Slide 1: Interim Presentation 20 March 2020
INTERIM PRESENTATION 20 MARCH 2020 0
Slide 2: Financial Summary
Financial Summary H1 H1 2020 2019 Var% 2019 2018 20172 2016 2015 2014 2013 20122 2011 2010 Revenue 933.0 889.6 +4.9% 1,818.8 1,693.8 1,660.8 1,595.2 1,513.9 1,409.3 1,280.9 1,197.1 1,072.0 996.3 (£m) Like-for-like sales +5.0% +6.3% +6.8% +5.0% +4.0% +3.4% +3.3% +5.5% +5.8% +3.2% +2.1% +0.1% Profit b
Slide 3: Average Weekly Total Sales Per Pub
Average Weekly Total Sales Per Pub (including VAT) £000 49.5 50 48.0 46.8 48 44.4 46 44 41.7 42 39.0 40 37.4 38 36.0 36 34.0 34 32.3 31.1 32 30.1 30 28 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 H1 2019 2020 2
Slide 4: Underlying Earnings Per Share
Underlying Earnings Per Share* pence 80 76.5 75 70.2 66.6 70 65 60 55 48.0 47.6 50 44.7 43.8 43.5 41.3 45 40 34.9 35.3 33.9 35 30 25 20 15 10 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 H1 2019 2020 *Underlying earnings per share are before exceptional items and exclude gains/losses on prop
Slide 5: Like-for-like Performance
Like-for-like Performance H1 H1 % 2020 2019 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Bar +4.2 +5.9 +5.8 +5.1 +3.1 +3.3 +1.2 +2.7 +3.8 +2.8 +1.7 -0.8 Food +5.6 +7.1 +8.3 +5.1 +5.7 +3.5 +7.3 +12.0 +10.9 +4.8 +4.2 +0.1 Fruit/slot +20.3 +5.7 +10.3 +2.9 -1.2 -2.2 -2.8 -3.1 +0.4 -2.8 -3.9 +12.1 m
Slide 6: 10 Year Operating Profit
10 Year Operating Profit H1 H1 £m 20202 2019 2019 2018 20171 2016 2015 2014 2013 20121 2011 2010 Turnover 933.0 889.6 1,818.8 1,693.8 1,660.8 1,595.2 1,513.9 1,409.3 1,280.9 1,197.1 1,072.0 996.3 Pub profit (pre repairs) 192.2 169.6 349.7 338.6 330.6 288.3 285.4 284.4 259.0 245.4 226.8 218.5 Repairs
Slide 7: Half Year Cost Increases
Half Year Cost Increases • Wages: +8.4% (+£25.3m) • Repairs: +28.3% (+£10.2m) • Interest: +8.8% (+£1.5m) • Utilities : +5.1% (+£1.4m) 6
Slide 8: Allocation of Resources
Allocation of Resources Dividend £13m Freehold reversions and investment properties £15m Share buybacks £24m £15m £13m £14m Capex on new and existing pubs £22m £16m £89m £13m £25m £5m £36m £5m £13m £15m £8m £8m £52m £33m £23m £77m £54m £28m £15m £71m £26m £8m £8m £5m £154m £151m £6m £52m £121m £115m
Slide 9: Cash Capital Expenditure
Cash Capital Expenditure H1 H1 £m 2020 2019 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 New Openings: Acquisition and development costs: Current year 14.0 4.3 19.8 32.0 27.2 38.6 76.5 64.5 40.4 57.2 74.0 45.2 Future year 20.8 11.0 7.5 14.4 13.1 16.6 30.5 33.2 12.8 10.4 9.0 12.5 Freehold revers
Slide 10: Movement in Net Debt
Movement in Net Debt H1 H1 £m 2020 2019 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Opening Net Debt 737.0 726.2 726.2 696.3 650.8 601.1 556.6 474.2 462.6 437.7 388.4 390.0 Free cash flow (49.0) (71.7) (97.0) (93.4) (107.9) (90.5) (109.8) (92.9) (65.3) (91.5) (78.8) (71.3) Disposal of fixed as
Slide 11: Property Update
