Slide 1: J D Wetherspoon PLC Preliminary Results
J D Wetherspoon PLC Preliminary Results 7 October 2022
Slide 2: Financial Summary
Financial Summary 20222,3 20213 Var% 2020 2019 2018 20172 2016 2015 2014 2013 Revenue 1,740.5 772.6 125.3% 1,262.0 1,818.8 1,693.8 1,660.8 1,595.2 1,513.9 1,409.3 1,280.9 (£m) Like-for-like sales +29.9% -38.4% -29.5% +6.8% +5.0% +4.0% +3.4% +3.3% +5.5% +5.8% (vs 2021) (vs 2020) (Loss)/profit before
Slide 3: Average Weekly Sales Per Pub
Average Weekly Sales Per Pub (including VAT) £000 48.0 46.5 48 45.3 44.4 46 44 41.7 42 39.0 40 37.4 38 36.0 36 34.0 34.1 34 32.3 32 30 28 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Financial years 2020, 2021 and 2022 were impacted from a VAT reduction during the COVID-19 pandemic (15 Jul
Slide 4: Underlying (Losses)/Earnings Per Share (pence)
Underlying (Losses)/Earnings Per Share (pence)* pence 76.5 80.0 70.2 66.6 70.0 60.0 48.0 47.6 50.0 41.3 44.7 43.8 40.0 30.0 20.0 -35.9 -119.1 -21.3 10.0 0.0 -10.0 -20.0 -30.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 *Underlying (losses)/earnings per share are before exceptional items a
Slide 5: Like-for-like Performance
Like-for-like Performance % 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 (vs 2019) (vs 2020) Bar -6.5 -42.2 -29.3 +5.8 +5.1 +3.1 +3.3 +1.2 +2.7 +3.8 Food -3.2 -37.4 -30.1 +8.3 +5.1 +5.7 +3.5 +7.3 +12.0 +10.9 Fruit/slot +12.3 -52.1 -20.9 +10.3 +2.9 -1.2 -2.8 -2.8 -3.1 +0.4 machines Hotel +6.5 -2
Slide 6: 10 Year Operating Profit
10 Year Operating Profit £m 20221,2 20212 2020 2019 2018 20171 2016 2015 2014 2013 Turnover 1,740.5 772.6 1,262.0 1,818.8 1,693.8 1,660.8 1,595.2 1,513.9 1,409.3 1,280.9 Pub profit (pre repairs) 295.8 131.5 214.2 349.7 338.6 330.6 288.3 285.4 284.4 259.0 Repairs (100.7) (63.3) (75.9) (76.9) (71.3) (
Slide 7: Allocation of Resources
Dividend Allocation of Resources Freehold reversions and investment properties £13m Share buybacks £15m £8m £24m £15m Capex on new and £14m £13m existing pubs £22m £16m £89m £13m £36m £13m £15m £98m £8m £52m £23m £77m £54m £28m £15m £26m £8m £6m £5m £154m £151m £113m £115m £17m £94m £99m £95m £97m £
Slide 8: Cash Capital Expenditure
Cash Capital Expenditure £m 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 New Openings: Acquisition and development costs: Current year 26.2 11.5 18.6 19.8 32.0 27.2 38.6 76.5 64.5 40.4 Future year 24.9 9.6 31.8 7.5 14.4 13.1 16.6 30.5 33.2 12.8 Freehold reversions and investment 25.8 16.9 98.5
Slide 9: Movement in Net Debt
Movement in Net Debt £m 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Opening Net debt 845.5 817.0 737.0 726.2 696.3 650.8 601.1 556.6 474.2 462.6 Free cash flow 21.9 83.3 58.9 (97.0) (93.4) (107.9) (90.5) (109.8) (92.9) (65.3) Disposal of fixed assets (10.5) (2.6) (4.8) (9.3) (4.7) (19.6) (22.5
Slide 10: Property Update
Property Update 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Trading pubs at start of FY 861 872 879 883 895 926 951 927 886 860 Freehold pubs opened 7 4 2 4 6 9 10 24 31 14 Leasehold pubs opened – 1 – 1 – 1 6 6 15 15 Sold or closed pubs (15) (16) (9) (9) (18) (41) (41) (6) (5) (3) Total tradin
Slide 11: People and standards
People and standards Average pub Average kitchen Financial year manager length manager length of service of service (Years) (Years) 2013 9.1 6.0 2014 10.0 6.1 2015 10.1 6.1 • The company has just over 42,000 employees 2016 11.0 7.1 Financial Bonus and (Loss)/Profit Bonus etc as Year free shares £m a
Slide 12: CGA Brandtrack research – April 2022
CGA Brandtrack research – April 2022 In the unlicensed market, Wetherspoon is the 3rd most visited of all brands in a six month period 1st 2nd 3rd 4th 5th Usage 59% 51% 43% 40% 36% Awareness 100% 92% 83% 88% 93% CGA BrandTrack April 2022 11
Slide 13: CGA Brandtrack research – April 2022
CGA Brandtrack research – April 2022 The only other licensed brand that falls into the top 10 is Nando’s, with other key competitors only just making it into the top 15 % of consumers visited in Top 6 brands in GB Ranking amongst all brands the last 6 months JD Wetherspoon 43% 3rd Nando's 20% 9th To
Slide 14: ESG (Environmental, social and governance)
ESG (Environmental, social and governance) Wetherspoon is committed to operating ethically and sustainably The company is developing a net-zero road Waste is segregated into a minimum of 7 map. streams. Expect to make submission to Science Unwanted, yet fit-for-consumption food is Based Targ
Slide 15: Changing sales mix since 2000
Changing sales mix since 2000 100% 6% 5% 4% 4% 3% 3% 90% 18% (£4.2k)* 25% 29% 33% 36% 80% (£6.9k)* (£8.7k)* (£17.3k)* 36% (£11.1k)* (£16.2k)* 70% 60% Hotel/Other Machines 50% Food Bar 40% 76% (£17.2k)* 70% 66% (£19.7k)* 63% (£19.8k)* 60% 60% 30% (£21.4k)* (£28.8k)* (£27.1k)* 20% 10% 0% 2000 2005 200
Slide 16: Taxation
Taxation* TOTAL 20221 20211 2020 2019 2018 2017 2016 2015 2014 2013 2013 to 2022 £m £m £m £m £m £m £m £m £m £m £m VAT 287.7 93.8 244.3 357.9 332.8 323.4 311.7 294.4 275.1 253.0 2,774.1 Alcohol duty 156.6 70.6 124.2 174.4 175.9 167.2 164.4 161.4 157.0 144.4 1,496.1 PAYE and NIC 141.9 101.5 106.6 121.
