Fuller, Smith & Turner P.L.C. Class A · LSE:FSTA
Fuller, Smith & Turner P.L.C. Class A — H1 2008 Earnings Presentation
40 slides from Fuller, Smith & Turner P.L.C. Class A's earnings presentation, September 2007
Slide 1: Fuller, Smith and Turner PLC Half Year Results
Fuller, Smith and Turner PLC Half Year Results for the 6 months to 29 September 2007
Slide 2: Michael Turner, Chairman
Michael Turner Chairman
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 • Premium positioning • Pride in our brands • Continuing to expand the business
Slide 5: Corporate Progress
Corporate Progress First Half • Managed LFL sales up 5.3% (invested) • Fuller’s Inns profits up 4% • Own Beer volumes up 4% • Beer Company profits up 2% • Interest cover improved from 3.6x to 4.6x • Five for two share split
Slide 6: Financial Highlights
Financial Highlights • Revenue up 3% to £93.3m (2006: £91.1m) • Adjusted* PBT up 11% to £12.1m (2006: £10.9m) • PBT up 16% to £12.7m (2006: £10.9m) • EBITDA* up 3% to £21.0m (2006: £20.4m) • Adjusted* EPS up 13% to 15.18p (2006: 13.42p**) • Basic EPS up 52% to 20.34p (2006: 13.42p**) • Interim divid
Slide 7: Adjusted Half Year Profits
Adjusted Half Year Profits 14 12 12.1 10 10.9 8 £m 7.8 8.0 8.4 6 4 2 +4% +2% +5% +31% +11% 0 2003 2004 2005 2006 2007 Adjusted profits are profits before tax excluding exceptional items
Slide 8: Adjusted Half Year EPS
Adjusted Half Year EPS 16 14 15.2 12 13.4 Pence per share 10 9.5 10.1 8 9.1 6 4 2 +13% +3% +7% +33% +13% 0 2003 2004 2005 2006 2007 2003 to 2006 adjusted for the five for two share split
Slide 9: Interim Dividend
Interim Dividend 3 2.8 2.6 Pence per share 2 2.3 2.0 2.1 1 +7% +5% +5% +15% +8% 0 2003 2004 2005 2006 2007 2003 to 2006 adjusted for the five for two share split
Slide 10: Board Changes
Board Changes • Anthony Fuller stepped down as Chairman at AGM • Paul Clarke retires April 2008 • James Douglas, Finance Director Designate – Appointed to Board September 2007
Slide 11: Paul Clarke, Finance Director
Paul Clarke Finance Director
Slide 12: Financial Strengths
Financial Strengths • Good cash generation • High quality primarily freehold asset base • Efficient use of strong balance sheet • Focus on earnings growth • Funds available for expansion
Slide 13: Key Figures
Key Figures Sept Sept 2007 2006 EBITDA £21.0m £20.4m Net Assets £191.7m £157.8m Net Debt £103.7m £127.4m Gearing 54.1% 80.7% Interest Cover 4.6 x 3.6 x Effective Tax Rate* 30.1% 31.5% * Excluding exceptional items
Slide 14: Statutory Profit Reconciliation
Statutory Profit Reconciliation Sept Sept 2007 2006 £m £m Adjusted profits 12.1 10.9 Profits on property disposals 0.6 - Statutory pre-tax profit 12.7 10.9 Adjusted earnings per share 15.18p 13.42p Basic earnings per share 20.34p 13.42p
Slide 15: Annual Capital Expenditure
Annual Capital Expenditure 35 30 30.6 25 Fuller’s Inns £m 20 21.7 23.0 Beer Company 15 18.3 17.5 and Central 10 12.0 5 0 2003 2004 2005 2006 2007 2008 Projected
Slide 16: Simon Emeny, Managing Director Fuller's Inns
Simon Emeny Managing Director Fuller’s Inns
Slide 17: Our Priorities
Our Priorities • Outstanding cask conditioned ales • Delicious food • Great wines • Exemplary service
Slide 18: Fuller's Inns Key Figures
Fuller’s Inns Key Figures Sept Sept 2007 2006 Revenue £73.5m £72.3m + 1% Operating Profit* £13.3m £12.7m** + 4% EBITDA £17.5m £16.9m** + 3% * Excluding exceptional items ** Restated
Slide 19: Our Estate
Our Estate Warwickshire 1 Beds. 6 Bucks. Herts. Oxfordshire 16 17 14 Berks. London 20 150 Wiltshire Surrey 5 24 Hampshire Somerset 74 2 W. Sussex E. Sussex 22 4 Dorset 3 Isle of Wight 5
Slide 20: Retail Split