Property Update H1 H1 2020 2019 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Trading pubs at start of FY 879 883 883 895 926 951 927 886 860 823 775 731 Freehold pubs opened 1 1 4 6 9 10 24 31 14 18 34 15 Leasehold pubs opened – 1 1 – 1 6 6 15 15 22 16 32 Closures (6) (6) (9) (18) (41) (41) (6)
Slide 12: IFRS 16 – impact
IFRS 16 – impact Profit and loss impact £m EBITDA £28.4 Depreciation £(24.2) Operating profit £4.2 Interest £(10.8) Property gains £0.3 Profit before tax £(6.3) Tax £1.2 Profit after tax £(5.1) Balance sheet impact £m Right-of-use assets £579.2 Net lease liabilities £(583.9) Other £(0.4) Retained ea
Slide 13: It's a People Thing
“It’s a People Thing” • Around 43,000 employees of which 14,000 are shareholders • Manager retention: 2020 2013 2008 Pub Manager 12 yrs 6 mths 9 yrs 8 mths 7 yrs 1 mth Kitchen Manager 9 yrs 1 mth 6 yrs 5 mths 4 yrs 7 mths • Named for the 17th consecutive year as a Top Employer UK by the Top Employer
Slide 14: Changing Sales Mix since 2000
Changing Sales Mix since 2000 100% 4% 3% 3% 6% 5% 4% 90% 18% (£4.2k)* 25% 29% 33% (£6.9k)* 35% 80% (£8.7k)* (£11.1k)* (£14.6k)* 36% (£17.8k)* 70% 60% Machines 50% Food Bar 40% 76% Hotel/Other (£17.2k)* 70% 66% (£19.7k)* 63% 61% (£19.8k)* 60% 30% (£21.4k)* (£25.5k)* (£29.6k)* 20% 10% 0% 2000 2005 200
Slide 15: Achievements
Achievements Company Total Average • 99% of pubs Cask Marque approved Premises Rating Aldi 623 5.00 • Raised £0.9m in the last 6 months and nearly Waitrose McDonald’s 357 1207 4.97 4.96 £18.5m during the 18-year partnership with J D Wetherspoon plc 793 4.96 CLIC Sargent Nando’s 318 4.96 Sainsbury’s
Slide 16: Taxation
Taxation H1 H1 FY FY FY FY FY FY FY FY 2020 2019 2019 2018 2017 2016 2015 2014 2013 2012 £m £m £m £m £m £m £m £m £m £m VAT 182.5 175.5 357.9 332.8 323.4 311.7 294.4 275.1 253.0 241.2 Alcohol duty* 89.4 86.2 174.4 175.9 167.2 164.4 161.4 157.0 144.4 136.8 PAYE and NIC 62.2 59.0 121.4 109.2 96.2 95.1
Slide 17: Current Trading and Outlook
Current Trading and Outlook • LFL sales for the six weeks to 8th March +3.2% • Total sales for the six weeks to 8th March +2.9% • LFL sales for week ending 15th March -4.5% • Very difficult to predict, in these circumstances, how events will unfold • Anticipate profits being below market expectation
Slide 18: Questions
wetherspoon Questions
Slide 19: Appendix
wetherspoon Appendix
Slide 20: Appendices
Appendices • A 10 year overview • B 10 year financial trends • C 10 year debt overview • D1 ROC/CROCCE/ROE calculations • D2 ROC/CROCCE/ROE calculations • E1 Summary of exceptional items • E2 Pub disposal programme • F1 Peach Brand Track: brand for sit down meal • F2 Peach Brand Track: eating at qui
Slide 21: 10 Year Overview
Appendix A 10 Year Overview £ millions 2,000 Turnover Number of pubs 1,800 1000 950 1,600 900 1,400 850 1,200 1,819 800 1,694 951 1,000 1,595 1,661 927 926 1,514 750 886 895 883 879 879 1,409 860 874 1,281 823 800 1,197 700 775 996 1,072 890 933 650 600 600 400 2010 2011 2012 2013 2014 2015 2016 201
