Mitchells & Butlers plc · LSE:MAB

Mitchells & Butlers — H1 FY2010 Earnings Presentation

21 slides from Mitchells & Butlers's earnings presentation, May 19, 2010

  1. Slide 1: Supplementary Information Market and Financial

    Supplementary Information Market and Financial Half Year Results – 19 May 2010

  2. Slide 2: Market Consumer Expenditure (£m)

    Market Consumer Expenditure (£m) 1984 to 2009 Total Total 80000 (Nominal) (Real) 5.8% 1.0% 70000 60000 7.5% 3.0% 50000 40000 30000 20000 4.1% -0.8% 10000 0 CAGR Actual 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Be

  3. Slide 3: Growth of Eating Out Demand

    Growth of Eating Out Demand % of total food spend made out of the home Increase 20% 3rd Income Decile 10% 2.0x (Just above min wage) 30% 20% 1.5x 6th Income Decile (Average – C1) 37% 27% 1.4x 9th Income Decile (Affluent – B) 1989 2009 Source: ONS (Family Spending Survey) 3

  4. Slide 4: Beer volume: on-trade vs off-trade

    Beer volume: on-trade vs off-trade UK beer market volume (barrels thousands) 40000 35000 30000 Barrels (thousands) 25000 On Trade CAGR CAGR 20000 (80-08) (01-08) -2.7% -4.3% 15000 +3.8% +2.8% Off Trade 10000 5000 0 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 0

  5. Slide 5: Movement in Beer Price: 1987 to 2009

    Movement in Beer Price: 1987 to 2009 300 250 On Trade Beer Price (rebased to 100) 200 150 Off Trade 100 50 0 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: ONS RPI index 5

  6. Slide 6: Food and drink market (£bn) – in and out of home

    Food and drink market (£bn) – in and out of home Household expenditure on all food* and alcoholic drink 2009 £ billions 95.2 70.6 Total = 165.8 100% Alcohol 14.3 80 Alcohol 29.0 60 Food & Soft Drinks 80.9 40 Food & Soft Drinks 41.6 20 0 In Home Out of Home *Includes soft drinks Source: Consumer Tren

  7. Slide 7: Drinks Purchases (£bn) – in and out of home

    Drinks Purchases (£bn) – in and out of home Household Expenditure on Total Alcoholic Beverages 2009 £ billions 17.2 17.6 8.5 Total = 43.3 100% 80 Out of Out of Home 11.0 Home 4.4 60 Out of Home 13.6 40 In Home 20 4.1 In Home 6.6 In Home 3.6 0 Beer Wine Spirits Source: Consumer Trends, ONS 7

  8. Slide 8: Pure alcohol volumes – in and out of home

    Pure alcohol volumes (thousand hectolitres) – in and out of home Total 2,138 1,709 1,097 240 5,184 100% Out of Home 253 Out of home Out of Home 211 80 Out of Home 1,145 129 60 In Home 1,456 Out of home 40 In Home 886 In Home 993 20 111 0 Beer Cider Wine Spirits Two thirds of alcohol consumed in the

  9. Slide 9: MAB volume performance vs the market H1 FY10

    MAB volume performance vs the market H1 FY10 MAB Estimated Volume Market Volume Growth (1) Growth (2) Food 3% -6% Wine & Soft Drinks Flat -1% Spirits -3% -11% Beer & Cider -3% -7% 1) Same outlet like-for-like growth 2) MAB estimates based on BBPA/CGA/ONS 9

  10. Slide 10: Revenue growth H1 FY10

    Revenue growth H1 FY10 Total Revenue up 1.3% Same Outlet like-for-likes up 1.8%* Uninvested like-for-likes up 1.3%* * Weeks 1-33 10

  11. Slide 11: Average main meal price

    Average main meal price (£) 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00 Crown Carveries Sizzling Pub Co Yates Walkabout Marstons 2 for 1 O'Neill's Ember * Excluding promotions Hungry Horse Wetherspoons Out of London Toby Carvery Source: MAB estimates, H1 FY 10 Spirit 2 for 1 Harvester