Retail Split March Transfers Additions Disposals Sept 2007 2007 Managed Pubs 156 -7 2 -1 150 Tenanted Pubs 201 7 - -1 207 Hotels 6 - - - 6 363 0 2 -2 363
Slide 21: Managed Pubs
Managed Pubs
Slide 22: Managed Pubs Trading Patterns
Managed Pubs Trading Patterns • Revenue up 5% • LFL sales up 5.3% (invested) • Food represents 29% of total revenue (2006: 27%) • Profits up 4% • Nine major projects in first half (2006: 11) • A very unusual summer
Slide 23: Smoking Solutions
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Slide 24: Retail Marketing
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Slide 25: Tenanted Pubs
Tenanted Pubs
Slide 26: Tenanted Pubs Trading Patterns
Tenanted Pubs Trading Patterns • Revenue up 6% • Average revenue per pub up 4.5% • Profits up 9% • Seven pubs transferred from Managed Estate • Continued investment in estate
Slide 27: Fuller's Hotels
Fuller’s Hotels • Disposal of Brigstow and Master Brewer in second half of 2006/7 • Revenue up 7%* • Profits up 10%* • RevPar up 8%* * Excludes disposals
Slide 28: Fuller's Inns Summary
Fuller’s Inns Summary • A pleasing first half for Fuller’s Inns • Managed Pubs LFL sales up 5.3% (invested) • Managed Pubs profits up 4% • Tenanted Pubs profits up 9% • Strong performance from Hotels - LFL profits up 10%
Slide 29: Fuller's Inns Looking to the Future
Fuller’s Inns Looking to the Future • Continued gradual rebranding of Gales in conjunction with planned refurbishments • Ongoing acquisitions programme • Impact of smoking ban likely to be seen during winter months – £3m capex spent to date • Increasing emphasis on local produce • 11 major refurbish
Slide 30: John Roberts, Managing Director The Fuller's Beer Company
John Roberts Managing Director The Fuller’s Beer Company
Slide 31: The Fuller's Beer Company Key Figures
The Fuller’s Beer Company Key Figures Sept Sept 2007 2006 Revenue £30.3m £29.1m + 4% Operating Profit* £3.5m £3.4m** + 2% EBITDA £4.5m £4.4m** + 2% * Excluding exceptional items ** Restated
Slide 32: Beer Volumes
The Fuller’s Beer Company Beer Volumes 2007 2006 Own Beer ‘000 brls ‘000 brls Free On Trade 60.6 58.6 + 3% Fuller’s Inns 18.8 18.5 + 2% Off Trade 17.3 16.8 + 3% Exports 10.7 8.9 + 20% Total Own Beer 107.4 102.8 + 4% Foreign Beer 59.0 60.5 - 2% Total Beer 166.4 163.3 + 2%
Slide 33: Comparison with UK Market
The Fuller’s Beer Company Comparison with UK Market Fuller’s UK UK Market Growth Growth* Total Beer + 1% - 4% Total Ale + 3% - 5% Off Trade Ale + 3% level Cask Ale + 1% - 3% * Source: BBPA
Slide 34: London Pride
The Fuller’s Beer Company London Pride • The UK’s leading premium ale • Increased share of cask, bottled and canned ale markets • Continued high profile advertising – “Whatever you do, take Pride” • Comprehensive promotions and sponsorship programme
Slide 35: Golf Sponsorship
Golf Sponsorship • Official Beer of the English Golf Union – Year one of five year sponsorship – 1,900 clubs in England & Wales • Official Beer of 2007 HSBC World Match Play
Slide 36: dvcoin
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Slide 37: The Fuller's Beer Company Summary
The Fuller’s Beer Company Summary • Total Beer volumes up 2% • Own Beer volumes up 4% • Foreign Beer volumes down 2% • Beer Company profits up 2% • Wine Division profits up 12%
Slide 38: The Fuller's Beer Company
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Slide 39: Prospects
Prospects • A very pleasing first half • Good geographic balance of pubs • Well-prepared for winter impact of smoking ban • Strong financial position • Continued excellent earnings growth delivering increased shareholder value
Slide 40: Whatever you do, take Pride
WHATEVER YOU DO, TAKE PRIDE.
Fuller, Smith & Turner — H1 2008 Earnings Presentation on 6ix