Fuller, Smith & Turner P.l.c. Class A · LSE:FSTA
Fuller, Smith & Turner P.l.c. Class A — H1 2005 Earnings Presentation
37 slides from Fuller, Smith & Turner P.l.c. Class A's earnings presentation, November 2004
Slide 1: Fuller, Smith and Turner PLC Interim Results
Fuller, Smith and Turner PLC Interim Results For the 6 months to 25 September 2004
Slide 2: Michael Turner, Chief Executive
LOGO Michael Turner Chief Executive
Slide 3: Agenda
Agenda Strategy Corporate Progress Key Financial Data Fuller’s Inns The Fuller’s Beer Company Prospects
Slide 4: Consistent Strategy
Consistent Strategy Fundamental objective to maximise shareholder returns by generating high quality, sustainable earnings • Long term focus • Culture of style not fashion • Passion for quality • Pride in our premium brands • Objective to grow the estate substantially, subject to sensible freehold p
Slide 5: Corporate Progress
Corporate Progress First Half • Beer Company performed well in a difficult market with profits up 8% on volumes up 1% • A strong first half for Hotels with turnover up 6% and trading profits up 14% • Significant investment and a poor summer held back profits in Managed Pubs & Bars • City trading str
Slide 6: Financial Highlights
Financial Highlights • Turnover up 2% to £73.0m (2003: £71.3m) • Profit before tax up 7% to £8.7m (2003: £8.1m) • Normalised* profits before tax up 2% to £8.2m (2003: £8.0m) • Basic EPS up 11% to 26.53p (2003: 23.82p) • Normalised* EPS up 3% to 24.39p (2003: 23.63p) • Interim dividend up 5% to 5.36p
Slide 7: Normalised Profits
Normalised Profits 9 8 7 8.0 8.2 7.7 6 7.2 6.4 £m 5 4 3 2 1 +9% -11% +20% +4% +2% 0 2000 2001 2002 2003 2004
Slide 8: Normalised EPS
Normalised EPS 30 25 Pence per share 23.6 24.4 20 20.8 19.4 15 17.3 10 5 +5% -11% +21% +13% +3% 0 2000 2001 2002 2003 2004
Slide 9: Interim Dividend
Interim Dividend 6 5 5.4 5.1 Pence per share 4 4.8 4.4 4.5 3 2 1 +8% +2% +6% +7% +5% 0 2000 2001 2002 2003 2004
Slide 10: Paul Clarke, Finance Director
Paul Clarke Finance Director
Slide 11: Financial Strengths
Financial Strengths • Strong and reliable cash generation • High quality asset backing • Very solid balance sheet • Good dividend cover
Slide 12: Key Figures
Key Figures Sept Sept 2004 2003 Net Debt £20.1m £21.6m Gearing 12.3% 14.0% Net Assets £163.3m £154.2m Net Assets Per Share £7.23 £6.78 EBITDA £13.2m £13.4m Interest Cover* 10.4x 8.8x Effective Tax Rate* 32.5% 32.5% ** Based Based on on normalised normalised profits profits
Slide 13: Profit Reconciliation
Profit Reconciliation Sept Sept 2004 2003 £m £m Normalised profit 8.2 8.0 Exceptional profits on disposal 0.5 0.1 Published pre-tax profit 8.7 8.1
Slide 14: Annual Capital Expenditure
Annual Capital Expenditure 35 30 25 30.2 Fuller’s Inns 26.2 £m 20 23.3 22.0 15 18.3 Beer Company 10 and Central 12.0 5 0 2000 2001 2002 2003 2004 2005 Projected Projected
Slide 15: Simon Emeny, Retail Director
Simon Emeny Retail Director
Slide 16: Retail Split
Retail Split March Net Additions November 2004 / Sales 2004 Managed Pubs & Bars 117 -2 115 Hotels 7 +1 8 Tenanted Pubs 113 +3 116 237 +2 239
Slide 17: Fuller's Inns Key Figures
Fuller’s Inns Key Figures Sept Sept 2004 2003 Turnover £50.1m £49.7m + 1% Profit £7.7m £8.1m - 5% EBITDA £10.8m £11.5m - 5%
Slide 18: Managed Pubs & Bars
ie = Managed Pubs & Bars uit ER
Slide 19: Managed Pubs & Bars Trading Patterns
