Slide 1: JD Wetherspoon PLC Interim Results 19 March 2021
JD Wetherspoon PLC Interim Results 19 March 2021
Slide 2: Background
Background • Average food hygiene score of 4.96 out of 5 • 758 pubs (out of 781) have a score of 5 • £6.1b of tax paid to the government in the last ten years by Wetherspoon, its staff and customers • £428m in bonuses and free shares in the last 15 years, equivalent to 55% of profits after tax • 242
Slide 3: Financial Summary
Financial Summary H1 H1 2021 2020 Var % 2020 2019 2018 20172 2016 2015 2014 2013 20122 2011 Revenue 431.1 933.0 -54% 1,262.0 1,818.8 1,693.8 1,660.8 1,595.2 1,513.9 1,409.3 1,280.9 1,197.1 1,072.0 (£m) Like-for-like sales -53.9% +5.0% -29.5% +6.8% +5.0% +4.0% +3.4% +3.3% +5.5% +5.8% +3.2% +2.1% (Los
Slide 4: Average Weekly Sales Per Pub (including VAT)
Average Weekly Sales Per Pub (including VAT) £000 49.5 48.0 50 46.5 44.4 45 41.7 39.0 40 37.4 36.0 34.0 33.2 35 31.1 32.3 30 25 20 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 H1 H1 2020 2021* *2021 uses average pub sales for trading weeks 3
Slide 5: Underlying Earnings Per Share (pence)
Underlying Earnings Per Share (pence)* pence 76.5 70.2 80.0 66.6 70.0 60.0 48.0 47.6 44.7 43.8 44.6 50.0 41.3 35.3 40.0 30.0 20.0 10.0 0.0 -10.0 -20.0 -30.0 -27.5 -40.0 -35.3 -50.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 H1 H1 2020 2021 *Underlying earnings per share are before exceptional
Slide 6: Like-for-like Performance
Like-for-like Performance H1 H1 % 2021 2020 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Bar -57.3 +4.2 -29.3 +5.8 +5.1 +3.1 +3.3 +1.2 +2.7 +3.8 +2.8 +1.7 Food -48.4 +5.6 -30.1 +8.3 +5.1 +5.7 +3.5 +7.3 +12.0 +10.9 +4.8 +4.2 Fruit/slot -53.7 +20.3 -20.9 +10.3 +2.9 -1.2 -2.2 -2.8 -3.1 +0.4 -2.8 -
Slide 7: Changing Sales Mix Since 2000
Changing Sales Mix Since 2000 Average Weekly Sales (£000) 50.0 45.0 3% 3% 40.0 3% 36% 35% (£16.6k) 35.0 3% (£15.7k) 34% 3% 4% 30.0 4% 4% 35% (£13.4k) 5% (£12.7k) 5% 31% 38% 25.0 25% 29% 29% (£10.0k) (£12.5k) 6% 24% (£8.8k) (£7.2k) (£8.7k) 6% 21% (£6.6) 20.0 18% (£5.2) (£4.2k) 15.0 61% 60% 62% (£27.0
Slide 8: 10 Year Operating Profit
10 Year Operating Profit H1 H1 £m 20202 2019 2018 20171 2016 2015 2014 2013 20121 2011 20212 2020 Turnover 431.1 933.0 1,262.0 1,818.8 1,693.8 1,660.8 1,595.2 1,513.9 1,409.3 1,280.9 1,197.1 1,072.0 Pub profit (pre repairs) 67.2 192.2 214.2 349.7 338.6 330.6 288.3 285.4 284.4 259.0 245.4 226.8 Repai
Slide 9: Covid-19 Summary
Covid-19 Summary • All pubs closed since 31 December 2020 • £13.1m of investment to ensure the safety of employees and customers • Employee infection rate no worse than the general population • More than 50m customer visits since July reopening and no evidence of outbreaks • 450 pub gardens due to r
Slide 10: Safeguarding Actions
Safeguarding Actions In response to the current pub closure, the following actions have been taken to safeguard the business: • Reduced capital expenditure • Reduced expenditure on repairs, utilities and general overheads • Around 99% of the workforce furloughed throughout the recent lockdown • Defe
Slide 11: Number of Pubs Open Throughout the Pandemic
Number of Pubs Open Throughout the Pandemic: 860 839 Open Pubs 800 802 709 EOTHO scheme Decisions taken to close 763 700 38 Scottish pubs due to govt. restrictions 600 First pubs re-opened 497 in England Areas moved 500 into strictest Tier 3 400 464 Third lockdown – 300 National Second lockdown – 20
Slide 12: Allocation of Resources
Allocation of Resources Dividend Freehold reversions and £13m investment properties £15m Share buybacks £8m £24m £15m £13m Capex on new and £14m existing pubs £22m £16m £89m £13m £25m £5m £36m £5m £13m £15m £98m £8 £8m £52m £33m £23m £77m £54m £28m £15m £71m £8m £6m £5m £154m £151m £6m £121m £115m £
Slide 13: Cash Capital Expenditure Update
Cash Capital Expenditure Update £m H1 2021 H1 2020 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 New Openings: Acquisition and development costs: Current year 1.3 14 18.6 19.8 32 27.2 38.6 76.5 64.5 40.4 57.2 74 Future year 5.8 20.8 31.8 7.5 14.4 13.1 16.6 30.5 33.2 12.8 10.4 9 Freehold reversio
Slide 14: Movement in Net Debt
