Mitchells & Butlers plc · LSE:MAB
Mitchells & Butlers — Merger or Acquisition (2002)
10 slides from Mitchells & Butlers's merger presentation, 2002
Slide 1: Richard North
RICHARD NORTH 12
Slide 2: Hotels: Overview
Hotels: Overview Strong Competitive Brands Significant Global Scale Position 3,323 hotels** 515,463 rooms** Rooms in system: 98 countries** #2 worldwide 13.5m Priority Club Rewards Members*** #2 in US #2 in Europe + #1 in Asia Pacific £1.9bn revenue* £427m EBIT* Ca. £250m in off P&L system fund spen
Slide 3: Hotels: Strategy
Hotels: Strategy Develop high quality, strongly differentiated brands 1. - the brand promise of asset quality, service standards, brand personality Leverage global system scale economies to drive superior RevPAR and GOP premiums 2. - driving the benefits in IT, sales and brand marketing Build up net
Slide 4: Hotels: Management
Hotels: Management z Previously: Chairman Sir Ian Prosser Chairman Six Continents PLC (Since 2000) Age: 59 Chairman and Chief Executive, Six Continents PLC z Also Chairman, Britvic; previously: Chief Richard C. North Group Finance Director, Six Continents PLC Executive Age: 52 Group Finance
Slide 5: Hotels: Capital Structure & Dividend
Hotels: Capital Structure & Dividend z Balance sheet strength Capital Structure z Credit Rating BBB / Baa2 z Net debt 30/09/03 estimated around £1.3bn* z First year dividend of 13.5p** Dividend z Targeting real increases in dividend z Rebuild cover over time * At market value ** Post share consolida
Slide 6: Hotels: Trading Update
Hotels: Trading Update z Improving performance in weak market z Focus on sales and marketing delivering results z Renovation programme on plan z September trading 17
Slide 7: Britvic Soft Drinks
Britvic Soft Drinks z Retained with hotels management continuity on-trade opportunities z Good prospects z Current trading 18
Slide 8: Return of Capital
Return of Capital z £700m return (81p per share) z Required investment grade ratings z Tougher ratings environment z Capital plus prospective dividends - £970m 19
Slide 9: Conclusion
Conclusion z Freedom to pursue appropriate strategies z Improve ability to participate in consolidation z Align management rewards more directly to performance z Sharpen management focus z Provide clear market valuations z Create efficient balance sheets Further details to be sent to shareholders ea
Slide 10: Hotels, Retail & Britvic
Hotels, Retail & Britvic ae InTeRCONTI NENTAL OPNSOy A BROWNS <I CROWNE PLAZA y HOTELS RELONTE *ethia eenoete Goose Goose Yotidas Syn EXPRESS ALL’ BAR:-ONE