Fuller, Smith & Turner P.L.C. Class A · LSE:FSTA
Fuller, Smith & Turner P.L.C. Class A — FY2005 Earnings Presentation
45 slides from Fuller, Smith & Turner P.L.C. Class A's earnings presentation, May 2005
Slide 1: Fuller, Smith and Turner PLC Preliminary Results
Fuller, Smith and Turner PLC Preliminary Results for the 53 Weeks Ended 2 April 2005
Slide 2: Michael Turner, Chief Executive
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 • Continuing steady growth across the estate
Slide 5: Corporate Progress
Corporate Progress • Beer Company profits up 5% with volumes up 2% • Good performance from Managed Pubs & Bars – First half affected by poor weather – Second half sales improved – Significant investment with repairs up £0.8m on last year • City LFL sales up 5% • Tenanted Inns profits up 5% • A good
Slide 6: Financial Highlights
Financial Highlights • Turnover up 5% to £147.5m (2004: £140.3m) • Normalised* profits before tax up 6% to £17.8m (2004: £16.9m) • Exceptional profit on disposals £0.2m (2004: £2.4m) • Profit before tax down 6% to £18.0m (2004: £19.2m) • Normalised* EPS up 7% to 53.13p (2004: 49.84p) • Basic EPS dow
Slide 7: Normalised Profits
Normalised Profits 20 20 17.8 17.8 18 18 16.9 16.9 15.6 15.6 16.4 16.4 16 16 14.9 14.9 14 14 £m £m 12 12 10 10 88 66 44 +6% -4% +10% +3% +6% 22 00 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005
Slide 8: Normalised EPS
Normalised EPS 60 60 53.13 53.13 49.84 49.84 50 50 45.59 45.59 42.69 42.69 40.07 40.07 share per share 40 40 Pence per 30 30 Pence 20 20 10 10 +5% -6% +14% +9% +7% 00 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005
Slide 9: Dividends
Dividends 20 20 18.46 18.46 18 17.31 17.31 18 15.17 16.12 16.12 16 16 15.17 14.38 14.38 share per share 14 14 12 12 Pence per 10 10 88 Pence 66 44 +7% +5% +6% +7% +7% 22 00 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005
Slide 10: Share Performance
Share Performance 25/5/05 220 200 180 160 140 120 100 80 60 40 2000 2001 2002 2003 2004 FULLER SMIT H 'A' FT SE ALL SHARE - PRICE INDEX Sourc e: DAT AST REAM
Slide 11: Paul Clarke, Finance Director
Paul Clarke Finance Director
Slide 12: Financial Strengths
Financial Strengths • Combined strengths in cash generation, high quality asset base and low gearing • Focus on earnings growth • Prudent accounting policies • Sensible company strategy has delivered significant shareholder returns
Slide 13: Key Figures
Key Figures 2005 2004 Net Debt £22.4m £17.0m Gearing 13.5% 10.7% Net Assets £166.3m £159.8m Net Assets Per Share £7.34 £7.02 EBITDA £28.3m £27.7m Interest Cover* 10.6x 9.7x Effective Tax Rate* 32.5% 32.5% ** Based Based on on normalised normalised profits profits
Slide 14: Profit Reconciliation
Profit Reconciliation 2004/2005 2005 2004 £m £m Normalised profit 17.81 16.86 Exceptional profit on disposals 0.24 2.37 Statutory profit 18.05 19.23
Slide 15: Total Capital Expenditure
Total Capital Expenditure 35.0 35.0 30.2 30.2 30.0 30.0 26.2 26.2 Fuller’s Fuller’s Inns Inns 25.0 25.0 18.3 18.3 17.5 17.5 £m 20.0 £m 20.0 Beer Beer Company Company and and Central Central 15.0 15.0 12.0 12.0 10.0 10.0 5.0 5.0 0.0 0.0 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005
Slide 16: IFRS conversion
IFRS conversion Key areas affected by IFRS for 2005/06: • Turnover • Pensions • Deferred tax • Share based payments • Dividends and preference shares
Slide 17: Simon Emeny, Retail Director
Simon Emeny Retail Director
Slide 18: Fuller's Inns Key Figures
Fuller’s Inns Key Figures March March Change 2005 2004 Turnover £101.4m £97.0m +5% Profit £15.9m £15.3m +4% EBITDA £22.5m £22.3m +1%
Slide 19: Retail Split
Retail Split March Net June 2004 Acquired Sold Transfers 2005 Managed Pubs & Bars 117 +4 -4 -1 116 Hotels 7 +1 8 Tenanted Pubs 113 +4 +1 118 237 +8 -4 +1 242
Slide 20: Managed Pubs & Bars Acquisitions
Managed Pubs & Bars Acquisitions • The White Horse, Harrow Tenanted • The Weyhill Fair, Andover Tenanted • The Fur & Feathers, Hook Tenanted • The White Horse, Pulborough Tenanted • The Antelope, SW1 Managed • The Harrow, EC3 Managed • The Viaduct, EC4 Managed • The Old Hatchet, Ascot Managed • Apsl
Slide 21: Acquisitions
Acquisitions FULLER'S|
Slide 22: Managed Pubs & Bars
Bc Managed Pubs & Bars FULLER'S|
Slide 23: Managed Pubs & Bars Trading Patterns
Managed Pubs & Bars Trading Patterns • Turnover for the year up 3.8% • Uninvested LFL sales up 0.4% – up 1.4% in the second half • Improved City trading – uninvested LFL sales up 5.0% • 23 pubs refurbished during the year
Slide 24: Managed Pubs & Bars Strategy