Slide 22: 10 Year Financial Trends
Appendix B 10 Year Financial Trends H1 H1 2020 2019 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Sales per pub (£000) 1,070 1,013 2,075 1,921 1,807 1,694 1,620 1,562 1,476 1,401 1,360 1,335 EBITDA per pub (£000) (1) 134.2 122.7 253.3 248.0 229.0 209.2 200.9 204.5 200.9 194.9 198.7 205.8 Number
Slide 23: 10 Year Debt Overview
Appendix C 10 Year Debt Overview H1 H1 2020 2019 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 Net debt/EBITDA 3.54 3.47 3.36 3.39 3.39 3.47 3.37 3.21 2.88 2.96 2.98 2.70 (EBITDAR - Reinvestment)/Fixed charges 2.26 2.25 2.26 2.25 2.21 2.14 1.97 1.79 1.88 1.75 1.74 2.01 Interest cover (times) 3.2
Slide 24: ROC/CROCCE/ROE
Appendix D1 ROC/CROCCE/ROE H1 H1 FY 2020 2019 2019 £000 £000 £000 Shareholders equity per accounts 319,907 312,095 316,812 Deferred tax balances 28,506 34,418 31,073 Interest rate swaps valuations 57,096 24,045 49,072 Impairment balances 19,115 18,171 19,675 Net book value of revalued assets (5,198)
Slide 25: ROC/CROCCE/ROE
Appendix D2 ROC/CROCCE/ROE 12 months to 12 months to FY January 2020 January 2019 2019 £000 £000 £000 EBITDA (cash return) (e) 227,473 208,507 219,327 Depreciation and amortisation (f) (80,812) (81,713) (81,811) EBIT (g) 146,661 126,794 137,516 Interest (36,557) (31,270) (35,057) Profit before tax 1
Slide 26: Summary of Exceptional Items
Appendix E1 Summary of Exceptional Items H1 H1 FY 2020 2019 2019 £000 £000 £000 Exceptional property losses Disposal programme (see next slide) 5,118 1,286 4,108 Other property losses Impairment of property, plant and equipment 1,290 – 2,252 Impairment of other assets – – 52 Impairment of intangible
Slide 27: Summary of Pub-Disposal Programme
Appendix E2 Summary of Pub-Disposal Programme The company has offered several of its sites for sale. During the half year, a further six (2019: two) sites had been disposed of and one (2019: two) was classified as held for sale. H1 H1 FY 2020 2019 2019 £000 £000 £000 Disposal programme Loss on dispo
Slide 28: CGA BrandTrack: preferred brand to eat out
Appendix F1 CGA BrandTrack: JDW consistently succeed in being voted preferred brand to eat out at Q: If the following brands were available in the same location, which would be your first choice to eat at? 1. 2. 3. 4. 4. 11% 9% 7% 6% 6% Source: CGA BrandTrack, Oct 2019 27
Slide 29: CGA BrandTrack: most used eating brands
Appendix F2 CGA BrandTrack: JDW is the 4th most used eating brand in GB, holding its own against quick serve outlets 1. 2. 3. 4. 5. 59% 50% 48% 39% 38% Percentage of GB population eaten at brand in past 6 months Source: CGA BrandTrack, Oct 2019 28
Slide 30: Swap Maturity Profile
Appendix G Swap Maturity Profile Swap Value From To Weighted Average % £770m 02 Jul 2018 29 Jul 2021 2.42 £770m 30 Jul 2021 30 Jul 2023 1.61 £770m 31 Jul 2023 30 Jul 2026 1.10 £770m 31 Jul 2026 30 Jun 2028 1.33 £770m 01 Jul 2028 29 Mar 2029 1.32 29