Fuller, Smith & Turner P.L.C. Class A · LSE:FSTA
Fuller, Smith & Turner P.L.C. Class A — FY2008 Earnings Presentation
36 slides from Fuller, Smith & Turner P.L.C. Class A's earnings presentation, June 2008
Slide 1: Preliminary Results for the 52 weeks ended 29 March 2008
Fuller, Smith and Turner PLC Preliminary Results for the 52 weeks ended 29 March 2008
Slide 2: Agenda
Agenda Strategy Corporate Progress Key Financials Fuller’s Inns The Fuller’s Beer Company Prospects
Slide 3: Consistent Strategy
Consistent Strategy Fundamental objective continues to be to maximise shareholder returns by generating high quality, sustainable earnings • Long term focus • Culture of style not fashion • Passion for quality • Premium positioning • Pride in our brands • Continuing to expand the business • Investin
Slide 4: Corporate Progress
Corporate Progress • Good underlying growth • Managed Pubs and Hotels invested LFL sales up 3.6% • Fuller’s Inns profits level despite sale of two hotels in 2007 • Own Beer volumes up 4% • Beer Company profits up 1% • Net exceptional profits of £0.8m (2007: profits of £20.1m)
Slide 5: Financial Highlights
Financial Highlights • Revenue up 2% to £181.1m (2007: £178.2m) • Adjusted1 PBT up 4% to £23.0m (2007: £22.1m) • Adjusted1 EPS up 6% to 29.15p2 (2007: 27.58p3) • PBT down 44% to £23.8m (2007: £42.2m) due to last year exceptional Hotel disposal profits of £20.1m • Basic EPS down 34% to 34.33p2 (2007:
Slide 6: Adjusted Profits
Adjusted Profits 25 20 22.1 23.0 15 17.3 17.9 £m 16.3 10 5 +3% +6% +4% +23% +4% 0 2004 2005 2006 2007 2008 Adjusted profits are profits before tax excluding exceptional items
Slide 7: Adjusted EPS
Adjusted EPS 35 30 Pence per 40p share 25 27.6 29.2 20 21.9 20.7 15 19.1 10 5 +12% +8% +6% +26% +6% 0 2004 2005 2006 2007 2008 Excluding exceptional items 2004 to 2007 adjusted for the five for two share split
Slide 8: Full Year Dividends
Full Year Dividends 10 9.7 8 9.1 Pence per 40p share 7.9 7.4 6 6.9 4 2 +7% +7% +7% +15% +7% 0 2004 2005 2006 2007 2008 2004 to 2007 adjusted for the five for two share split
Slide 9: Segmental split
Segmental split 2008 2007 Segment Revenue £m £m Fuller’s Inns 141.5 140.9 level Fuller’s Beer Co. 60.3 58.4 + 3% Inter segment revenue (20.7) (21.1) - 2% Revenue 181.1 178.2 + 2% Segment Profits* Fuller’s Inns* 23.9 24.0 level Fuller’s Beer Co.* 8.0 7.9 + 1% Central costs* (2.5) (2.1) + 21% Operatin
Slide 10: Key Metrics
Key Metrics 2008 2007 EBITDA* £40.5m £40.7m Net Debt £95.5m £96.5m Net Debt / EBITDA 2.4 x 2.4 x Interest Cover* 4.6 x 3.9 x Net Assets £197.7m £182.7m Effective Tax Rate* 29.5% 30.4% * Excluding exceptional items
Slide 11: Statutory Profit Reconciliation
Statutory Profit Reconciliation Mar 2008 Mar 2007 £m £m Adjusted profits 23.0 22.1 Profits on property disposals 5.3 20.1 Onerous leases (2.1) – Pension adjustment (2.4) – Statutory profit before tax 23.8 42.2 Adjusted earnings per share* 29.15p 27.58p Basic earnings per share* 34.33p 52.14p *Per 40
Slide 12: Cash Flow
Cash Flow 2008 2007 £m £m EBITDA 40.5 40.7 Share based payment 1.6 1.4 Working capital (2.3) (1.1) Pension (8.5) (3.1) Capex (18.5) (21.7) Disposals 8.2 37.7 Interest and tax (11.3) (12.5) Share buy backs and dividends (8.8) (8.4) Other 0.1 0.5 Net debt b/f (96.5) (130.0) Net debt c/f (95.5) (96.5)
Slide 13: Annual Capital Expenditure
Annual Capital Expenditure 40 30.6 35 New Pubs 30 21.7 Fuller’s Inns 25 £m 18.3 17.5 18.5 20 Beer Company 15 and Central 10 5 0 2004 2005 2006 2007 2008
Slide 14: Financial Strengths
Financial Strengths • Market leader • Premium position • Powerful, well-invested brands • Quality asset base • Cash-generative • Strong balance sheet • Strategic flexibility
Slide 15: Fuller's Inns
Fuller’s Inns Key Figures Mar Mar 2008 2007 Revenue £141.5m £140.9m level Operating Profit* £23.9m £24.0m level EBITDA* £32.6m £32.4m + 1% * Excluding exceptional items
Slide 16: Key Drivers
Key Drivers • Consistent sector leading LFL growth • High quality estate • Focus on outstanding cask conditioned ales, delicious food, great wines and exemplary service • Continued development of bedrooms • High quality retail marketing • E-commerce / website
