Slide 1: J D Wetherspoon PLC Preliminary Results
J D Wetherspoon PLC Preliminary Results 6 October 2023 John Hutson – CEO Ben Whitley - FD
Slide 2: The Stargazer, O2
The Stargazer, O2
Slide 3: Financial Summary
Financial Summary 20233 20222,3 Var% 20213 2020 2019 2018 20172 2016 2015 2014 Revenue 1,925.0 1,740.5 10.6% 772.6 1,262.0 1,818.8 1,693.8 1,660.8 1,595.2 1,513.9 1,409.3 (£ million) Like-for-like sales +12.7% -4.7% -38.4% -29.5% +6.8% +5.0% +4.0% +3.4% +3.3% +5.5% (vs 2022) (vs 2019) Profit/(loss)
Slide 4: Average Weekly Sales Per Pub (including VAT)
Average Weekly Sales Per Pub (including VAT) £000 53.0 54 52 48.0 50 46.5 48 45.3 44.4 46 44 41.7 42 39.0 40 37.4 36.0 38 34.1 36 34 32 30 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 • Financial years 2020, 2021 and 2022 were impacted from a VAT reduction during the COVID-19 pandemic (15 July
Slide 5: Underlying earnings/(losses) Per Share (pence)
Underlying earnings/(losses) Per Share (pence)1,2 pence 76.5 70.2 80.0 66.6 70.0 48.0 60.0 47.6 43.8 50.0 24.7 40.0 30.0 20.0 10.0 0.0 -10.0 -20.0 -21.3 -30.0 -40.0 -35.9 -50.0 -60.0 -70.0 -80.0 -90.0 -100.0 -110.0 -120.0 -119.1 -130.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1 Underlying e
Slide 6: Like-for-like Performance
Like-for-like Performance 2023 20222 2021 % (vs 2022) (vs 2019) (vs 2020) 2020 2019 2018 20172 2016 2015 2014 Bar +9.0 -6.5 -42.2 -29.3 +5.8 +5.1 +3.1 +3.3 +1.2 +2.7 Food +17.7 -3.2 -37.4 -30.1 +8.3 +5.1 +5.7 +3.5 +7.3 +12.0 Fruit/slot machines +26.4 +12.3 -52.1 -20.9 +10.3 +2.9 -1.2 -2.8 -2.8 -3.1
Slide 7: 10 Year Operating Profit
10 Year Operating Profit £ million 20232 20221,2 20212 2020 2019 2018 20171 2016 2015 2014 Turnover 1,925.0 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 Pub profit (pre repairs) 373.4 295.8 131.5 214.2 349.7 338.6 330.6 288.3 285.4 284.4 Repairs (94.0) (100.7) (63.3) (75.9)
Slide 8: Allocation of Resources
Allocation of Resources Dividend Reinvestment in business and IT £13m projects £15m £14m £8m Freehold reversions and £10m £1m investment properties £15m £13m £14m Share buybacks £24m £7m £5m £5m £22m £16m £13m £25m £89m £7m Capex on new and £36m £13m £98m existing pubs £52m £3m £77m £54m £26m £28m £
Slide 9: Cash Capital Expenditure
Cash Capital Expenditure £ million 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 New Openings: Acquisition and development costs: Current year 10.0 26.2 11.5 18.6 19.8 32.0 27.2 38.6 76.5 64.5 Future year 10.4 24.9 9.6 31.8 7.5 14.4 13.1 16.6 30.5 33.2 Freehold reversions and investment properti
Slide 10: Movement in Net Debt
Movement in Net Debt £ million 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Opening Net debt 891.6 845.5 817.0 737.0 726.2 696.3 650.8 601.1 556.6 474.2 Free cash flow (271.1) (21.9) 83.3 58.9 (97.0) (93.4) (107.9) (90.5) (109.8) (92.9) Disposal of fixed assets (11.3) (10.5) (2.6) (4.8) (9.3) (
Slide 11: 10 Year Debt Overview
10 Year Debt Overview £ million 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Net Debt 642 892 846 817 737 726 696 651 601 557 Trade and other payables 329 282 260 255 308 291 314 267 283 243 Net Debt + Trade and other 971 1,174 1,105 1,072 1,045 1,017 1,010 918 884 800 payables Number of freeho
Slide 12: Property Update
Property Update 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Trading pubs at start of year 852 861 872 879 883 895 926 951 927 886 Freehold pubs opened – 7 4 2 4 6 9 10 24 31 Leasehold pubs opened 3 – 1 – 1 – 1 6 6 15 Sold or closed pubs (29) (16) (16) (9) (9) (18) (41) (41) (6) (5) Total tradi
Slide 13: People and standards
People and standards Financial Bonus and Profit/(loss) Bonus and • Average pub manager length of service is 14.4 years (FY22: 13.9 years) year free shares after tax free shares as • Average kitchen manager length of service is 10.7 years (FY22: 10.4 years) £m £m % of profits 2007 19 47 41% • 213 pub
