Whitbread Plc · LSE:WTB
Whitbread — Merger or Acquisition (February 2011)
11 slides from Whitbread's merger presentation, February 2011
Slide 1: An opportunity to grow Costa even faster
An opportunity to grow Costa even faster
Slide 2: Today's Announcement
Today’s Announcement • Acquisition of Coffee Nation for £59.5m – c.900 self-serve coffee bars in premium locations • Intention to launch Costa Express – Costa coffee served from Coffee Nation machines • Plan to expand the business rapidly – 3,000+ units, quadrupling profit contribution in 5 years 2
Slide 3: Costa Express
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Slide 4: The Opportunity
The Opportunity To take a leading position in the emerging „self–serve‟ coffee bar sector Traditional Vending Self-Serve Coffee Bars (Total Hot Beverages)* Today Potential (2020) Machines 320,000 2,000 14,000 Cups per Year 6.2 billion 70 million 500 million Source: PWC Market estimates based on publ
Slide 5: Strategic Rationale
Strategic Rationale Best Brand + Best System = Opportunity + = Combining Costa and Coffee Nation creates a tremendous opportunity for profitable growth by leveraging genuine competitive advantage 5
Slide 6: Best brand: Costa
Best brand: Costa Costa is clearly established as the UK‟s best-loved, largest & fastest growing coffee shop brand Best Loved Largest Fastest Growing 54% Growth: % +57% 1200 08/09 vs 10/11 750 +37% 450 27% 11% Stores Sales Source: Allegra strategies Dec 2010 Source: Company data Competitor websites
Slide 7: Best System: Coffee Nation
Best System: Coffee Nation “The self-serve coffee bar experts” • Market leader (45% sector share) • Advanced monitoring systems • National service network • Quality customers: Tesco, Moto etc • Fresh beans, fresh milk, fresh coffee 7
Slide 8: The Opportunity: Costa Express
The Opportunity: Costa Express Making Costa Available to Coffee Lovers Everywhere Corporate Sales Costa Stores “On the go” Wholesale Hand-made Bean-to-cup Bean-to-cup Barista served Self-serve Served Coffee, Service & “Great Coffee served quick” Coffee & Convenience Environment Costa Express: Costa
Slide 9: Our Vision: Rapid Growth…
Our Vision: Rapid Growth… No. of machines Wherever customers want Costa On The Go • Train Stations • Hospitals • Supermarkets • Airports • Universities • Offices 9
Slide 10: Financial Performance
Financial Performance Year to 31/03/10*¹ Year to 31/03/11 £m (estimated outturn) Sales 23.6 25.0 EBITA 2.2 2.4 EBITDA*² 3.6 4.2 Number of machines 772 899 *¹ Per management accounts *² Estimated run rate EBITDA as at 31/03/11 £5.5m - £6.0m
Slide 11: Forward-looking statements
• This slide presentation may contain certain forward-looking statements or projections made by Whitbread PLC. Although Whitbread PLC believes its expectations are based on reasonable assumptions, any statements about future outlook are subject to risks and uncertainties that may cause actual outcom