Capital Markets Day

Marston's, a leading UK operator of 1,339 pubs, is today hosting its 2024 Capital Markets Day.

Management will outline the Group's growth and financial strategy, including providing new near and medium-term financial targets. A recording will be available on the Marston's plc website at https://www.marstonspubs.co.uk/investors/results-presentations/ following the event.

Strategic update and new near & medium-term financial targets

Marston's Management team will present the Group's strategy as a leading pure play hospitality business. The updated strategy will drive a high-margin, highly cash-generative local pub company based on differentiated formats, and a brand portfolio that is naturally balanced to appeal across a range of consumer segments.

The delivery of this strategy will centre on five key value drivers;

• Executing a market leading operating model
• Targeted investment to create five differentiated pub formats
• Digital transformation
• Expansion of managed & partnership models
• Leveraging Marston's synergies in targeted M&A

Our strategy will ensure we drive guest demand and deliver amazing pub experiences whilst maintaining our focus on best-in-class operations and cost efficiencies to expand the Group's profitability and cash generation profile.

As a result, in the near to medium term we expect to deliver:

• Revenue growth ahead of the market1
• EBITDA margin expansion of 200-300 basis points
• Over £50 million recurring free cash flow2
• >30% ROIC on investment focused capex

The delivery of the strategy and financial targets are underpinned by a strong balance sheet, with no material refinancing requirement for at least 10 years, and a disciplined capital allocation framework focused on enhancing shareholder value.

Justin Platt, Chief Executive of Marston's, said:

"Marston's is embarking on a new and exciting chapter as a pure play hospitality business. At today's CMD we are outlining a differentiated strategy for growth that is anchored in the needs of our guests and focused on driving sustained value for our shareholders.

With a relentless focus on delivering amazing pub experiences, Marston's has a real opportunity to drive significant, incremental value in the coming years. We are very excited by the opportunities that lie ahead."

[1] Market is forecast to grow at 3% CAGR, according to Mintel.

2 Free cash flow is cash flow after capex before debt repayments and excluding disposals.