Slide 14: CGA Brandtrack research – August 2023
CGA Brandtrack research – August 2023 JDW continues to rank as the most visited licensed brand seeing a steady increase in consumer base compared to last year % change in consumers Top 6 licensed brands in GB Consumers visited Q2 2023 compared to Q2 2022 JD Wetherspoon 21.4 million +4% Nando's 11.1
Slide 15: CGA Brandtrack research – August 2023
CGA Brandtrack research – August 2023 JDW is also the most well-known licensed brand, and over 50% of those aware of JDW visited in the last 6 months of 2023 Conversion Awareness Usage rate Nando’s 84% 23% 27% Greene King 61% 22% 36% 45% Usage Toby 53.0% 75% 21% 28% Carvery Conversion rate 85% Harve
Slide 16: ESG (Environmental, social and governance)
ESG (Environmental, social and governance)) Wetherspoon is committed to operating ethically and sustainably Targets Achievements to date Submission now made to Science Based Targets Initiative Scope 1 and 2 emissions reduction The company has reduced scope 1 and 2 emissions (Tonnes CO2e) by 46
Slide 17: Changing sales mix since 2000
Changing sales mix since 2000 100% 6% 5% 4% 3% 3% 3% 90% 18% 25% 80% 29% 37% 36% 39% 70% 60% Hotel 50% Machines Food 40% 76% Bar (17.2k) 70% (19.7k) 66% (19.8k) 59% 60% 30% 57% (22.2k) (28.1k) (30.1k) 20% 10% 0% 2000 2005 2010 2015 2020 2023 16 *Average sales per week
Slide 18: Taxation
Taxation* TOTAL 20231 20221 20211 2020 2019 2018 2017 2016 2015 2014 2014 to 2023 £m £m £m £m £m £m £m £m £m £m £m VAT 372.3 287.7 93.8 244.3 357.9 332.8 323.4 311.7 294.4 275.1 2,893.4 Alcohol duty 166.1 158.6 70.6 124.2 174.4 175.9 167.2 164.4 161.4 157.0 1,519.8 PAYE and NIC 124.0 141.9 101.5 106
Slide 19: Current Trading and Outlook
Current Trading and Outlook • Like-for-like sales in the first nine weeks of the current financial year were 9.9% higher than the same weeks in FY23 • Prospects have improved: – Positive sales momentum – Good profit growth year-on-year – The company owns 70% of its pubs – Debt has reduced substantia
Slide 20: Questions
Questions
Slide 21: Appendices
Appendices The Packet Station, Falmouth
Slide 22: Appendices
Appendices •A 10 year overview •B Summary of separately disclosed items • C1 ROC/CROCCE/ROE calculations • C2 ROC/CROCCE/ROE calculations 21
Slide 23: 10 Year Overview
Appendix A 10 Year Overview £ million Turnover Number of pubs 1000 2,000 950 1,800 900 1,600 850 1,400 800 1,925 927 951 1,819 926 1,200 1,694 1,740 750 895 883 879 1,595 1,661 872 861 852 1,514 826 1,409 700 1,000 1,262 650 800 773 600 600 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 2015
Slide 24: Summary of separately disclosed items
Appendix B Summary of separately disclosed items 2023 2022 £000 £000 Operating separately disclosed items Rank settlement - (27,771) Local government support grants (54) (1,443) Duty drawback - (170) Other Operating costs 1,076 - Separately disclosed operating costs 1,022 (29,384) Disposal of pubs 9
Slide 25: ROC/CROCCE/ROE
Appendix C1 ROC/CROCCE/ROE 2023 2022 £000 £000 Shareholders equity per accounts 399,458 321,855 Deferred tax balances (65,752) (34,718) Interest rate swaps valuations 11,866 59,336 Impairment balances 110,907 72,620 Net book value of revalued assets (2,960) (3,687) Adjusted shareholders equity (a) 4
Slide 26: ROC/CROCCE/ROE
Appendix C2 ROC/CROCCE/ROE 2023 2022 £000 £000 EBITDA (cash return) 2 (e) 218,887 144,732 Depreciation and amortisation (f) (109,594) (116,870) EBIT (g) 109,293 27,862 Interest (66,734) (58,310) Loss before tax 42,559 (30,448) Current tax (h) - (22) Profit/ (loss) after cash tax (i) 42,559 (30,470)
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