Managed Pubs & Bars Strategy • Focus on quality with a premium retail offer targeting discerning customers • Unique product range • Less exposure to smoking ban • Supported by tailored investment programme • A clear strategy that has resulted in: – cask ale sales up 4% – wine sales up 9% – food sale
Slide 25: Managed Pubs & Bars Investment Programme
Managed Pubs & Bars Investment Programme 2005 2004 £m £m Investment in existing estate: Capital 5.1 4.2 Repairs & maintenance 3.7 2.9 Total 8.8 7.1 Number of major projects 23 13 Trading weeks lost 65 68
Slide 26: Tenanted Inns
& Tenanted Inns FULLER'S|
Slide 27: Tenanted Inns Trading Patterns
Tenanted Inns Trading Patterns • Another good year for Tenanted Inns • Average turnover per pub up 3% • Average profit per pub up 5% • Four new pubs acquired during the year • Continued to invest with 17 internal and 26 external schemes in the year
Slide 28: Fuller's Hotels
Fuller’s Hotels FULLER'S|
Slide 29: Fuller's Hotels Trading Patterns
Fuller’s Hotels Trading Patterns • Strong performance – turnover up 10% – trading profits up 17% • Chamberlain, Brigstow and White Hart had their best year since opening • Continuing to invest with refurbishments at Sanctuary House and Mad Hatter
Slide 30: Fuller's Hotels Key Figures
Fuller’s Hotels Key Figures 2005 2004 Change No. of Rooms 513 458 + 12 % Room Rates £68.35 £68.97 -1% Occupancy 62% 61% +2% RevPar £42.50 £42.09 +1%
Slide 31: Fuller's Inns Summary
Fuller’s Inns Summary A better second half resulted in profits for the year up 4% • Improved performance from City outlets with LFL sales up 5% • Another year of substantial investment with 23 projects (2004: 13) and repairs up £0.8m • Continued steady progress from Tenanted Inns with profits up 5%
Slide 32: John Roberts, Beer and Brands Director
John Roberts Beer and Brands Director
Slide 33: Fuller's Beer Company Key Figures
Fuller’s Beer Company Key Figures 2005 2004 Change Turnover £68.9m £65.5m +5% Profit £8.2m £7.8m +5% EBITDA £9.7m £9.2m +6%
Slide 34: Beer Volumes
Fuller’s Beer Company Beer Volumes 2005 2004 Change ‘000 ‘000 brls brls ‘000 ‘000 brls brls Free On Trade 146.1 142.4 +3% Fuller’s Inns 86.4 86.2 level Off Trade 30.1 28.9 +4% Exports 12.5 11.1 + 12 % Total Beer 275.1 268.6 +2% Own Beer 197.9 194.6 +2%
Slide 35: Comparison with UK Market
Fuller’s Beer Company Comparison with UK Market Fuller’s UK Market * (UK only) Total Beer +2% -1% Total Ale +2% -6% Cask Ale level -6% Off Trade Ale +4% -4% ** Source Source :: BBPA BBPA
Slide 36: London Pride
London Pride • The leading premium ale in the country • Continuing to increase market share • New TV advertising campaign launched in the Autumn
Slide 37: London Pride advertising campaign
WHATEVER as TAKE DE. COMPARED TO” GETTING TO THE START LINE, Pa WON 237 Lost 302 DRAWN 106, FULLERS VONDOW PRIDE ayy WHATEVER You Bo, TAKE PRIDE, WHATEVER You Do, TAKE PRIDE
Slide 38: ESB – Champion Ale
ESB – Champion Ale • Successful re-launch in October 2004 –– volumes volumes up up 15% 15% in in second second half half • National media support –– October October to to December December 2004 2004 –– Campaign Campaign continues continues this this year year
Slide 39: Organic Honey Dew
Organic Honey Dew • UK’s leading organic beer • Excellent 2004/05 – bottled volumes up 33% – successful keg launch – incremental business • National media and sampling
Slide 40: Strength in Depth
Strength in Depth Autumn Autumn Festival Festival Spring Spring Festival Festival Other Other Seasonals Seasonals Brewery Brewery Tour Tour Packs Packs Bottle Bottle Conditioned Conditioned
Slide 41: New Product Development: Opportunity
New Product Development Opportunity • To create a fourth core cask brand • Attract new drinkers to Fuller’s beers – repertoire drinkers – lager drinkers • Compete in on and off trade markets
Slide 42: New Product Development: The Beer
New Product Development The Beer • Blonde Beer • Zesty, extremely refreshing and moreish • Tastes great both chilled and at cellar temperature • 3.9% abv (4.2% in bottle) • Premium pricing and positioning • Distinctive and intriguing brand name
Slide 43: Slide 43
Slide 44: Fuller's Beer Company Summary
Fuller’s Beer Company Summary A strong performance in an increasingly competitive market • Profits up 5% on volumes up 2% • Another good performance from the Wine Division with profits up 24% • Continuing Brewery investment programme • Brand portfolio stronger than ever
Slide 45: Prospects
Prospects • Businesses performing well and current trading on target • Continuing growth from investment and marketing programmes • Selective approach to acquisitions working well and increasing shareholder value • Breadth and balance of portfolio – core strength of our business
Fuller, Smith & Turner — FY2005 Earnings Presentation on 6ix