26 weeks ended Makers of the party spirit since 1996 28 December - PowerPoint PPT Presentation

Revolution Bars Group PLC 26 weeks ended Makers of the party spirit since 1996 28 December 2019

Contents  Headlines  Financial Review  Strategy Update  Summary Makers of the party spirit since 1996

Headlines 3 Revolution Bars Group plc Interim Results – 26 weeks ended 28 December 2019  Adjusted EBITDA ( IAS 17 ) £7.6m, in line with market expectations, up +10.6% on prior year  Like-for-Like sales +1.2% with Q1 LFL growth of +0.7% and +1.7% in Q2 Financial  Seventh consecutive record Christmas* sales - LFL +4.0% (weekly sales per venue over £65k) Performance  Savings assist mitigation of on-going cost headwinds  Continued strong cash generation  Revolución de Cuba achieving strong LFL sales growth  Much improved LFL sales trend at Revolution Trading  Macro environment remains tough – costs still rising with 2020 NLW +6.2% Overview  Bank debt, net of cash, substantially reduced and on target to be below one times adjusted EBITDA ( IAS 17 )  Invest in our team  Invest in our brands / guest experience  Invest in our core estate Strategy  Subject to market conditions, site expansion expected to resume end of FY21 and be largely self-funded * Measured over 4 weeks of Christmas (to 31 December)

LFL Sales 4 Revolution Bars Group plc Trading back in line with Pubs & Bars Market Interim Results – 26 weeks ended 28 December 2019 (Peach) LFL YoY% - RBG v Wet-Led Pubs / Bars LFL Sales YoY% - RBG vs Bars 10% NYE* Wet-Led Pubs Bars 6.5% 5% RBG restated 4.0% 3.9% month 2.8% 2.7% 2.6% 2.6% 2.3% 2.0% 2.0% 3.3% 1.9% 1.7% 1.2% 0.3% 0.6% 1.0% High Street 0.7% 1.9% Bars** (0.1%) (1.1%) 1.1% 0.9% - July August September October November December January February March April May June July August September October November December January (0.6%) (0.2%) 1.1% (0.9%) (1.1%) Linear (RBG 0.0% restated (1.8%) month) (3.6%) (4.3%) (5%) Linear (High (4.6%) (4.8%) Street Bars**) (5.1%) (5.5%) (6.1%) (7.6%) (10%) Source: CGA Peach Business Tracker LFL Sales is Wet & Food sales combined and excludes Misc revenue * NYE falls into W27 FY19, compared with W26 FY18 ** Bars data provided from April 2019, prior to this RBG classed as a "Wet-Led Pub"

LFL Sales 5 Revolution Bars Group plc Revolution stabilised and Revolucion De Cuba strong Interim Results – 26 weeks ended 28 December 2019 FY19 FY19 FY19 FY19 FY20 FY20 Q1 Q2 Q3 Q4 Q1 Q2 (4.0)% (2.9)% +1.2% +1.7% +0.7% (1.8)% (3.1)% (4.1)% (5.0)% FY19 FY19 FY19 FY19 FY20 FY20 Q1 Q2 Q3 Q4 Q1 Q2 (5.6)% (3.4)% (0.4)% Sales (0.3)% (0.6)%  Improving trend from FY19 Q4 (2.3)% (4.6)% (4.8)% continued through to FY20 Q2 (6.5)%  Revolution close to growth FY19 FY19 FY19 FY19 FY20 FY20  Revolución de Cuba performing Q1 Q2 Q3 Q4 Q1 Q2 +0.8% (1.3)% +5.0% strongly +6.0% +3.8% +1.7% (0.1)% (0.3)% (2.6)%

Financial Review CFO Mi Mike e Fos oster er Makers of the party spirit since 1996

FY20 H1 Review 7 Revolution Bars Group plc Adjusted EBITDA up +£0.7m in line with guidance Interim Results – 26 weeks ended 28 December 2019 Summary Income Statement  Total Sales +3.5% with LFL +1.2%  Gross margin up +0.2%pts mainly driven by food IFRS 16* IAS 17 IAS 17 menu changes (Mar 19), more focused offers and FY20 H1 FY20 H1 FY19 H1 YoY new App (Sept 19) allowing direct customer £m £m £m % interaction  Adjusted EBITDA* margin improved by 60bp due to Sales 81.2 81.2 78.5 3.5% improved operational leverage and benefit of cost 3.8% Gross profit 61.8 61.8 59.5 savings Gross profit % 76.1% 76.1% 75.9% 0.2%pt  Adjusted EBITDA* and Adjusted PBT in line with Adjusted EBITDA 12.8 7.6 6.9 10.6% guidance Adjusted EBITDA % 15.8% 9.4% 8.8% 0.6%pt Adjusted PBT 2.9 3.5 2.9 20.7% Adjusted PBT % 3.6% 4.3% 3.7% 0.6%pt Adjusted EPS 5.6p 5.6p 4.2p 1.4p - Dividend per share - - - * The Group adopted IFRS 16 in FY20. IFRS 16 changes the accounting treatment of leases. Prior year comparatives have not been restated. The current period is also shown under IAS17 to provide comparability with prior year. Adjusted EBITDA referenced in the notes refers to IAS 17.