Managed Pubs & Bars Trading Patterns • Planned major investment programme and poor summer held profits back • Uninvested LFL turnover down 1% • Improvement in City trading saw LFL sales up 3% • Food and wine continue to do well with sales up 5% and 10% respectively • 29 pubs refurbished in last 18 m
Slide 20: Managed Pubs & Bars Investment Programme
Managed Pubs & Bars Investment Programme Sept Sept 2004 2003 £m £m Investment in existing estate: Capital 2.7 2.4 Repairs & maintenance 2.2 1.4 Total 4.9 3.8 Number of major projects 16 6
Slide 21: Tenanted Inns
Y) = = no) 5) = = oS = 5) _
Slide 22: Tenanted Inns Trading Patterns
Tenanted Inns Trading Patterns • Average turnover per pub up 1% • Average profit per pub up 4% • Six new leases signed taking total to 53 • 16 refurbishments in the first half
Slide 23: Fuller's Hotels
Fuller’s Hotels
Slide 24: Fuller's Hotels Trading Patterns
Fuller’s Hotels Trading Patterns • Strong first half: – turnover up 6% – trading profits up 14% • Higher occupancy contributed to RevPar up 4% • Red Lion Hotel, Hillingdon Village, opened in May • Brigstow, Chamberlain and White Hart achieving record weekly sales and occupancy
Slide 25: Fuller's Hotels Key Figures
Fuller’s Hotels Key Figures Sept Sept 2004 2003 Number of Rooms 513 458 + 12% Average Room Rate £65.80 £66.67 - 1% Occupancy 64% 61% + 5% RevPar £42.27 £40.72 + 4%
Slide 26: Fuller's Inns Summary
Fuller’s Inns Summary • Overall profits were 5% down on last year • Summer trading suffered against a strong prior year • 16 major investment projects in Managed Pubs & Bars (2003: 6 projects) with repairs up £0.8m • City continues to improve with LFL sales up 3% • A strong first half for Hotels wit
Slide 27: John Roberts, Beer and Brands Director
John Roberts Beer and Brands Director
Slide 28: Fuller's Beer Company Key Figures
Fuller’s Beer Company Key Figures Sept Sept 2004 2003 Turnover £34.0m £32.9m + 4% Profit £3.5m £3.3m + 8% EBITDA £4.3m £4.0m + 8%
Slide 29: Beer Volumes
Fuller’s Beer Company Beer Volumes 2004 2003 ‘000 brls ‘000 brls Free On Trade 72.7 71.4 + 2% Fuller’s Inns 42.8 44.4 - 4% Off Trade 13.7 13.3 + 3% Exports 6.2 4.9 + 27% Total Beer 135.4 134.0 + 1% Own Beer 95.9 95.0 + 1%
Slide 30: Comparison with UK Market
Fuller’s Beer Company Comparison with UK Market Fuller’s (UK only) UK Market* Total Beer level - 2% Total Ale level - 6% Off Trade Ale + 3% - 5% Cask Ale - 1% - 7% ** Source Source :: BBPA BBPA
Slide 31: London Pride
Fuller’s Beer Company London Pride • Consolidated position as UK’s leading premium ale • New TV advertising campaign launched in September • 20% increase in marketing investment
Slide 32: Slide 32
Slide 33: ESB Re-launch
Fuller’s Beer Company ESB Re-launch • Champion Ale • New livery • National advertising campaign • New branded glassware
Slide 34: Range Development
Fuller’s Beer Company Range Development
Slide 35: Fuller's Beer Company Summary
Fuller’s Beer Company Summary • Good performance in an increasingly competitive market • Premium pricing policy maintained • Profits up 8% on volumes up 1% • Another excellent result for the Wine Division with profits up 24% • Investing in brands through re-launch of ESB and new London Pride televis
Slide 36: Prospects
Prospects • Strong marketing programme for beer brands • Ongoing investment in Managed Pubs & Bars to maintain premium position • Tenanted Inns continue to make good progress • A total of eight pub acquisitions scheduled for the year • Hotel performance remains strong • Strategy to enhance sharehold
Slide 37: Whatever You Do, Take Pride.
WHATEVER YOU DO, TAKE PRIDE.
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