Richard North Richard North Chief Executive Chief Executive 1 - - PowerPoint PPT Presentation

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Richard North Richard North

Chief Executive Chief Executive

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Richard Solomons Richard Solomons

Finance Director Finance Director

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Pro forma Group Results ( Pro forma Group Results (£ £) ) Turnover Turnover Down Down 3.4% 3.4% EBITDA EBITDA Down Down 14.5% 14.5% Operating Profit Operating Profit Down Down 27.4% 27.4% Profit Before Tax Profit Before Tax Down Down 30.8% 30.8% Earnings per share Earnings per share Down Down 32.1% 32.1%

Results Results 6 months to 30 June 2003 6 months to 30 June 2003

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Operating Profit £ £m m Hotels Hotels 86 86 Down Down 31.7% 31.7% Soft Drinks Soft Drinks 39 39 Up Up 14.7% 14.7%

Results Results 6 months to 30 June 2003 6 months to 30 June 2003

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Owned & Leased Estate RevPAR Owned & Leased Estate RevPAR 6 months to 30 June 2003 6 months to 30 June 2003

RevPAR% Growth

• 40.0%
• 35.0%
• 30.0%
• 25.0%
• 20.0%
• 15.0%
• 10.0%
• 5.0%

0.0% 5.0% 10.0% 15.0%

Jan Feb Mar Apr May Jun Americas EMEA Asia Pacific

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Operating Profit Performance Operating Profit Performance 6 months to 30 June 2003 6 months to 30 June 2003

Hotels revenue £62m lower Key factors affecting profit flow-through:

Occupancy Depreciation Insurance

Hotels operating profit £40m lower

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Americas

• Owned & Leased

13 12 8.3

• Managed & Upscale Franchised

12 11 9.1

• Midscale Franchised

57 57

• Total Americas

82 80 2.5 EMEA

• Owned & Leased

22 39 (43.6)

• Managed & Franchised

8 9 (11.1) Total EMEA 30 48 (37.5) Asia Pacific (3) 9

• FelCor & Other
• 2
• Central Overheads and Marketing

(20) (23) 13.0 Goodwill Amortisation (3) (3)

• Total Operating Profit

86 113 (23.9) Total Operating Profit £m 53 77 (31.2) Total EBITDA £m 91 112 (18.8)

Operating Profit Operating Profit 3 months to 30 June 2003 3 months to 30 June 2003

3 mths to 3 mths to 30 Jun 03 30 Jun 03 3 mths to 3 mths to 30 Jun 02 30 Jun 02 %

$m $m

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Americas

• Owned & Leased

13 13

• Managed & Upscale Franchised

19 20 (5.0)

• Midscale Franchised

102 100 2.0 Total Americas 134 133 0.8 EMEA

• Owned & Leased

31 59 (47.5)

• Managed & Franchised

18 20 (10.0) Total EMEA 49 79 (38.0) Asia Pacific 5 20 (75.0) FelCor & Other 1 5 (80.0) Central Overheads and Marketing (44) (49) 10.2 Goodwill Amortisation (6) (6)

• Total Operating Profit

139 182 (23.6) Total Operating Profit £m 86 126 (31.7) Total EBITDA £m 162 194 (16.5)

6 mths to 6 mths to 30 Jun 03 30 Jun 03 6 mths to 6 mths to 30 Jun 02 30 Jun 02 %

$m $m

Operating Profit Operating Profit 6 months to 30 June 2003 6 months to 30 June 2003

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Americas Americas InterContinental Owned & Leased InterContinental Owned & Leased RevPAR Performance RevPAR Performance

Source: IHG & Smith Travel data

InterContinental O&L Upper Upscale Segment

RevPar % Growth

(10.4%) 0.0% 10.0% Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03

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3 mths to 3 mths to 3 mths to 3 mths to 6 mths to 6 mths to

RevPAR Movement RevPAR Movement

31 Mar 03 31 Mar 03 30 Jun 03 30 Jun 03 30 Jun 03 30 Jun 03

InterContinental InterContinental 1.8% 1.8% 2.9% 2.9% 2.2% 2.2%

Operating profit flat at $13m Operating profit flat at $13m Americas Americas Owned & Leased Owned & Leased

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3 mths to 3 mths to 3 mths to 3 mths to 6 mths to 6 mths to

RevPAR Movement RevPAR Movement

31 Mar 03 31 Mar 03 30 Jun 03 30 Jun 03 30 Jun 03 30 Jun 03

InterContinental Managed InterContinental Managed (24.1%) (24.1%) (11.8%) (11.8%) (18.0%) (18.0%) Crowne Plaza Managed Crowne Plaza Managed (3.0%) (3.0%) (14.5%) (14.5%) (9.4%) (9.4%) Crowne Plaza Franchised Crowne Plaza Franchised (1.3%) (1.3%) (5.2%) (5.2%) (3.5%) (3.5%)

Operating profit down $1m to $19m Operating profit down $1m to $19m Americas Americas Managed & Upscale Franchise Managed & Upscale Franchise