FY20 H1 Review 8 Revolution Bars Group plc Mitigation of cost headwinds Interim Results – 26 weeks ended 28 December 2019 Trading P&L Bridge – H1 v LY (IAS 17 basis) New 1 Closed 2 IAS 17 Basis FY19 H1 LFL FY20 H1 Payroll £m £m £m £m £m  NLW and pension increases inflate rate per Sales 78.5 0.9 2.5 (0.6) 81.3 hour +4.6% +£0.9m Gross profit 59.5 0.8 1.9 (0.4) 61.8  £0.5m payroll cost mitigation from labour scheduling and Work-smart initiatives Venue payroll (20.5) (0.4) (0.7) 0.2 (21.4)  NLW increase in April 2020 +6.2%! Other venue costs 0.5 (0.6) 0.2 (18.3) (18.2) Other costs Venue rates (0.1) (0.2) - (3.7) (4.0)  Other venue costs LFL £0.5m lower Venue EBITDAR 17.0 0.8 0.4 - 18.2  Savings in local marketing, cleaning, network Venue rent - (0.2) - (5.5) (5.7) communications, cash collection and card payment charges Venue EBITDA 11.5 0.8 0.2 - 12.5 Venue EBITDA New 1 Closed 2 Cost KPIs % of Sales FY19 H1 LFL FY20 H1  15.4% of sales, up from 14.6% Gross profit % 75.8% 76.2% 75.4% n/a 76.0%  Returns from FY19 openings expected to Venue payroll 26.1% 26.0% 29.0% n/a 26.3% improve as they mature Other venue costs 35.1% 34.0% 37.6% n/a 34.3% Venue EBITDA 14.6% 16.2% 8.8% n/a 15.4% 1. New sites are 5 openings from FY19 2. Closed sites: Swansea, Wood Street in Liverpool, and Macclesfield, all closed in period under review

FY20 H1 Review 9 Revolution Bars Group plc EBITDA margin Interim Results – 26 weeks ended 28 December 2019 Adjusted EBITDA by segment Number FY20 FY19 YoY of H1 H1  LFL sales +1.2% Venues £m £m £m ‒ LFL includes pre-IPO venues +£0.1m 'Like for Like' Estate EBITDA 68 12.2 11.4 0.8 ‒ FY16 and FY17 +£0.2m FY19 openings (prior year) 5 0.5 0.3 0.2 ‒ FY18 +£0.5m FY20 H1 closures 3 (0.2) (0.2) -  New space contributes incremental £0.2m Venue EBITDA 76 12.5 11.5 1.0  Support centre increased by £0.3m but at Support Centre costs (4.9) (4.6) (0.3) 5.9% sales is better than FY19 H1: 6.0%  Adjusted EBITDA margin improved by 60bp Adjusted EBITDA 7.6 6.9 0.7  Improved operational leverage Adjusted EBITDA % of Sales 9.4% 8.8% 0.6%pt

FY20 H1 Review 10 Revolution Bars Group plc Cash generative business Interim Results – 26 weeks ended 28 December 2019 Summary Cash Flow Cash flow FY20 FY19 H1 H1  Cash generative business £m £m  Capex – existing estate made up of: Adjusted EBITDA 7.6 6.9 FY20 FY19 Release of onerous lease provision (0.6) (0.5) H1 H1 Refurbishments 1.4 0.6 Working capital movement 2.1 1.8 Equipment Replacement 1.0 1.4 IT - Other Central 0.5 0.6 Capex - existing estate (2.9) (2.6) Capex - existing 2.9 2.6 Cash generated - existing business 6.2 5.6  £6.9m capex – expansion last year includes £1.2m of bar opening costs Capex - expansion - (6.9)  Bar closures and lease surrenders relate to 3 Bar closures and lease surrenders (0.4) - Revolution closures in first half (Wood St, Liverpool, Tax 0.1 - Swansea and Macclesfield) Financing - dividends & interest (0.4) (2.0)  Suspension of expansion Capex and dividends has allowed £6.0m repayment of RCF facility Net cash flow 5.5 (3.3) Bank loan (repayment) / draw down (6.0) 3.0 FY20 FY19 FY19 H1 H1 H2 RCF Facility (11.5) (18.5) (17.5) Net cash movement (0.5) (0.3) Cash & equivalents * 3.1 3.7 2.6 Bank debt net of cash (8.4) (14.8) (14.9)

FY20 H1 Review 11 Revolution Bars Group plc Post balance sheet event Interim Results – 26 weeks ended 28 December 2019 Lease Surrenders  Shortly after the end of the Lease Surrenders Closure Lease Run rate Onerous Reported Lease exit date surrender EBITDA lease profit cost reporting period, the Group losses provision impact exchanged contracts to (cash) release IAS 17 surrender leases at five loss- £m £m £m £m making sites at cost of £3.6m Macclesfield Nov-19 Nov-19 0.2 (0.1) 0.1 0.3  This brings the total number of Aprirose - 5 leases Mar-20 1.1 (0.8) 0.3 3.6 lease surrenders this financial year to six for a cost Wood St, Liverpool Aug-19 consideration of £3.9m that will Lincoln Jan-20 bring an annualised cash Fallowfield, Manchester Jan-20 benefit to the Group of £1.3m Wolverhampton FY15  We continue to manage our Lancaster FY15 estate to optimise value Full year impact (IAS 17) 1.3 (0.9) 0.4 3.9 creation for our stakeholders IFRS 16 measurement 0.4 nil 0.4 Notes  Macclesfield lease surrendered at end of November 2019 (completed)  Aprirose lease surrenders exchanged and expected to complete at March 20 rent quarter day  Under IFRS 16, EBITDA does not include rent charges and the onerous lease is retired on transition