Mitchells & Butlers Plc · LSE:MAB
Mitchells & Butlers — Shareholder Meeting (January 2011)
11 slides from Mitchells & Butlers's shareholder meeting presentation, Jan 27, 2011
Slide 1: Mitchells & Butlers Plc Annual General Meeting
Mitchells & Butlers Plc Annual General Meeting 27 January 2011
Slide 2: Strategic review progress
Strategic review progress Targeted area Reshape to food-led business 9 Price sensitive drinks-led pubs withdrawal 9 Improve operating margins 9 Improve returns on capex 9 Address pension funding & reduce net debt 9 Operations and property disclosure 9 Address incentive schemes and culture 9 Excellen
Slide 3: Income statement
Income statement 52 weeks ended 25 September 2010 FY09 FY10 £m £m Revenue 1,958 1,980 +1.1% EBITDA 428 449 +4.9% Operating profit 300 322 +7.3% Interest (166) (153) PBT pre exceptionals 134 169 +26.1% EPS (pre exceptionals) 23.6p 29.7p +25.8% Strong margin growth driving profits increase 3
Slide 4: Operational delivery
Operational delivery Guest satisfaction +2% pts Food & drink waste reduction of £5m NVQs 3,100 complete or in progress Management turnover reduced by 4% Productivity: contribution per staff hour up 2% Continuing focus on service, productivity & efficiency Retained Estate 4
Slide 5: Advertising to grow awareness
Advertising to grow awareness 5 week TV campaign in each brand Significant sales and volume uplifts Average pay-back within 6 weeks Broadcast advertising only viable for strong national brands 5
Slide 6: Returns on expansionary capital
Returns on expansionary capital EBITDA returns increasing*: FY08: 18% FY09: 23% FY10: >30% Drivers have been Lower capital intensity Trading performance Improving returns on expansionary capital * Retained Estate, expansionary investments made over 2 years Expansionary capital excluding Whitbread ac
Slide 7: Expansion pipeline
Expansion pipeline 54 conversions, 1 new opening in FY10 70 conversions, 50 new openings in FY11 FY11 openings enabled by site redesign Retail & leisure locations enable faster build of pipeline 7
Slide 8: Recent trading
Recent trading FY10 FY11 Total 17 weeks Food 4.7% 6.1% Drinks 1.4% 0.9% Total 2.8% 3.1% Continued strong trading Retained Estate 8
Slide 9: Outlook
Outlook VAT increase Jan 2011 Fragile consumer outlook: taxation & unemployment Eating-out market: continued low growth Cost pressures balanced Confident in future profit growth 9
Slide 10: Conclusion
Conclusion Excellent progress against strategy New management team established Strong balance sheet: net debt/EBITDA of 5x Business performing well in challenging conditions Well positioned for future growth 10
Slide 11: Mitchells & Butlers Plc Annual General Meeting
Mitchells & Butlers Plc Annual General Meeting 27 January 2011
Mitchells & Butlers — Shareholder Meeting (January 2011) on 6ix