Mitchells & Butlers plc · LSE:MAB
Mitchells & Butlers — Bass — FY2000 Earnings Presentation
22 slides from Mitchells & Butlers's earnings presentation, 2000
Slide 1: Richard North, Finance Director
RICHARD NORTH FINANCE DIRECTOR
Slide 2: Reporting Formats
9 BASS PLC Reporting Formats • All Post FRS 15 • UITF 24 - pre-opening costs treatment • 52 weeks (comparisons adjusted to 52 weeks) • Bass Brewers included in discontinued business
Slide 3: Bass Hotels & Resorts Operating Profit - Old Format
10 BASS HOTELS & RESORTS Operating Profit - Old Format US $m 99/00 *98/99 Growth Americas 252 199 26.6% EMEA 68 63 7.9% Asia Pacific 16 5 - Sub Total 336 267 25.8% Inter-Continental 223 200 11.5% One Offs 4 6 - FelCor 21 21 - Operating Profit 584 494 18.2% Average Average Exchange Exchange Rates Rat
Slide 4: Bass Hotels & Resorts Operating Profit - New Format
11 BASS HOTEL & RESORTS Operating Profit - New Format $m $m 99/00 99/00 *98/99 *98/99 Growth Growth Americas Americas Owned Owned and and leased leased hotels hotels 91 91 76 76 20% 20% Managed Managed & & Upscale Upscale franchise franchise 43 43 22 22 95% 95% NA NA Midscale Midscale franchise fran
Slide 5: Americas - Owned and Leased
12 BASS HOTELS & RESORTS Americas- Owned Owned and and Leased Leased • Operating profit up 20% • Acquisitions net of disposals contribute $12m • San Francisco modernisation costs reduce profit by $8m • UITF24 reduces profit by $6m • Strong RevPAR performances from comparable hotels ICH up 8% Crowne
Slide 6: Americas - Managed and Upscale Franchise
13 BASS HOTELS & RESORTS Americas - Managed Managed and and Upscale Upscale Franchise Franchise • Overall operating profit up 23% (pre Bristol) • Six months contribution from Bristol - $16m before goodwill amortisation of $4m • Strong RevPAR performances in North America ICH up 5% Crowne Plaza up 9%
Slide 7: NA Midscale Franchise
14 BASS HOTELS & RESORTS NA Midscale Franchise Holiday Inn Holiday Inn Express Change in number of rooms -0.5% +14.4% Increase in RevPAR +4.9% +6.6% Increase in Royalty Rates +0.15% pts pts +0.01% pts pts
Slide 8: EMEA - Owned and Leased
15 BASS HOTELS & RESORTS EMEA - Owned Owned and and Leased Leased • Overall operating profit up 8% • Acquisitions contribute $7m to profit • Modernisation reduces profit by $3m • Strong RevPAR performances ICH up 10% Crowne Plaza up 5% Holiday Inn up 9% • At constant exchange rates profits up by 19%
Slide 9: EMEA - Managed and Franchised
16 BASS HOTELS & RESORTS EMEA - Managed Managed and and Franchised Franchised • Overall operating profit up by 39% • Management / Franchise system increased by 32 properties • Strong RevPAR performances ICH up 8% Crowne Plaza up 12% Holiday Inn up 6%
Slide 10: Asia Pacific
17 BASS HOTELS & RESORTS Asia Pacific • Operating profit up by $7m pre SPHC • 9 months contribution from SPHC - $10m before goodwill amortisation of $4m • RevPAR ICH up 8% Other Brands down 0-2%
Slide 11: Inter-Continental - Results
18 BASS HOTELS & RESORTS Inter-Continental - Results US $m 99/00 *98/99 Growth Operating profit - actual 223 200 12% Operating profit constant exchange rates 237 200 19% RevPAR ($) 88.43 83.90 5.4% • Refurbishment reduces profit by $11m • Since acquisition profits up by 69% ** adjusted adjusted for