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Americas Americas -

• Express Franchise

Express Franchise RevPAR Performance RevPAR Performance

(10.0%) 0.0% 10.0% Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03

RevPAR % Growth

Express Brands Midscale without F&B Segment

Source: IHG & Smith Travel data

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Americas Americas -

• Holiday Inn Franchise

Holiday Inn Franchise RevPAR Performance RevPAR Performance

(10.0%) 0.0% 10.0% Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03

Holiday Inn Brands Midscale with F&B Segment

Source: IHG & Smith Travel data

RevPAR % Growth

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3 mths to 3 mths to 3 mths to 3 mths to 6 mths to 6 mths to

RevPAR Movement RevPAR Movement

31 Mar 03 31 Mar 03 30 Jun 03 30 Jun 03 30 Jun 03 30 Jun 03

Holiday Inn Holiday Inn (2.0%) (2.0%) (4.9%) (4.9%) (3.7%) (3.7%) Express Express (0.6%) (0.6%) (0.5%) (0.5%) (0.6%) (0.6%)

Operating profit up $2m to $102m Operating profit up $2m to $102m

6 months to 30 Jun 03 Holiday Inn Holiday Inn Express Express

Increase in royalty rate Increase in royalty rate 0.05% pts 0.05% pts

• Change in number of

Change in number of (1.7%) (1.7%) 8.0% 8.0% rooms available rooms available

Americas Americas Midscale Franchise Midscale Franchise

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6 mths to 6 mths to 6 mths to 6 mths to 30 Jun 03 30 Jun 03 30 Jun 02 30 Jun 02 %

US Dollar US Dollar $m $m $m $m Total Operating Profit Total Operating Profit 49 49 79 79 (38.0) (38.0) Sterling Sterling £m £m £m £m Owned & Leased Owned & Leased 19 19 41 41 (53.7) (53.7) Managed & Franchised Managed & Franchised 11 11 14 14 (21.4) (21.4) Total Operating Profit Total Operating Profit 30 30 55 55 (45.5) (45.5)

EMEA EMEA Operating Profit Operating Profit

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3 mths to 3 mths to 3 mths to 3 mths to 6 mths to 6 mths to

RevPAR Movement RevPAR Movement

31 Mar 03 31 Mar 03 30 Jun 03 30 Jun 03 30 Jun 03 30 Jun 03

InterContinental InterContinental (6.1%) (6.1%) (15.5%) (15.5%) (11.5%) (11.5%) Crowne Plaza Crowne Plaza (1.6%) (1.6%) (5.4%) (5.4%) (3.7%) (3.7%) Holiday Inn Holiday Inn (1.0%) (1.0%) (6.2%) (6.2%) (3.8%) (3.8%)

Operating profit down £22m to £19m Operating profit down £22m to £19m EMEA Owned & Leased EMEA Owned & Leased

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EMEA Holiday Inn UK EMEA Holiday Inn UK RevPAR Performance RevPAR Performance

(30.0%) (20.0%) (10.0%) 0.0% 10.0% 20.0% Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03

RevPAR % Growth

Regions Holiday Inn Regions Hotel Benchmark Segment London Holiday Inn London Hotel Benchmark Segment

Source: IHG & Hotel Benchmar k data

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Operating profit down £3m to £11m Operating profit down £3m to £11m EMEA Managed & Franchised EMEA Managed & Franchised

3 mths to 3 mths to 3 mths to 3 mths to 6 mths to 6 mths to

RevPAR Movement RevPAR Movement

31 Mar 03 31 Mar 03 30 Jun 03 30 Jun 03 30 Jun 03 30 Jun 03

InterContinental Managed InterContinental Managed (4.0%) (4.0%) (17.3%) (17.3%) (10.8%) (10.8%) Holiday Inn Franchised Holiday Inn Franchised 1.1% 1.1% (1.9%) (1.9%) (0.5%) (0.5%) Express Franchised Express Franchised (2.2%) (2.2%) (5.8%) (5.8%) (4.3%) (4.3%)

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3 mths to 3 mths to 3 mths to 3 mths to 6 mths to 6 mths to

RevPAR Movement RevPAR Movement

31 Mar 03 31 Mar 03 30 Jun 03 30 Jun 03 30 Jun 03 30 Jun 03

IC Hong Kong IC Hong Kong 2.7% 2.7% (90.2%) (90.2%) (46.0%) (46.0%) Managed Managed 3.4% 3.4% (31.6%) (31.6%) (14.7%) (14.7%)

Operating profit down $15m to $5m Operating profit down $15m to $5m Asia Pacific Asia Pacific

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Operating Profit Operating Profit 6 months to 30 June 2003 6 months to 30 June 2003

Americas

• Owned & Leased

13 13

• Managed & Upscale Franchised

19 20 (5.0)

• Midscale Franchised

102 100 2.0 Total Americas 134 133 0.8 EMEA

• Owned & Leased

31 59 (47.5)

• Managed & Franchised

18 20 (10.0) Total EMEA 49 79 (38.0) Asia Pacific 5 20 (75.0) FelCor & Other 1 5 (80.0) Central Overheads and Marketing (44) (49) 10.2 Goodwill Amortisation (6) (6)

• Total Operating Profit

139 182 (23.6) Total Operating Profit £m 86 126 (31.7) Total EBITDA £m 162 194 (16.5)