Movement in Net Debt H1 H1 £m 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2021 2020 Opening Net Debt 817.0 737.0 737.0 726.2 696.3 650.8 601.1 556.6 474.2 462.6 437.7 388.4 Free cash flow 77.3 (49.0) 58.9 (97.0) (93.4) (107.9) (90.5) (109.8) (92.9) (65.3) (91.5) (78.8) Disposal of fixed assets
Slide 15: Property Update
Property Update H1 H1 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2021 2020 Trading pubs at start of FY 872 879 879 883 895 926 951 927 886 860 823 775 Freehold pubs opened 1 1 2 4 6 9 10 24 31 14 18 34 Leasehold pubs opened 1 – – 1 – 1 6 6 15 15 22 16 Closures/disposals (2) (6) (9) (9) (18) (
Slide 16: "It's a People Thing"
“It’s a People Thing” Bonus and free shares (Loss)/Profit after tax • 39,416 employees of which 15,032 are shareholders Financial Year £m £m • £428m of bonuses and free shares over the last 2020 33 (30) 15 years - equivalent of 55% of profits after tax 2019 46 80 2018 43 84 • Approximately 83% of th
Slide 17: Taxation
Taxation Wetherspoon Tax Payments In Financial Years 2011 To 2020 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 £m £m £m £m £m £m £m £m £m £m VAT 244.3 357.9 332.8 323.4 311.7 294.4 275.1 253.0 241.2 204.8 Alcohol duty 124.2 174.4 175.9 167.2 164.4 161.4 157 144.4 136.8 120.2 PAYE and NIC 106.6
Slide 18: Outlook
Outlook • Wetherspoon and its employees, along with the hospitality industry, have worked very hard to comply with ever-changing government guidelines • It is disappointing that so many regulations, implemented at tremendous cost to the nation, appear to have had no real basis in common sense or sci
Slide 19: Questions
wetherspoon Questions
Slide 20: Appendices
wetherspoon Appendices
Slide 21: Appendices
Appendices • A 10 year overview • B 10 year financial trends • C1 ROC/CROCCE/ROE calculations • C2 ROC/CROCCE/ROE calculations • D Summary of exceptional items • E IFRS-16 impact • F Swap maturity profile 20
Slide 22: 10 Year Overview
Appendix A 10 Year Overview Number of pubs £ millions Turnover 1000 1,800 950 1,600 1,400 900 1,200 850 1,000 800 1,819 951 800 1,595 1,661 1,694 927 926 895 1,409 1,514 1,262 750 886 883 879 872 874 872 1,281 823 860 600 1,072 1,197 933 700 400 650 200 431 600 0 2011 2012 2013 2014 2015 2016 2017 2
Slide 23: 10 Year Financial Trends
Appendix B 10 Year Financial Trends H1 H1 2021 2020 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Sales per pub (£000) (1) 767 1,013 2,017 2,075 1,921 1,807 1,694 1,620 1,562 1,476 1,401 1,360 EBITDA per pub (£000) (2) 61.8 122.7 139.9 253.3 248.0 229.0 209.2 200.9 204.5 200.9 194.9 198.7 Number
Slide 24: ROC/CROCCE/ROE
Appendix C1 ROC/CROCCE/ROE H1 H1 FY 2020 2021 2020 £000 £000 £000 Shareholders equity per accounts 379,241 319,907 325,199 Deferred tax balances 17,832 28,506 26,521 Interest rate swaps valuations 65,477 57,096 82,194 Impairment balances 44,058 19,115 44,058 Net book value of revalued assets (4,423)
Slide 25: ROC/CROCCE/ROE
Appendix C2 ROC/CROCCE/ROE 12 months to 12 months to FY 2020 January 2021 January 2020 £000 £000 £000 EBITDA (cash return) (e) (13,353) 227,473 86,150 Depreciation and amortisation (f) (78,590) (80,812) (79,639) EBIT (g) (91,943) 146,661 6,511 Interest (46,246) (36,557) (40,606) Profit before tax (1
Slide 26: Summary of Exceptional Items
Appendix D Summary of Exceptional Items H1 2021 H1 2020 £000 £000 Operating Exceptional Items COVID-related stock losses 2,200 Duty refunds and supplier credits (3,699) Equipment 2,516 Local government support grants (5,238) Staff costs 11,562 Other 195 7,536 Exceptional property losses Disposal pro
Slide 27: IFRS 16 – impact
Appendix E IFRS 16 – impact Profit and loss impact £m EBITDA £26.1 Depreciation £(23.0) Operating profit £3.1 Disposal of leases £1.1 Interest £(10.8) Profit before tax £(6.6) Tax £3.8 Profit after tax £(2.8) Balance sheet impact £m Right-of-use assets £527.6 Net lease liabilities £(568.8) Other £41
Slide 28: Swap Maturity Profile
Appendix F Swap Maturity Profile Swap Value From To Weighted Average % £770m 02 July 2018 29 Jul 2021 2.42 £770m 30 July 2021 30 July 2023 1.61 £770m 31 July 2023 30 July 2026 1.10 £770m 31 July 2026 30 June 2028 1.33 £770m 01 July 2028 29 March 2029 1.32 27
Slide 29: wetherspoon
wetherspoon 28