Slide 12: Bass Hotels & Resorts Operating Profit
19 BASS HOTEL & RESORTS Operating Profit $m $m 99/00 99/00 *98/99 *98/99 Growth Growth Americas Americas Owned Owned and and leased leased hotels hotels 91 91 76 76 20% 20% Managed Managed & & Upscale Upscale franchise franchise 43 43 22 22 95% 95% NA NA Midscale Midscale franchise franchise 194 194
Slide 13: Bass Leisure Retail Summary Results
20 BASS LEISURE RETAIL Summary Results £m £m 99/00 99/00 98/99 Growth Growth Ongoing Ongoing pub pub business business 277 277 269 269 3.3% 3.3% Ex-Allied Ex-Allied pubs pubs 73 73 -- -- Profit Profit from from prior prior year year -- 66 -- disposals disposals Total Total 350 350 275 275 27.3% 27.3
Slide 14: Bass Leisure Retail Results
21 BASS LEISURE RETAIL Results Growth on LY **Ongoing Ongoing Outlets (ave.) 2.7% Sales per outlet 1.1% Drinks sales 1.8% Food sales 10.7% Like for like sales - invested (1.0%) - uninvested (2.8%) Operating profit 3.3% ** excludes excludes Development Development Estate Estate
Slide 15: Bass Leisure Retail Ongoing Business
22 BASS LEISURE RETAIL Ongoing Business * Pub Level Pub Level Returns Returns**** Returns ** Returns** Overall 99/00 New Sites Restaurants 14.8% 17.3% Branded Bars 16.8% 26.2% Unbranded Pubs 15.5% - Total 15.3% 19.4% ** excludes excludes Development Development Estate Estate ** ** defined defined as
Slide 16: Bass Leisure Retail Development Estate
23 BASS LEISURE RETAIL Development Estate • 53 conversions complete at year end • 78 now complete; 60 ‘on site’ • £34m Capex in 1999/2000 (of which £15m for openings in 99/00) • Over 40% sales uplift on conversions • -7.4% LFL sales on unconverted estate • 600 trading weeks lost to closure during co
Slide 17: Britvic Soft Drinks Results
24 BRITVIC SOFT DRINKS Results • Competitive market • Volumes up 2.7% • Turnover up 0.9% • Profits up 9.5% to £46 million • Acquisition of Orchid all all figures figures on on 52 52 week week basis basis
Slide 18: Bass Brewers Sale
25 BASS BREWERS Sale • Sale completed unconditionally in August for £2.3 billion • £129m in operating profit in discontinued business • Profit on sale of £1.23 billion included in exceptional items
Slide 19: Bass PLC Year Ended 30 September 2000
26 BASS PLC Year Ended 30 September 2000 £m £m 99/00 99/00 98/99 98/99 Growth Growth Operating Operating profit profit 905 905 778 778 16.3% 16.3% Exceptional Exceptional items items 1,234 1,234 (112) (112) PBIT PBIT 2,139 2,139 666 666 Interest Interest (152) (152) (140) (140) Tax Tax (287) (287) (
Slide 20: Bass PLC Net Cash Flow 99/00
27 BASS PLC Net Cash Flow 99/00 £m £m 99/00 99/00 98/99 98/99 Operating Operating profit profit 905 905 824 824 Depreciation Depreciation 289 289 237 237 Working Working capital/Other capital/Other (69) (69) (49) (49) Profit Profit from from Associates Associates (11) (11) (16) (16) Trade Trade loan
Slide 21: 2001 Capex Allocation - £940m
28 BASS PLC 2001 Capex Allocation - £940m £m 700 700 600 600 600 600 500 500 400 400 300 300 300 300 200 200 100 100 40 40 00 BHR BHR BLR BLR Britvic Britvic
Slide 22: Bass PLC Balance Sheet
29 BASS PLC Balance Sheet £m Sept 00 Sept 99 Net debt 345 1,995 Shareholder equity 5,379 3,313 Market-cap gearing 6% 32% Interest cover (adjusted) 6.0x 5.5x