Mitchells & Butlers Plc · LSE:MAB
Mitchells & Butlers — Investor Presentation (February 2021)
15 slides from Mitchells & Butlers's investor presentation, Feb 22, 2021
Slide 1: Company Presentation
Company Presentation –1–
Slide 2: Transaction Overview
Transaction Overview New capital to reduce level of debt and emerge from the crisis in a position of strength Equity Issue • Up to £351 MM Open Offer at 210p per share • Fund short term working capital needs Reasons for Raise • Reduce level of unsecured debt and support securitisation • Resume inves
Slide 3: Summary
Summary • Our business was performing strongly pre-COVID • Impact of COVID has been acute on both us and the broader hospitality sector, but is temporary • Immediate actions taken to mitigate the impact of COVID-related closures and trading restrictions Main Themes • Previous experience of exiting l
Slide 4: Our Key Strengths
Our Key Strengths Track Record of Consistent Sales Outperformance Strong Deleveraging Progress Made Pre COVID Against the Market % Capital Structure (%) (1) 3.5% 4.3x 3.6x 1.5% 1.8% 1.9% 1.8% 1.0% 1.3% 0.8% 0.7% 0.4% 0.8% 33% 50% 9% (0.8%) 5% 57% 45% FY15 FY16 FY17 FY18 FY19 FY20 (to 15-Feb) FY15 FY
Slide 5: Our Group Strategy
Our Group Strategy Our strategy aims to deliver long-term sustainable shareholder value and is based on our Ignite programme of work, a wide range of management improvement initiatives to deliver progress across three strategic priorities 1 2 3 Build a More Balanced Business Instil a More Commercial
Slide 6: Investment Highlights
Investment Highlights 1 Large and Geographically Diversified Property Portfolio 2 Leading Operator in Attractive Managed Segment in Highly Resilient Pub Sector 3 Strong Portfolio of Brands and Formats 4 Well Positioned Against Impacts of COVID 5 Effective, High Returns Investment Programme 6 Highly
Slide 7: Operational Performance Pre COVID
Operational Performance Pre COVID Commentary Strong Performance Pre-Covid (£MM) 1.8% 1.3% 3.5% • Pre COVID the Group has been building a sustained track record of 2,237 Sales outperforming the broader market in terms of LfL sales growth 2,180 2,152 ‒ LfL sales growth in FY19 of 3.5% vs 1.5% of the o
Slide 8: Operational Performance During COVID
Operational Performance During COVID Summary of COVID Impact Management Actions to Mitigate Impact of COVID • UK retail and leisure businesses closed between 20 March 2020 and 4 July 2020, with • Over 99% of employees placed on furlough no sales generated in that period • Operating costs reduced to
Slide 9: Potential Scenarios
Potential Scenarios Base Scenario Reasonable Worst Scenario • Current Base Scenario assumes full closure of the entire estate, in both • Current Reasonable Worst Scenario assumes full closure of the entire the United Kingdom and Germany, until 11 April 2021 estate, in both the United Kingdom and Ger
Slide 10: The New Debt Package
The New Debt Package Bank Facilities Securitised Estate Quantum • £150 MM Club Deal Committed Revolving Credit Facility • £1.6 Bn securitised notes outstanding ‒ Maturity in February 2024 ‒ Amortising profile as below ‒ Equal participations of £50 MM from Barclays, HSBC and Santander ‒ Final maturit
Slide 11: Summary
Summary • Our business was performing strongly pre-COVID • Impact of COVID has been acute on both us and the broader hospitality sector, but is temporary • Immediate actions taken to mitigate the impact of COVID-related closures and trading restrictions Recap of Main Themes • Previous experience of
Slide 12: Q&A
Mitchetls“2) & Butlers Serving with pride, since 1898 Q&A
Slide 13: Legal Disclaimer
Legal Disclaimer THIS PRESENTATION IS NOT FOR DISTRIBUTION IN WHOLE OR IN PART (DIRECTLY OR INDIRECTLY) IN OR INTO AUSTRALIA, CANADA, JAPAN, NEW ZEALAND, THE REPUBLIC OF IRELAND, SOUTH AFRICA OR THE UNITED STATES OR ANY OTHER STATE OR JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION W
Slide 14: Legal Disclaimer (Cont'd)
Legal Disclaimer (Cont’d) None of the Company, Morgan Stanley & Co. International plc (“Morgan Stanley”), HSBC Bank plc (“HSBC”), Banco Santander S.A. (“Santander”) (together, the “Banks”) any of their respective directors, officers, employees, agents and consultants or advisers (“Associates”) have
Slide 15: Legal Disclaimer (Cont'd)
Legal Disclaimer (Cont’d) Morgan Stanley and HSBC are authorised in the United Kingdom by the Prudential Regulation Authority (“PRA”) and regulated in the United Kingdom by the FCA and the PRA. Santander is authorised and regulated by the Bank of Spain and subject to supervision by the Bank of Spain
Mitchells & Butlers — Investor Presentation (February 2021) on 6ix