Shepherd Neame Limited Class A · AQUIS:SHEP

Shepherd Neame Limited Class A — Shareholder Meeting (October 2015)

50 slides from Shepherd Neame Limited Class A's shareholder meeting presentation, Oct 16, 2015

  1. Slide 1: Shepherd Neame Ltd AGM 16 October 2015

    BY APPOINTMENT TO: HIS ROYAL HIGHNESS THE PRINCE OF WALES SUPPLIER OF SPECIALIST ORDERS SHEPHERD NEAME LTD FAVERSHAM KENT Shepherd Neame Ltd AGM 16 October 2015

  2. Slide 2: Miles Templeman, Chairman

    Miles Templeman Chairman

  3. Slide 3: 2015: Positive evolution of our strategy

    2015: Positive evolution of our strategy  Record operating profit and strong cash flow generation  Continued trading momentum in pub business with strong growth in Managed pubs  Increased investment in existing pub estate delivering higher returns  Modest growth in core and licensed brands*  Fi

  4. Slide 4: Dividend per share

    A year of further growth in net assets per share and dividend 35p Dividend per share Net Assets per share* £14 30p 26.7p £12 Net assets per share Dividend per share 25p £10 £8.89 20p £8 15p £6 10p £4 2011 2012 2013 2014 2015  Dividend policy post share capital reorganisation to grow dividend cover

  5. Slide 5: Progress since year end

    Progress since year end  Refinancing completed providing flexible medium term facilities to support growth  10 acres of development land in Faversham currently being marketed for disposal  Process underway for movement to FRS102 in 2016

  6. Slide 6: Mark Rider, Finance & IT Director

    Mark Rider Finance & IT Director

  7. Slide 7: Performance highlights

    Performance highlights 2015 2014 % Before exceptional items £m £m Turnover 138.3 138.7 (0.3) Operating Profit 14.1 13.4 5.1 Net Finance Costs (4.5) (4.6) 2.9 Profit before Tax 9.6 8.8 9.4 Tax Rate (%) 22.6 18.5 Earnings Per Share (pence) 50.3 48.5 3.7 Full Year Dividend per share (pence) 26.7 25.9 3

  8. Slide 8: Key drivers of trading performance

    Key drivers of trading performance Tenanted pubs +0.6% Turnover Managed pubs +9.4% Brewing & Brands -7.0% Core own and licensed beer (excluding contract) +0.1% Beer Volume Total own brewed beer volume (Kingfisher went from 13.5% to 6.1% of -8.4% output)

  9. Slide 9: Update on 2015 impacts from 2013 and 2014 initiatives

    Update on 2015 impacts from 2013 and 2014 initiatives 2015 Business and Board +£0.5m reorganisation Full year cost impact -£0.4m of water recovery plant Increased investment in property repairs and -£0.1m decorations

  10. Slide 10: Balance Sheet strengthened through reduced debt and leverage

    Balance Sheet strengthened through reduced debt and leverage 2015 2014 £m £m Fixed Assets 205.3 202.7 Other Assets and Liabilities (4.3) (2.4) Net Debt (68.8) (71.5) Shareholders Funds 132.2 128.8 Net Debt : EBITDA pre exceptional items 3.3 3.5 Balance Sheet Gearing 52% 56%  New medium term financi

  11. Slide 11: Jonathan Neame, Chief Executive

    Jonathan Neame Chief Executive

  12. Slide 12: 2015: Strong financial performance with good progress against strategic objectives

    2015: Strong financial performance with good progress against strategic objectives  Strong trading performance across pub estate with good growth across liquor, food and accommodation  Changes made in the Business are fully embedded enabling us to focus on operational excellence and driving higher

  13. Slide 13: Market context

    Market context  Growth in eating out and overnight trips  Beer market volume declining by 2.4%* - On trade now less than half the market - Continued consumer trends towards greater taste and flavour and local beers with provenance and authenticity  Regeneration of North Kent and East Kent coastal

  14. Slide 14: Continued progress against our strategic objectives

    Continued progress against our strategic objectives CREATING DRIVING DEMAND AND FOOTFALL TO BUILDING OUR PUBS AWARENESS FOR OUR BRANDS OUR STRATEGIC OBJECTIVES PROVIDING A ATTRACTING, DISTINCTIVE RETAINING AND RANGE OF DEVELOPING THE COMPLEMENTARY BEST PEOPLE PRODUCTS