Slide 17: Retail Split
Retail Split April Transfers Additions Disposals March 2007 2008 Managed Pubs 162 (6) 2 (1) 157 (including Hotels) Tenanted Pubs 201 6 – (4) 203 363 0 2 (5) 360
Slide 18: Managed Pubs
Managed Pubs
Slide 19: Managed Pubs and Hotels: Trading Patterns
Managed Pubs and Hotels Trading Patterns • Revenue level – despite prior year hotel disposals • Invested LFL sales (excluding Hotels) up 3.2% • Invested LFL Hotel sales up 7.5% • LFL Hotel revpar up 8.9% • Total invested LFL sales (including Hotels) up 3.6%
Slide 20: Boutique Pub Bedrooms
Boutique Pub Bedrooms
Slide 21: Managed Pubs and Hotels: Trading Patterns
Managed Pubs and Hotels Trading Patterns • Food represents 27% of revenue* (2007: 25%) • Accommodation represents 7% of revenue (2007: 8%) • Excellent condition of estate maintained • 18 major projects during the year (2007: 21) • Trading performance declined in H2 • Profits down 3% * Revenue adjust
Slide 22: Managed Pubs and Hotels: Invested LFL sales
Managed Pubs and Hotels Invested LFL sales • A strong performance in a difficult market place • Continued industry leading invested LFL sales growth Including Excluding Hotels Hotels 2005/06 3.7% 4.0% 2006/07 8.2% 8.2% 2007/08 3.6% 3.2%
Slide 23: Tenanted Inns
A _ axis LLER ®, Tenanted Inns
Slide 24: Tenanted Inns: Trading Patterns
Tenanted Inns Trading Patterns • Revenue up 5% • Average revenue per pub up 2.4% • LFL sales up 0.3% • Profits up 4% • Six pubs transferred from Managed Pubs • Significant investment in estate with repairs up 6%
Slide 25: Award Winning Pub Company
Award Winning Pub Company • The Publican Awards, March 2008 – Managed Pub Company of the Year – 100+ outlets – Tenanted / Leased Pub Company of the Year – 200+ outlets • Morning Advertiser Number 1 pub in the UK – The Churchill Arms, Kensington
Slide 26: Fuller's Inns Summary
Fuller’s Inns Summary • A robust performance in a challenging year • Estate is in excellent condition • Consistent sector leading invested LFL sales • Strong business model
Slide 27: The Fuller's Beer Company: Key Figures
The Fuller’s Beer Company Key Figures Mar Mar 2008 2007 Fuller’s Inns £20.7m £21.1m - 2% External customers £39.6m £37.3m + 6% Total revenue £60.3m £58.4m + 3% Operating profit* £8.0m £7.9m + 1% EBITDA* £9.9m £9.9m + 1% * Excluding exceptional items
Slide 28: Beer Volumes
The Fuller’s Beer Company Beer Volumes 2008 2007 Own Beer ‘000 brls ‘000 brls Free On Trade 121.9 120.0 + 2% Fuller’s Inns 37.9 38.0 level Off Trade 36.3 34.0 + 7% Exports 20.2 16.7 + 21% Total Own Beer 216.4 208.7 + 4% Foreign Beer 109.5 114.5 - 4% Total Beer 325.9 323.2 + 1%
Slide 29: Comparison with UK Market
The Fuller’s Beer Company Comparison with UK Market Fuller’s UK UK Market Growth Growth* Total Beer level - 4% Total Ale + 2% - 6% Off Trade Ale + 7% +1% Cask Ale level - 4% * Source: BBPA
Slide 30: Key Drivers
Key Drivers • Broad portfolio of award-winning brands • Premium positioning • Total commitment to quality • High profile marketing support • Well-balanced business – On Trade – Off Trade – Export – Wine Division
Slide 31: London Pride
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Slide 32: The Fuller's Beer Company
The Fuller’s Beer Company
Slide 33: The Fuller's Beer Company Summary
The Fuller’s Beer Company Summary • Total Beer volumes up 1% • Own Beer volumes up 4% • Foreign Beer volumes down 4% • Beer Company profits up 1% • Wine Division profits up 9%
Slide 34: The Fuller's Beer Company
M2 The Fuller’s Beer Company
Slide 35: Prospects
Prospects • Businesses performing well in challenging markets • First nine weeks invested LFL sales up 2.4% • UK economic outlook uncertain • Our consistent focus on quality underpins the robust performance • Management strength in depth • Long term strategy to deliver growth • Well placed to contin
Slide 36: Whatever you do, take pride
Ingredients: hops, " barley, | oNDon, eee yeast, a pride. =z WHATEVER YOU DO, TAKE PRIDE.
Fuller, Smith & Turner — FY2008 Earnings Presentation on 6ix