- Migration from T&C to MP pubs can add more revenue and EBITDA per pub and therefore improve credit stats and ultimately valuation. However, this segment also holds more business risk than

charging rent and wholesale distribution of drinks.

- Food is worth more than cigarettes. Being the landlord, Punch has control over rolling out a "restaurant chain" to a captive audience, which should deliver a higher contribution margin than mere alcohol

and cigarettes as well as carry a strong valuation on its own - in addition to the discounted future rent on the estate.

- Reopening: Away from royal turnover, such as jubilees or funerals, especially L&T pubs have been struggling to pass 90% of 2019 orders, reflecting the lasting acceleration the pandemic has brought to

many mega trends.

- The majority of gas contracts were fixed in 2021 through to November 2025. Good timing.

- Strong asset coverage. However, the strategy is to sell assets to fund conversion CapEx. So based on a 3.5 year payback period, asset coverage will drop before a raised EBITDA results in lower leverage.