6 mths to 6 mths to 30 Jun 03 30 Jun 03 6 mths to 6 mths to 30 Jun 02 30 Jun 02 %

$m $m

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Volume up 3.2% Turnover up 8.1% to £335m Profit margins increased Operating Profit up 14.7%

Operating profit up £5m to £39m Operating profit up £5m to £39m

Britvic Soft Drinks Britvic Soft Drinks

Results for the 28 weeks to 5 July 2003 Results for the 28 weeks to 5 July 2003

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EBITDA EBITDA 213 213 249 249 (14.5) (14.5) Operating profit Operating profit 114 114 157 157 (27.4) (27.4) Interest Interest (22) (22) (24) (24) 8.3 8.3 Profit before tax Profit before tax 92 92 133 133 (30.8) (30.8) Tax Tax (23) (23) (38) (38) 39.5 39.5 Minority interests Minority interests (13) (13) (13) (13)

• Retained Profit

Retained Profit 56 56 82 82 (31.7) (31.7) Earnings per share (pence) Earnings per share (pence) 7.6 7.6 11.2 11.2 (32.1) (32.1)

6 mths to 6 mths to 30 Jun 02 30 Jun 02 Growth Growth %

£m £m

Group Pro Forma Group Pro Forma Profit & Loss Account Profit & Loss Account

6 mths to 6 mths to 30 Jun 03 30 Jun 03

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Operating profit Operating profit 114 114 Depreciation / Amortisation Depreciation / Amortisation 99 99 Working capital / Other Working capital / Other 25 25 Capital expenditure (net) Capital expenditure (net) (140) (140) Operating cash flow Operating cash flow 98 98

£m £m

Group Pro Forma Group Pro Forma Cash Flow Cash Flow

6 mths to 6 mths to 30 Jun 03 30 Jun 03

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Group Balance Sheet Group Balance Sheet

£m 30 June 03 30 June 03 31 Dec 02* 31 Dec 02*

Tangible assets Tangible assets 4,467 4,467 4,383 4,383 Intangible assets Intangible assets 157 157 157 157 Working capital Working capital (42) (42) (22) (22) Long Long-term liabilities term liabilities (156) (156) (160) (160) Net operating assets Net operating assets 4,426 4,426 4,358 4,358 Net debt Net debt (942) (942) (1,033) (1,033) Other non Other non-operating liabilities

• perating liabilities

(935) (935) (921) (921) Net assets Net assets 2,549 2,549 2,404 2,404

* Pro forma * Pro forma

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Confirmation of dividend intent stated in the Listing

Particulars of 13.5p per share for 2003

Interim dividend of 4.05p for calendar 2003 payable

14 October 2003

Proposed final dividend of 9.45p payable June 2004

Dividends Dividends

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Summary Summary

Trading environment remains uncertain Our brands continue to perform well Britvic continues to produce excellent results Aggressive financial management Improved net debt position

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Richard North Richard North

Chief Executive Chief Executive

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Driving Returns and Free Cash Flow Driving Returns and Free Cash Flow Improved Improved ROCE and ROCE and Free Cash Free Cash Flow Flow

Reduced overhead costs Reduced overhead costs Lower capital intensity Lower capital intensity Driving revenue Driving revenue

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Driving Revenue: System Delivery Driving Revenue: System Delivery PCR enrolments PCR enrolments

1.8 million new Priority Club

members enrolled in 6 months to June 2003

Total membership base now

• ver 17 million

InterContinental shows fastest

growth

28% rooms now booked by

PCR members, up from 24%

1.2 1.2 1.8 1.8 6m to Jun 02 6m to Jun 02 6m to Jun 03 6m to Jun 03

Enrolments (millions) Enrolments (millions)

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Driving Revenue: System Delivery Driving Revenue: System Delivery Channel Optimisation Channel Optimisation

System delivery up from 24% to

30%

Web delivery now accounts for

9.0% of bookings, up from 5.6% last year

CRO conversion rates

increased and activity moved to lower cost markets

Change in CRO Call Volumes Change in CRO Call Volumes and Revenues and Revenues

Jan Jan - Jun 2003 Jun 2003

+ $17m

• 1m
• 10%

10%

• 8%

8%

• 6%

6%

• 4%

4%

• 2%

2% 0% 0% 2% 2% 4% 4% 6% 6% Change in Call Change in Call Volumes Volumes Change in Call Change in Call Revenues Revenues

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EMEA EMEA

Particularly hard hit by:

Disproportionate exposure to US traveller Concentration in key gateway cities affected by the

depressed euro zone economy

Depreciation charges increased due to refurbs without

associated market recovery Actions underway

New EMEA leadership team fully in place Aligning profit and revenue ownership in the divisions Individual units now at the heart of the organisation A drive for quality and customer satisfaction

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Reduced Overhead Costs: Reduced Overhead Costs: Annualised Savings Annualised Savings

Positions Positions eliminated eliminated 381 381 597 597 Cost savings primarily

headcount related

Result primarily from

ending of EMEA consultation period allowing further redundancies

On target for $75m

annualised savings by Dec 2003 and at least $100m by Dec 2004

39 39 61 61 May May August August $m, Annualised $m, Annualised

33

Lower Capital Intensity: Lower Capital Intensity: Sale of 16 Staybridge Suites Sale of 16 Staybridge Suites $185m sales price; over $15m above book value Decision Decision -

