlook
Current Trading and Outlook • Difficult start to new year with poor weather conditions and strong comparatives – Total sales up 3.9% – Like-for-like sales down 2.0% • Well positioned to benefit from – Queen’s Diamond Jubilee – Olympic Games • 2012 trading will benefit from new pubs and full-year imp
Slide 35: Prospects
Prospects • Strong balance sheet enables selective acquisitions - improving pipeline i li off iinvestment t t opportunities t iti • Premium strategy and well-invested estate expected to drive superior like like- for-like growth • Focused on profitable growth with expanding managed pub operation, and
Slide 36: A Pure Play Pub Business
A Pure Play Pub Business • Managed pub focus: >80% of operating profit at outlet level • Premium strategy: focused on higher quality end of the market • Well located: London and South East focused pub estate • Well invested: p predominantly y freehold backed balance sheet • Strong financial position
Slide 37: London 2012 events calendar
The Boat Race . 7 | _ i : ODI 29 June - 10 July ODI 24 August - 12 September 7 Apeil Diamond Jubilee weed YT + ——— ir —— Im ‘ The Olympic Torch Relay 2-5 June yelp « sat Paralympic Games 18 Moy - 27 July re 7 Osu 28 August - 9 September Cricket - West Indi Euro 2012 ae Tests 17 May - 11 on 6 June -
Young & Co.'s Brewery, P.l.c. — FY2012 Earnings Presentation on 6ix