  12. Slide 12: Average Drink Price incl VAT

    Average Drink Price incl VAT Average drink price (£) Source: MAB estimates, H1 FY 10 12

  13. Slide 13: Same outlet like-for-like sales H1 FY10

    Same outlet like-for-like sales H1 FY10 H1 FY10* H2 FY09** Category Food 4.3% 4.1% Drink 0.3% 2.0% Other (2.3)% (8.4)% Segmental Residential 2.4% 3.3% High Street (0.2)% (1.0)% Total*** 1.8% 2.1% *Wks 1-33, includes Easter in both periods being compared ** Wks 34-52, excludes Easter from both period

  14. Slide 14: Uninvested like-for-like sales H1 FY10

    Uninvested like-for-like sales H1 FY10 H1 FY10* H2 FY09** Category Food 3.5% 3.5% Drink Flat 1.7% Other (2.4)% (8.4)% Segmental Residential 1.8% 2.8% High Street (0.4)% (1.1)% Total*** 1.3% 1.7% *Wks 1-33, includes Easter in both periods being compared ** Wks 34-52, excludes Easter from both periods

  15. Slide 15: Spend per Head H1 FY10

    Spend per Head H1 FY10 (incl VAT) 4 Food Drinks 0.5% 3 2.5% Average spend (%) 2 +3.0% LFL Price 1 1.1% +0.7% LFL Price 1 (0.4)% 2 15

  16. Slide 16: Retail H1 FY10

    Retail H1 FY10 H1 FY10 H2 FY09 Pub staff costs %age 24.9% 24.5% Net operating margin 15.2% 13.6% Expansionary capex £9m £37m Maintenance capex £59m £40m Disposals £21m £53m 16

  17. Slide 17: CROCCE and NOPAT H1 FY10

    CROCCE and NOPAT H1 FY10 28 weeks to 10 April 2010 £m CROCCE £m NOPAT EBIT 317 317 Depreciation/Amortisation 127 EBITDA 444 Cash Tax (at 25% of EBIT)* (78) (78) Cash Return 366 239 Average Net Operating Assets 4,367 4,367 Average Accumulated Depreciation 756 Average Revaluations (1,546) 10.1% (1,546

  18. Slide 18: Brands and operating formats H1 FY10

    Brands and operating formats H1 FY10 Residential Value Suburban City & Country 40% of pubs 28% of pubs 32% of pubs 32% of sales 34% of sales 34% of sales 111 Crown Vintage Inns Carveries 222 63 Toby 133 Metropolitan Harvester Sizzling Professionals 98 170 Premium 198 Country Dining 23 103 Other Loca

  19. Slide 19: Outlet Reconciliation H1 FY10

    Outlet Reconciliation H1 FY10 Total MAB Franchised Total Managed Closing Outlets (end FY 09) 1970 89 1881 Transfers 0 6 -6 Disposals -18 -4 -14 Acquisitions 0 0 0 Closing Outlets (end H1 10) 1952 91 1861 Average Trading Pubs 1853 Average Weekly Take £19.8k 19

  20. Slide 20: Securitisation Overview H1 FY10

    Securitisation Overview H1 FY10 Legal Balance Maturity Class at 10/04/10 Date Coupon Ratings A1N £200m Dec-30 £ Libor + 0.18% AA/AAA/A1 A2 £386.3m Dec-30 5.574% AA/AAA/A1 A3N $418.75m* Dec-30 $ Libor + 0.18% AA/AAA/A1 A4 £170m Dec-30 £ Libor + 0.23% AA/AAA/A1 AB £325m Dec-33 £ Libor + 0.24% A/AA/A3

  21. Slide 21: Financial Covenants Summary H1 FY10

    Financial Covenants Summary H1 FY10 Securitisation Restricted Payment Tests Covenant Actual Headroom (Relevant Year) Free Cashflow to Debt Service 1.3x 1.8x £84m EBITDA to Debt Service 1.7x 2.1x £65m Securitisation Covenants Covenant Actual Headroom (Relevant Year) Free Cashflow to Debt Service 1.1x

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