• Sold with flag

Sold with flag

Financial: Financial:

Current

Current

Potential

Potential

Strategic: Strategic:

Brand defining

Brand defining

Key location

Key location No No – all assets built to same design all assets built to same design No No – Geographic strength already established in the US Geographic strength already established in the US Relatively unaffected by downturn, and still in ramp Relatively unaffected by downturn, and still in ramp-up up Ramp Ramp-up growth incorporated in deal, incentive fees up growth incorporated in deal, incentive fees ensure IHG benefits from any economic recovery ensure IHG benefits from any economic recovery

34

Lower Capital Intensity: Lower Capital Intensity: Sale of InterContinental May Fair Sale of InterContinental May Fair £115m sale price; £400k per room Decision: Sold free and clear Decision: Sold free and clear

Financial: Financial:

Current

Current

Potential

Potential

Strategic: Strategic:

Brand defining

Brand defining

Key location

Key location No No – in need of major refurbishment in need of major refurbishment Yes Yes – but two other InterContinental hotels in London but two other InterContinental hotels in London Property tired, in need of substantial capex and was due Property tired, in need of substantial capex and was due to be closed for a year to be closed for a year Yes, if full capex spent, but this was built into price Yes, if full capex spent, but this was built into price

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Innovation success with strong pipeline

Britvic J2O up 114% Robinsons Fruit Shoot up 64%

Continued investment in core brands

Successful re-launch of Tango

Britvic Britvic

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Apr Apr May May Jun Jun Jul Jul Aug Aug

Americas Americas

InterContinental (Owned & Leased) InterContinental (Owned & Leased) (1.0%) (1.0%) 2.4% 2.4% 7.2% 7.2% 9.5% 9.5% 5.2% 5.2% Crowne Plaza Crowne Plaza (12.7%) (12.7%) (8.9%) (8.9%) (5.6%) (5.6%) (0.2%) (0.2%) (3.3%) (3.3%) Holiday Inn Holiday Inn (8.3%) (8.3%) (4.0%) (4.0%) (3.9%) (3.9%) 1.1% 1.1% (1.1%) (1.1%) Holiday Inn Express Holiday Inn Express (2.7%) (2.7%) (0.2%) (0.2%) (0.2%) (0.2%) 3.4% 3.4% 2.7% 2.7%

EMEA EMEA

InterContinental (Owned & Leased) InterContinental (Owned & Leased) (32.8%) (32.8%) (9.0%) (9.0%) (6.9%) (6.9%) (7.4%) (7.4%) (7.9%) (7.9%) Holiday Inn UK Regions Holiday Inn UK Regions (3.5%) (3.5%) (3.1%) (3.1%) 11.8% 11.8% 1.9% 1.9% 8.7% 8.7% Holiday Inn UK London Holiday Inn UK London (23.9%) (23.9%) (20.7%) (20.7%) (3.2%) (3.2%) (7.0%) (7.0%) 1.6% 1.6%

Current Trading Current Trading RevPAR 2003 vs 2002 RevPAR 2003 vs 2002

37

Summary Summary Improved Improved ROCE and ROCE and Free Cash Free Cash Flow Flow

Reduced overhead costs Reduced overhead costs Lower capital intensity Lower capital intensity Driving revenue Driving revenue

Supplementary Information

2

InterContinental Hotels - RevPAR Ow ned/Leased & Managed 3 Months to 30 June 2003

Owned & Leased Managed

Occ % ADR RevPAR Occ % ADR RevPAR

2003 Growth 2003 Growth 2003 Growth 2003 Growth 2003 Growth 2003 Growth InterContinental 69.1% 4.1% 160.97 (3.2%) 111.17 2.9% 48.7% (1.9%) 119.72 (8.4%) 58.28 (11.8%) Crowne Plaza 75.3% 4.3% 104.46 (10.2%) 78.65 (4.8%) 59.0% (5.1%) 102.75 (7.1%) 60.63 (14.5%) Holiday Inn 67.1% 1.6% 73.92 (2.8%) 49.63 (0.3%) 65.5% (2.0%) 76.15 (5.2%) 49.87 (8.0%) Express

• 59.1%

(5.8%) 85.94 1.5% 50.77 (7.6%) Staybridge 72.6% 2.5% 84.03 (2.1%) 60.98 1.3%

• Total A

mericas

70.6%

3.2%

114.03

(3.9%)

80.47

0.7%

61.1%

(2.9%)

86.75

(5.9%)

53.03

(10.1%)

InterContinental 62.2% (3.8%) 168.36 (10.3%) 104.71 (15.5%) 51.3% (4.7%) 122.06 (9.6%) 62.61 (17.3%) Crowne Plaza 70.3% 2.8% 102.14 (9.2%) 71.79 (5.4%) 65.3% (2.2%) 100.77 1.1% 65.80 (2.2%) Holiday Inn 67.5% (2.0%) 88.68 (3.5%) 59.89 (6.2%) 49.6% (6.6%) 66.67 2.2% 33.06 (9.9%) Express 62.1% 8.3% 55.87 (2.3%) 34.71 12.8% 63.6% 7.0% 58.39 (2.2%) 37.13 9.8%

