Mitchells & Butlers plc · LSE:MAB
Mitchells & Butlers — H1 2009 Earnings Presentation
15 slides from Mitchells & Butlers's earnings presentation, May 21, 2009
Slide 1: Interim Results – 21 May 2009
Jeremy Townsend Finance Director Interim Results – 21 May 2009
Slide 2: Key Messages
Key Messages z Robust current trading z Cost pressure impacts first half profits z Capital investment continuing to earn good returns z Substantial debt reduction z Swap position settled and financed Well positioned to deliver continuing market out-performance 3
Slide 3: Closure of Retained Property JV Swap
Closure of Retained Property JV Swap z Swap originated from proposed property JV z Majority of swaps closed out in January 2008 z Resid iduall swap rettained i d to t hedge h d core debt bt z Core debt planned to be refinanced throug gh long term debt/securitisation z Discussion Disc ssion with ith
Slide 4: Financial Highlights
Financial Highlights 28 weeks ended 11 April 2009 Growth Revenue £1,024m 2.9% EBITDA* £209m (13.3)% Operating profit* £139m (17.3)% Net Interest* £95m (13.1)% Profit before tax* £44m (47.6)% EPS* 7 9p 7.9p (47 0)% (47.0)% Strong sales impacted by H1 cost pressures *Before exceptional items and IAS 3
Slide 5: Like-for-Like Sales Growth
Like-for-Like Sales Growth 1.5% 1.0% 1.0% Improving like-for-like sales trend 6
Slide 6: Operating Performance
Operating Performance H1 09 H1 08 28 wks £m 28 wks £m Revenue Pubs & Bars 512 508 0.8% Retail Restaurants 511 485 5.4% 3.0% SCPD 1 2 1,024 995 2.9% Operating Profit* Pubs & Bars 81 90 (10.0) Retail Restaurants 58 77 (24.7) (16 8) (16.8) SCPD - 1 139 168 (17 3)% (17.3)% * Before exceptional items and
Slide 7: Key Operating Statistics
Key Operating Statistics z Same outlet food sales up 2.5%* z Same outlet drink sales up 1.7%* z Gross margin down 2 2.0% 0% points z Outlet staff costs 24.5% of sales z Tight cost controls z Net operating margin down 3.3% points Good sales growth with strong operational control Note: all figures rel
Slide 8: Operating Profit Movement
Operating Profit Movement +7 Total acquired sites +11 Trading (4) Disposals £168m* (14) 2008 2009 (16) R Regulatory l t £139m* £(29)m (27) Food & Energy * Before exceptional items and IAS 39 movements 9
Slide 9: H1 09 Capital Expenditure
H1 09 Capital Expenditure z Focus on maintenance £40m spent on maintenance capex z Exp pansionary yCa pex £19m on newly acquired Whitbread sites £7m on conversions in core pubs ROI on last two years investments at 12% Good returns on capex 10
Slide 10: Cash Flow (a)
Cash Flow (a) H1 09 £m EBIT 139 Depreciation & amortisation 70 EBITDA 209 Working capital / non cash items (6) Maintenance capex (40) £77m E Expansionary i capex (37) Disposals 53 Additional pension contributions (15) Operating Cash Flow after Net Capex 164 11
Slide 11: Cash Flow (b)
Cash Flow (b) H1 09 £m Operating Cash Flow after Net Capex 164 Net Interest paid (82) Tax credits received 21 Issue of share capital 2 Net Cash Flow* 105 Exceptional Cash Flow Items £3m Continuing strong operating cash flows * Before total expenditure on exceptional items 12
Slide 12: Group Debt and Outstanding Facilities
Group Debt and Outstanding Facilities April 09 Sept 08 Feb 08 £m £m £m S Securitisation iti ti gross d debt bt (2 345) (2,345) (2 361) (2,361) (2 391) (2,391) Cash / other 120 140 76 Unsecured drawings (411) (514) (595) Net debt (2,636) (2,735) (2,910) Unsecured facility £550m £600m £700m Headroom +
Slide 13: Unsecured Facilities
Unsecured Facilities Facility Profile New Facility Previous Facility May-09 Dec-09 Jun-10 Dec-10 Jun-11 Nov-11 14
Slide 14: Financing
Financing z Net Debt : EBITDA EBITDA* 5.9x z Book Gearing** 71% z Interest Cover*** 1.5x z IAS 19 Pension deficit £39m z Fixed Asset Value £4.6bn Strong balance sheet and financial platform * MAT ** Net Debt / (Net Assets + Net Debt) 15 *** Excluding net finance income from pension
Slide 15: Summary
Summary z Strong sales performance in a challenging environment z Significant cost pressures mitigated by efficiencies and productivity z Conversions to our brands & formats continue to perform well z Swap settled to remove balance sheet risk z Continued strong operating cash flows Well positioned t