  15. Slide 15: Driving footfall to our pubs: Increased investment in existing estate

    Driving footfall to our pubs: Increased investment levels in existing estate for 5 years Managed Pubs and Hotels  Consistent strong trading performance LFL Turnover growth 8.9% across pub estate 6.1%  We have invested £6.5m (2014: £5.1m) improving the look and feel of our pubs 3.3% and £2.1m (2014

  16. Slide 16: Improving the internal and external appearance of our pubs

    Driving footfall to our pubs: Improving the internal and external appearance of our pubs Smack Inn, Whitstable Railway Telegraph, Forest Hill Abbey Hotel, Battle The Six Bells, Cliffe

  17. Slide 17: Completing the current development phase of our hotels

    Driving footfall to our pubs: Completing the current development phase of our hotels  £2.4m invested in 2015 at Royal Wells Hotel, Tunbridge Wells, creating a superb and stylish venue - 27 bedrooms and 2 function rooms  Website to market our wedding venues

  18. Slide 18: £3.4m invested in new freehold acquisitions

    Driving footfall to our pubs: £3.4m invested in new freehold acquisitions Freehold acquired of The Lock and Barrel, Frinton-on-Sea The Inn on the Pond, Nutfield The Ostrich, Colnbrook

  19. Slide 19: Two further acquisitions since the year end

    Driving footfall to our pubs: Two further acquisitions since the year end  Acquisition strategy targets pubs with unique character in landmark The Anchor, Yalding or high footfall locations  Both pubs will be redeveloped in due course The Minnis Bay Bar & Restaurant, Birchington

  20. Slide 20: Continued active property management

    Continued active property management Transferred Transferred 2010 Acquisitions to Tenancy to Managed Disposals 2015 Tenanted 320 7 4 (4) (41) 286 Managed 45 7 (4) 4 0 52 Total 365 14 0 0 (41) 338  Average EBITDAR per pub growth (2010 to 2015) - Tenanted +17.5% - Managed +58.5%  2015 pub ownership

  21. Slide 21: Attracting, retaining and developing the best people

    Attracting, retaining and developing the best people  Focus on induction training and customer service through new e-learning services  New scheme for personal and skills development for chefs  Additional recruitment of - Business Development Managers - Field Trainer - Trade Quality Advisors - Pr

  22. Slide 22: Providing a distinctive range of complementary products

    Providing a distinctive range of complementary products  Enhanced offer to exploit growth in craft spirits  Improved mineral range with premium flavoured carbonates from local producer, Kingsdown Water

  23. Slide 23: Liquor, food and accommodation like-for-like growth

    Providing a distinctive range of complementary products  Liquor LFL growth +4.3% (2014: 8.0%)  Food LFL growth +7.0% (2014: +10.4%) - Footfall growth +9.6% (2014: +8.3%) - Spend per head £11.51 (2014: £11.48)  Accommodation LFL +13.8% (2014: +9.7%) - Occupancy 78% (2014: 76%) - RevPAR* £58 (2014:

  24. Slide 24: Creating demand and building awareness for our brands

    Creating demand and building awareness for our brands  Transitional year with phased exit from Kingfisher contract and portfolio development  Excellent performance from newer brands - Whitstable Bay range +39.6% - Heritage range +4.1% - Sam Adams +23.8%  North America failed to meet expectations

  25. Slide 25: Further evolution of our portfolio

    Further evolution of our portfolio Heritage Core Discovery -15.5% +23.8% +4.1% +39.6% New for 2016

  26. Slide 26: Summary and current trading

    Summary and current trading  Good progress against strategy and strong financial performance  Exciting new additions to our beer and pub portfolio  Positive start to new financial year - LFL growth in Managed pubs and hotels +6.5% to 5 September 2015 - LFL EBITDAR growth in Tenanted pubs +1.8% to

  27. Slide 27: A robust strategic, geographic and financial base from which to continue to grow

    A robust strategic, geographic and financial base from which to continue to grow  New financing structure in place with reduced debt levels  Strong pipeline of developments in existing Managed and Tenanted estate  Beer brand portfolio aligned to growth areas of the market place  Skill base and f

  28. Slide 28: Questions

    eS a Questions

  29. Slide 29: Resolutions

    SHEPHERD NEAME Resolutions

  30. Slide 30: Resolution 1: To receive the Annual Report and Accounts

    Resolution 1 To receive the Annual Report and Accounts

  31. Slide 31: Resolution 1 voting results

    Resolution 1 To receive the Annual Report and Accounts No of No of Shareholders Votes % For + Discretion 275 4,224,981 99.99 Against 1 501 0.01 100.00 Withheld 0 0 28.44% of total votes cast by proxy