Total EMEA

66.6%

(1.4%)

105.44

(7.3%)

70.26

(9.1%)

53.5%

(4.6%)

102.83

(5.2%)

55.02

(12.6%)

InterContinental 26.9% (35.2%) 114.70 (38.9%) 30.85 (73.5%) 45.9% (17.9%) 125.57 (8.2%) 57.64 (33.9%) Crowne Plaza 74.8% 9.5% 78.78 (5.3%) 58.91 8.5% 47.8% (17.0%) 60.02 (4.9%) 28.66 (29.9%) Holiday Inn 75.2% 1.4% 63.33 (0.2%) 47.62 1.6% 43.4% (25.9%) 52.43 (1.6%) 22.75 (38.4%) Express

• 54.0%

(6.6%) 59.27 (4.0%) 32.01 (14.4%)

Total A sia Pacific

63.9%

(5.5%)

72.46

(19.7%)

46.33

(26.0%)

45.8%

(20.2%)

70.66

(1.6%)

32.37

(31.6%)

3

InterContinental Hotels - RevPAR Franchised & Total 3 Months to 30 June 2003

Franchised Total

Occ % ADR RevPAR Occ % ADR RevPAR

2003 Growth 2003 Growth 2003 Growth 2003 Growth 2003 Growth 2003 Growth InterContinental 52.3% 4.4% 102.81 (4.9%) 53.80 3.9% 56.0% 1.8% 129.16 (5.9%) 72.32 (2.7%) Crowne Plaza 61.6% (2.7%) 91.22 (0.9%) 56.20 (5.2%) 61.9% (2.9%) 95.29 (3.8%) 59.02 (8.1%) Holiday Inn 61.4% (2.7%) 79.16 (0.7%) 48.57 (4.9%) 61.8% (2.6%) 78.80 (1.2%) 48.70 (5.2%) Express 66.1% (0.6%) 73.01 0.4% 48.27 (0.5%) 66.1% (0.6%) 73.10 0.3% 48.29 (0.6%) Staybridge 66.3% (2.0%) 84.23 2.2% 55.83 (0.9%) 68.9% 0.5% 83.82 (0.3%) 57.77 0.4%

Total A mericas

62.8%

(1.9%)

78.25

(0.6%)

49.12

(3.5%)

62.9%

(1.8%)

80.30

(1.3%)

50.47

(4.1%)

InterContinental 61.4% (11.0%) 65.78 26.1% 40.37 7.0% 54.8% (5.0%) 133.28 (8.4%) 73.05 (16.1%) Crowne Plaza 59.7% (3.2%) 107.00 2.9% 63.88 (2.3%) 64.2% (1.3%) 103.68 (1.4%) 66.58 (3.3%) Holiday Inn 62.7% (4.0%) 71.69 4.3% 44.92 (1.9%) 62.5% (3.7%) 76.56 1.3% 47.86 (4.4%) Express 62.9% (9.9%) 76.65 9.0% 48.25 (5.8%) 62.9% (7.6%) 74.46 7.8% 46.84 (3.8%)

Total EMEA

62.3%

(5.1%)

76.89

5.7%

47.91

(2.3%)

61.3%

(4.0%)

90.50

(1.6%)

55.46

(7.6%)

InterContinental 60.5% (13.5%) 119.49 (5.6%) 72.28 (22.8%) 49.4% (17.7%) 122.56 (10.3%) 60.51 (34.0%) Crowne Plaza 68.6% (3.0%) 88.51 1.1% 60.74 (3.2%) 53.4% (12.6%) 68.43 (2.1%) 36.58 (20.9%) Holiday Inn 58.3% (6.4%) 51.70 (9.4%) 30.16 (18.3%) 50.3% (18.4%) 53.86 (2.7%) 27.08 (28.8%) Express 60.9% (2.0%) 52.64 0.2% 32.05 (2.9%) 58.6% (3.5%) 54.67 (1.6%) 32.04 (7.1%)

Total A sia Pacific

61.1%

(8.1%)

81.77

(5.2%)

49.97

(16.3%)

51.2%

(15.9%)

74.18

(3.8%)

37.97

(26.6%)

4

InterContinental Hotels - RevPAR Ow ned/Leased & Managed 6 Months to 30 June 2003

Owned & Leased Managed

Occ % ADR RevPAR Occ % ADR RevPAR

2003 Growth 2003 Growth 2003 Growth 2003 Growth 2003 Growth 2003 Growth InterContinental 66.4% 4.3% 160.55 (4.4%) 106.65 2.2% 46.6% (4.8%) 119.72 (9.6%) 55.82 (18.0%) Crowne Plaza 70.9% 5.0% 100.52 (10.0%) 71.29 (3.2%) 57.9% (3.3%) 103.13 (4.2%) 59.71 (9.4%) Holiday Inn 66.4% 1.4% 76.41 (3.9%) 50.72 (1.8%) 62.6% (1.0%) 75.93 (4.9%) 47.54 (6.4%) Express

