Mitchells & Butlers plc · LSE:MAB
Mitchells & Butlers — HY2021 Earnings Presentation
19 slides from Mitchells & Butlers's earnings presentation, May 2021
Slide 1: Half Year Results 2021
Half Year Results 2021 –1–
Slide 2: Tim Jones, Chief Financial Officer
Tim Jones Chief Financial Officer Half Year Results 2021 –2–
Slide 3: Income Statement (before adjusted items)
Income Statement (before adjusted items) HY 2021 HY 2020 £m £m Revenue 219 1,039 Operating costs (343) (931) Operating (loss)/profit (124) 108 Interest (67) (68) Pensions finance charge (1) (2) (Loss)/profit before tax (192) 38 Operating margin (56.6%) 10.4% (Loss)/Earnings per share¹ (31.8)p 6.5p ¹
Slide 4: H1 Sales Performance
H1 Sales Performance Balance Sheet Date December 2020 October 2020 April 2021 Around half the Growing Outdoor trading. estate re-opened restrictions on Initially 270 sites by mid-December trade until 2nd open increasing to but all closed from national Lockdown 730. 30 December Oct-20 Nov-20 Dec-20 J
Slide 5: Equity Raise and Refinanced Debt package
Equity Raise and Refinanced Debt package Capital raised to reduce level of debt and emerge from the crisis in a position of strength • Successful £351m Open Offer at 210p per share Equity Issue • 167m new shares issued • Funds received Friday 12th March 2021 • Funded short term working capital needs
Slide 6: Cash flow
Cash flow HY 2021 HY 2020 £m £m EBITDA before movements in the valuation of the property portfolio (57) 182 Non cash items 6 2 Operating cash flow (51) 184 Working capital movement (85) (34) Pension deficit contributions (13) (25) Cash flow from operations (149) 125 Capital expenditure (16) (82) Net
Slide 7: Balance Sheet and Liquidity
Balance Sheet and Liquidity Borrowings (£m) Capital Structure (%) £1,564m £1,472m £m Enterprise Value 1,752 1,584 (188) (112) FY19 HY21 Current + 5yrs Secured Debt Unsecured Debt Cash Net Debt Debt Pension Equity Note: Excludes IFRS16 liabilities Note: Assumes consistent enterprise value • Following
Slide 8: Summary
Summary • The first half of the year has been dominated by the impact of Covid-19 with sales down 79% due to mandated closure and restrictions • All costs minimised during periods of closure • The successful equity raise and associated refinanced terms now provides a strong platform of financial sta
Slide 9: Phil Urban, Chief Executive Officer
Phil Urban Chief Executive Officer Half Year Results 2021 –9–
Slide 10: First Half Overview
First Half Overview Chronology of restrictions on trade Oct-20 - Growing restrictions on trade (rule of six, table service, 10pm curfew, mandatory face masks) leading to the introduction of the Tier system Nov-20 - 4-week lockdown in England Dec-20 - Festive trade impacted by tighter tiered restrict
Slide 11: Impact on Hospitality
Impact on Hospitality • Hospitality has been severely impacted by the pandemic • 7% net decline in licensed premises versus March 2020* • Rent moratorium expires end of June 2021 • The pandemic has led to changes in consumer habits; • Reduced footfall in City Centres Estate composition • Increased p
Slide 12: Re-opening for Trading
Re-opening for Trading • Initially reopened 270 sites for Outdoor Trading on 12th April, which increased to 730 in the build up to the 17th May. • Average Guest review scores of 4.4 vs 4.1 pre Covid-19 • Encouraging consumer insight with 44% of adults visiting hospitality venues in the first week tr
Slide 13: People
People • Targeted recruitment drives in place to mitigate potential labour shortages due to; • Apprehension around re-joining the sector, until more certainty around future lockdowns. • Brexit • M&B Borrowed – allows team members to share shifts across sites • Management vacancies are at a normal le
Slide 14: Pillars
Forward planning Ignite Transformation Programme • 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 Culture Drive an Innovation Agenda Pillars Optimise the Balance of Brands to Achiev
Slide 15: Summary
Summary • Business strength remains with a strong portfolio of brands, 82% freehold and proven team • Portfolio of brands with high brand equity • Confident of strong finish to the financial year when restrictions are lifted • As before the pandemic, we plan to continue to de-gear and once again cre
Slide 16: Q&A
Q&A Half Year Results 2021 – 16 –
Slide 17: Supplementary Slides
Supplementary Slides Half Year Results 2021 – 17 –
Slide 18: HY 2021 – Outlet reconciliation
HY 2021 – Outlet reconciliation Total Managed¹ Franchised Total MAB Opening outlets (start of HY 2021) 1,667 71 1,738 Transfers (1) 1 0 Disposals (2) (1) (3) Acquisitions 0 0 0 Closing outlets (HY 2021) 1,664 71 1,735 Notes: 1. HY 2021 closing managed total includes 14 non-trading sites. 2. Lodges a
Slide 19: HY 2021 – Securitisation profile
HY 2021 – Securitisation profile – 19 –