Slide 17: Current Trading and Outlook
Current Trading and Outlook • Like-for-like sales in the first nine weeks of the current financial year were 10.1% higher than the same weeks in 2021 • Prospects have improved: – Underlying sales are improving – The company owns an increasing percentage of freehold properties – Post IFRS 16 net debt
Slide 18: Questions
wetherspoon Questions
Slide 19: Appendices
wetherspoon Appendices
Slide 20: Appendices
Appendices • A 10 year overview • B 10 year financial trends • C Summary of exceptional items • D 10 year debt overview • E1 ROC/CROCCE/ROE calculations • E2 ROC/CROCCE/ROE calculations • F Swap maturity profile 19
Slide 21: 10 Year Overview
Appendix A 10 Year Overview Number of pubs £ millions Turnover 1000 1,800 950 1,600 900 850 1,400 800 1,200 1,819 1,740 927 951 1,661 1,694 926 1,595 750 860 886 895 883 879 872 1,514 861 852 1,409 1,000 700 1,197 1,281 1,262 650 800 773 600 600 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 22: 10 Year Financial Trends
Appendix B 10 Year Financial Trends 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Sales per pub (£000) (1) 2,011 1,573 2,017 2,075 1,921 1,807 1,694 1,620 1,562 1,476 EBITDA per pub (£000) (2) (4) 125.7 (21.7) 139.9 253.3 248.0 229.0 209.2 200.9 204.5 200.9 Number of pubs 852 861 872 879 883 895
Slide 23: Summary of Exceptional Items
Appendix C Summary of Exceptional Items 2022 2021 £000 £000 Operating exceptional items Rank settlement (27,771) - Local government support grants (1,443) (11,123) Duty drawback (170) (4,418) Exceptional operating costs - 24,482 (29,384) 8,941 Exceptional property losses 24,430 4,132 Disposal progra
Slide 24: 10 Year Debt Overview
Appendix D 10 Year Debt Overview1 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Net debt/EBITDA 10.152 -27.322 9.48* 3.36 3.39 3.39 3.47 3.37 3.21 2.88 (EBITDAR - Reinvestment)/Fixed 1.022 -0.212 1.01* 2.26 2.25 2.21 2.14 1.97 1.79 1.88 charge Interest cover (times) 1.72 -2.85 -1.33 3.72 4.19 3.
Slide 25: ROC/CROCCE/ROE
Appendix E1 ROC/CROCCE/ROE 2022 2021 £000 £000 Shareholders equity per accounts 277,977 300,344 Deferred tax balances 34,718 16,546 Interest rate swaps valuations 2,031 37,643 Impairment balances 60,477 48,190 Net book value of revalued assets (3,687) (4,540) Adjusted shareholders equity (a) 371,516
Slide 26: ROC/CROCCE/ROE
Appendix E2 ROC/CROCCE/ROE 2022 2021 £000 £000 EBITDA (cash return) 2 (e) 87,835 (30,942) Depreciation and amortisation (f) (74,554) (76,474) EBIT (g) 13,281 (107,416) Interest (40,655) (47,260) Loss before tax (27,374) (154,676) Current tax (h) (22) (1,166) Loss after cash tax (i) (27,396) (155,842
Slide 27: Swap Maturity Profile
Appendix F Swap Maturity Profile Swap Value From To Weighted Average % £770m 30 July 2021 30 July 2023 1.61% £770m 31 July 2023 30 July 2026 1.10% £770m 31 July 2026 30 June 2028 1.33% £770m 01 July 2028 29 March 2029 1.32% £770m 31 March 2029 30 November 2031 1.02% 26
Slide 28: wetherspoon
wetherspoon 27