• 56.6%

(1.9%) 80.68 (1.3%) 45.69 (4.5%) Staybridge 70.8% 5.3% 83.35 (1.8%) 58.99 6.2%

• Total A

mericas

68.2%

3.9%

113.19

(4.1%)

77.19

1.8%

58.7%

(2.2%)

86.64

(5.5%)

50.89

(8.8%)

InterContinental 60.0% (1.8%) 161.04 (8.9%) 96.61 (11.5%) 51.9% (2.7%) 122.94 (6.1%) 63.75 (10.8%) Crowne Plaza 67.5% 2.9% 103.56 (7.8%) 69.93 (3.7%) 65.1% (0.3%) 98.07 1.2% 63.82 0.7% Holiday Inn 64.7% (1.1%) 88.93 (2.3%) 57.52 (3.8%) 50.1% (4.8%) 67.15 2.0% 33.65 (6.9%) Express 59.4% 6.2% 59.85 0.9% 35.57 12.8% 52.3% 1.3% 58.29 (1.5%) 30.48 1.1%

Total EMEA

63.9%

(0.5%)

104.62

(5.7%)

66.89

(6.4%)

53.7%

(2.6%)

102.85

(3.8%)

55.27

(8.3%)

InterContinental 44.5% (17.7%) 163.40 (12.1%) 72.74 (37.1%) 51.8% (11.6%) 123.18 (5.6%) 63.85 (22.9%) Crowne Plaza 75.5% 7.9% 83.04 (5.3%) 62.69 5.9% 55.7% (10.3%) 61.44 (1.7%) 34.25 (17.0%) Holiday Inn 76.5% 3.2% 63.89 (0.2%) 48.88 4.1% 56.2% (10.5%) 54.69 3.2% 30.75 (13.0%) Express

• 54.6%

(0.9%) 58.63 (4.4%) 31.99 (6.0%)

Total A sia Pacific

69.1%

(0.7%)

83.15

(8.7%)

57.46

(9.6%)

55.4%

(10.1%)

70.67

0.8%

39.13

(14.7%)

5

InterContinental Hotels - RevPAR Franchised & Total 6 Months to 30 June 2003

Franchised Total

Occ % ADR RevPAR Occ % ADR RevPAR

2003 Growth 2003 Growth 2003 Growth 2003 Growth 2003 Growth 2003 Growth InterContinental 52.4% 1.6% 109.98 (2.2%) 57.63 0.9% 54.6% 0.3% 131.10 (4.5%) 71.57 (4.0%) Crowne Plaza 60.4% (0.7%) 92.15 (2.5%) 55.63 (3.5%) 60.5% (1.0%) 95.60 (3.9%) 57.83 (5.4%) Holiday Inn 58.1% (1.8%) 77.80 (0.7%) 45.18 (3.7%) 58.6% (1.7%) 77.61 (1.2%) 45.46 (3.9%) Express 61.3% (0.4%) 71.74 0.1% 44.01 (0.6%) 61.3% (0.4%) 71.80 0.0% 44.02 (0.6%) Staybridge 65.8% 1.8% 83.50 1.6% 54.98 4.4% 67.6% 3.7% 83.20 (0.3%) 56.27 5.4%

Total A mericas

59.2%

(1.1%)

77.31

(0.7%)

45.78

(2.6%)

59.5%

(1.1%)

79.48

(1.3%)

47.25

(3.1%)

InterContinental 66.7% (6.0%) 68.38 30.0% 45.58 19.3% 54.9% (2.6%) 130.82 (5.7%) 71.84 (9.9%) Crowne Plaza 54.7% (4.9%) 103.78 4.8% 56.82 (3.8%) 61.3% (1.4%) 101.91 (0.3%) 62.44 (2.5%) Holiday Inn 60.1% (3.0%) 69.97 4.5% 42.04 (0.5%) 60.2% (2.7%) 75.60 1.9% 45.53 (2.5%) Express 60.3% (9.4%) 76.08 10.7% 45.84 (4.3%) 59.9% (7.5%) 74.26 9.5% 44.47 (2.7%)

Total EMEA

59.6%

(4.5%)

75.12

6.3%

44.76

(1.1%)

59.3%

(2.9%)

89.54

(0.4%)

53.09

(5.1%)

InterContinental 68.5% (3.8%) 119.27 (5.6%) 81.70 (10.6%) 56.9% (9.4%) 124.07 (6.8%) 70.66 (20.1%) Crowne Plaza 69.8% (2.2%) 88.80 3.2% 61.95 0.0% 59.7% (7.7%) 69.06 (1.1%) 41.21 (12.4%) Holiday Inn 62.3% (0.4%) 53.10 (8.1%) 33.09 (8.8%) 59.9% (6.6%) 55.48 0.1% 33.22 (9.8%) Express 60.0% 0.1% 50.54 (1.2%) 30.31 (1.1%) 58.2% (0.3%) 53.08 (2.4%) 30.87 (2.8%)

Total A sia Pacific

65.8%

(1.9%)

82.27

(4.5%)

54.13

(7.2%)

59.2%

(7.2%)

75.19

(1.3%)