  32. Slide 32: Resolution 2: To declare a final dividend

    Resolution 2 To declare a final dividend

  33. Slide 33: Resolution 2 voting results

    Resolution 2 To declare a final dividend No of No of Shareholders Votes % For + Discretion 275 4,225,382 100.00 Against 1 100 0.00 100.00 Withheld 0 0 28.44% of total votes cast by proxy

  34. Slide 34: Resolution 3: Re-election of Graeme Craig

    Resolution 3 To propose the re-election of Graeme Craig as a Director

  35. Slide 35: Resolution 3 voting results

    Resolution 3 To propose the re-election of Graeme Craig as a Director No of No of Shareholders Votes % For + Discretion 274 4,222,826 100.00 Against 1 100 0.00 100.00 Withheld 2 2,566 28.44% of total votes cast by proxy

  36. Slide 36: Resolution 4: Re-election of Mark Rider

    Resolution 4 To propose the re-election of Mark Rider as a Director

  37. Slide 37: Resolution 4 voting results

    Resolution 4 To propose the re-election of Mark Rider as a Director No of No of Shareholders Votes % For + Discretion 274 4,222,842 100.00 Against 2 108 0.00 100.00 Withheld 2 2,558 28.44% of total votes cast by proxy

  38. Slide 38: Resolution 5: Re-election of James Leigh-Pemberton

    Resolution 5 To propose the re-election of James Leigh-Pemberton as a Director

  39. Slide 39: Resolution 5 voting results

    Resolution 5 To propose the re-election of James Leigh-Pemberton as a Director No of No of Shareholders Votes % For + Discretion 269 4,206,184 99.60 Against 6 16,750 0.40 100.00 Withheld 2 2,558 28.44% of total votes cast by proxy

  40. Slide 40: Resolution 6: Re-election of Oliver Barnes

    Resolution 6 To propose the re-election of Oliver Barnes as a Director

  41. Slide 41: Resolution 6 voting results

    Resolution 6 To propose the re-election of Oliver Barnes as a Director No of No of Shareholders Votes % For + Discretion 269 4,205,761 99.59 Against 7 17,173 0.41 100.00 Withheld 2 2,558 28.44% of total votes cast by proxy

  42. Slide 42: Resolution 7: Re-election of Miles Templeman

    Resolution 7 To propose the re-election of Miles Templeman as a Director

  43. Slide 43: Resolution 7 voting results

    Resolution 7 To propose the re-election of Miles Templeman as a Director No of No of Shareholders Votes % For + Discretion 269 4,206,184 99.68 Against 2 13,700 0.32 100.00 Withheld 6 5,608 28.44% of total votes cast by proxy

  44. Slide 44: Resolution 8: Re-appoint Deloitte LLP as Auditor

    Resolution 8 To re-appoint Deloitte LLP as the Auditor and authorise the Directors to fix their remuneration

  45. Slide 45: Resolution 8 voting results

    Resolution 8 To re-appoint Deloitte LLP as the Auditor and authorise the Directors to fix their remuneration No of No of Shareholders Votes % For + Discretion 267 3,999,923 99.64 Against 7 14,568 0.36 100.00 Withheld 3 211,017 28.44% of total votes cast by proxy

  46. Slide 46: Resolution 9: Authority to make market purchases of ordinary shares

    Resolution 9 To authorise the Company to make market purchases of ordinary shares of 50 pence each

  47. Slide 47: Resolution 9 voting results

    Resolution 9 To authorise the Company to make market purchases of ordinary shares of 50 pence each No of No of Shareholders Votes % For + Discretion 269 4,213,393 99.88 Against 3 4,900 0.12 100.00 Withheld 5 7,215 28.44% of total votes cast by proxy

  48. Slide 48: Resolution 10: Adoption of 2015 Restricted Share Scheme

    Resolution 10 To approve the adoption of the Shepherd Neame Ltd 2015 Restricted Share Scheme

  49. Slide 49: Resolution 10 voting results

    Resolution 10 To approve the adoption of the Shepherd Neame Ltd 2015 Restricted Share Scheme No of No of Shareholders Votes % For + Discretion 259 4,194,323 99.49 Against 10 21,648 0.51 100.00 Withheld 9 9,537 28.44% of total votes cast by proxy

  50. Slide 50: Shepherd Neame Ltd AGM 16 October 2015

    BY APPOINTMENT TO: HIS ROYAL HIGHNESS THE PRINCE OF WALES SUPPLIER OF SPECIALIST ORDERS SHEPHERD NEAME LTD FAVERSHAM KENT Shepherd Neame Ltd AGM 16 October 2015

Shepherd Neame — Shareholder Meeting (October 2015) on 6ix