44.51

(12.0%)

6 3 mths 3mths to June 03 to June 02 $m $m %

AMERICAS Owned and leased 131 129 1.6 Managed & upscale franchised 28 25 12.0 Midscale franchised 75 77 (2.6) Total AMERICAS 234 231 1.3 EMEA Owned and leased 300 283 6.0 Managed & franchised 35 31 12.9 Total EMEA 335 314 6.7 ASIA PACIFIC 34 51 (33.3) Total 603 596 1.2

InterContinental Hotels - Revenue 3 Months to 30 June 2003

7 6 mths 6mths to June 03 to June 02 $m $m %

AMERICAS Owned and leased 248 237 4.6 Managed & upscale franchised 53 47 12.8 Midscale franchised 140 143 (2.1) Total AMERICAS 441 427 3.3 EMEA Owned and leased 557 517 7.7 Managed & franchised 65 70 (7.1) Total EMEA 622 587 6.0 ASIA PACIFIC 82 97 (15.5) Total 1,145 1,111 3.1

InterContinental Hotels - Revenue 6 Months to 30 June 2003

8

InterContinental Hotels Total Syst em Size at 30 June 2003

Owned & Leased Managed Franchised Total Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms InterContinental 10 4,421 15 4,636 19 5,142 44 14,199 Crowne Plaza 6 2,286 23 8,152 74 20,334 103 30,772 Holiday Inn 8 2,665 65 19,524 1,056 194,907 1,129 217,096 Express

• 5

740 1,293 103,662 1,298 104,402 Staybridge 20 2,454 1 114 34 3,592 55 6,160 Other

• 9

1,911

• 9

1,911 Total Americas 44 11,826 118 35,077 2,476 327,637 2,638 374,540 InterContinental 15 5,344 44 13,593 7 2,391 66 21,328 Crowne Plaza 15 3,867 18 4,705 26 6,223 59 14,795 Holiday Inn 91 15,782 33 6,218 217 33,259 341 55,259 Express 7 875 4 394 110 10,652 121 11,921 Other 1 580

• 2

430 3 1,010 Total EMEA 129 26,448 99 24,910 362 52,955 590 104,313 InterContinental 2 729 15 5,294 6 3,116 23 9,139 Crowne Plaza 3 698 26 9,365 5 1,720 34 11,783 Holiday Inn 9 1,839 43 11,467 24 3,984 76 17,290 Express

• 1

95 2 188 3 283 Other

• 7

929 1 128 8 1,057 Total Asia Pacific 14 3,266 92 27,150 38 9,136 144 39,552 InterContinental 27 10,494 74 23,523 32 10,649 133 44,666 Crowne Plaza 24 6,851 67 22,222 105 28,277 196 57,350 Holiday Inn 108 20,286 141 37,209 1,297 232,150 1,546 289,645 Express 7 875 10 1,229 1,405 114,502 1,422 116,606 Staybridge 20 2,454 1 114 34 3,592 55 6,160 Other 1 580 16 2,840 3 558 20 3,978 Total System 187 41,540 309 87,137 2,876 389,728 3,372 518,405

9

InterContinental Hotels Pipeline at 30 June 2003

Owned & Leased Managed Franchised Total Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms InterContinental 1 420 4 1,356

• 5

1,776 Crowne Plaza

• 3

622 11 2,609 14 3,231 Holiday Inn

• 3

1,159 75 10,373 78 11,532 Express

• 1

252 232 19,300 233 19,552 Staybridge 1 133 4 683 28 2,873 33 3,689 Total Americas 2 553 15 4,072 346 35,155 363 39,780 InterContinental

• 12

4,150

• 12

4,150 Crowne Plaza 1 314 3 851 5 1,089 9 2,254 Holiday Inn

• 16

4,478 14 2,134 30 6,612 Express 4 694 10 1,151 41 4,554 55 6,399 Total EMEA 5 1,008 41 10,630 60 7,777 106 19,415 InterContinental

• 5

1,884 2 650 7 2,534 Crowne Plaza

• 4

1,347

• 4

1,347 Holiday Inn 1 291 14 4,482

• 15

4,773 Express

• Total Asia Pacific

1 291 23 7,713 2 650 26 8,654 InterContinental 1 420 21 7,390 2 650 24 8,460 Crowne Plaza 1 314 10 2,820 16 3,698 27 6,832 Holiday Inn 1 291 33 10,119 89 12,507 123 22,917 Express 4 694 11 1,403 273 23,854 288 25,951 Staybridge 1 133 4 683 28 2,873 33 3,689 Total System 8 1,852 79 22,415 408 43,582 495 67,849

10

InterContinental Hotels Current Trading - RevPAR

RevPAR GROWTH FY03 'vs' FY02

Apr M ay Jun Jly Aug AME RICAS

InterContinental O&L (1.0%) 2.4% 7.2% 9.5% 5.2% Crowne Plaza Brands (12.7%) (8.9%) (5.6%) (0.2%) (3.3%) Holiday Inn Brands (8.3%) (4.0%) (3.9%) 1.1% (1.1%) Express Brands (2.7%) (0.2%) (0.2%) 3.4% 2.7%

E MEA

InterContinental O&L (32.8%) (9.0%) (6.9%) (7.4%) (7.9%) HIUK Regions (3.5%) (3.1%) 11.8% 1.9% 8.7% HIUK London (23.9%) (20.7%) (3.2%) (7.0%) 1.6%

RevPAR GROWTH FY03 'vs' FY01

Apr M ay Jun Jly Aug AME RICAS

InterContinental O&L (8.0%) (5.2%) (8.1%) (6.0%) (5.0%) Crowne Plaza Brands (17.0%) (19.3%) (17.2%) (11.2%) (6.8%) Holiday Inn Brands (11.5%) (10.3%) (9.4%) (1.1%) (5.1%) Express Brands (1.4%) (0.7%) (1.7%) 5.0% 4.1%

E MEA

InterContinental O&L (31.6%) (17.4%) (21.1%) (6.4%) (10.5%) HIUK Regions (4.0%) (3.8%) 2.2% 5.3% 6.5% HIUK London (34.4%) (31.4%) (22.8%) (11.0%) (8.3%)

11

InterContinental Hotels Current Trading - Occupancy

OCCUPANCY %pts GROWTH FY03 'vs' FY02

Apr M ay Jun Jly Aug AME RICAS

InterContinental O&L 2.6% 3.4% 6.3% 10.3% 5.8% Crowne Plaza Brands (6.2%) (3.4%) (1.3%) 0.4% 0.3% Holiday Inn Brands (4.5%) (1.8%) (2.1%) 0.6% (0.2%) Express Brands (2.0%) (0.5%) (0.5%) 1.8% 1.3%

E MEA

InterContinental O&L (10.9%) 2.0% (2.8%) 1.9% (0.8%) HIUK Regions 0.6% (1.0%) 3.4% (0.7%) 0.8% HIUK London (9.6%) (8.0%) 1.0% 4.0% 6.6%

OCCUPANCY %pts GROWTH FY03 'vs' FY01

Apr M ay Jun Jly Aug AME RICAS

InterContinental O&L 4.5% 7.0% 2.0% 6.0% 6.0% Crowne Plaza Brands (4.2%) (6.0%) (4.1%) (1.0%) 0.6% Holiday Inn Brands (4.8%) (4.3%) (4.8%) (0.1%) (2.8%) Express Brands (0.6%) (0.4%) (1.1%) 2.8% 1.7%

E MEA

InterContinental O&L (9.3%) (4.9%) (6.0%) 0.9% (7.5%) HIUK Regions (2.8%) (3.1%) 0.3% 1.3% 0.8% HIUK London (13.7%) (10.7%) (5.8%) 2.0% 3.4%

12

InterContinental Hotels Current Trading - Rate

ADR GROWTH FY03 'vs' FY02

Apr May Jun Jly Aug AMERICAS

InterContinental O&L (4.7%) (2.6%) (2.4%) (6.8%) (3.4%) Crowne Plaza Brands (3.7%) (3.9%) (3.7%) (0.9%) (3.8%) Holiday Inn Brands (1.3%) (1.1%) (0.9%) 0.3% (0.8%) Express Brands 0.4% 0.5% 0.5% 1.0% 0.9%

EMEA

InterContinental O&L (19.1%) (11.7%) (3.0%) (9.9%) (6.8%) HIUK Regions (4.5%) (1.7%) 6.5% 2.8% 7.4% HIUK London (12.4%) (11.3%) (4.4%) (11.3%) (6.3%)

ADR GROWTH FY03 'vs' FY01

Apr May Jun Jly Aug AMERICAS

InterContinental O&L (14.2%) (14.8%) (10.7%) (14.2%) (13.0%) Crowne Plaza Brands (11.1%) (11.4%) (12.0%) (9.9%) (7.6%) Holiday Inn Brands (4.3%) (3.9%) (2.8%) (1.0%) (1.0%) Express Brands (0.5%) (0.0%) (0.2%) 1.1% 1.6%

EMEA

InterContinental O&L (19.7%) (11.3%) (13.9%) (7.5%) (0.3%) HIUK Regions 0.2% 0.6% 1.8% 3.5% 5.3% HIUK London (20.2%) (20.5%) (17.1%) (13.0%) (11.9%)

13

InterContinental Hotels New Hotel Openings in 6 Months to 30 June 2003

Total new hotel openings Total new hotel openings 102 102 12,66 12,66 InterContinental Malta 4 965 Sharm El Sheikh, Egypt Koln, Germany Mumbai, India

Brand Brand Hotels Hotels Room Room

Crow ne Plaza Newcastle, Australia 4 752 Darwin, Australia Alice Springs, Australia Vilnius, Lithuania Holiday Inn 21 3,891 Express 68 6,449 Staybridge 5 560

14

Britvic Soft Drinks - Revenue & Operating Profit Calendar Year 2002 and 6 months to June 2003

Calendar 2003 Revenue 164 171 335 Operating Profit 8 31 39 Calendar 2002 Revenue 154 156 310 155 146 611 Operating Profit 9 25 34 22 12 68

Q1 Q1 Q2 Q2 H1 H1 Q3 Q3 Q4 Q4 Total Total £m £m £m £m £m £m