WELCOME TO OUR WORLD OF HOSPITALITY MILLENNIUM & COPTHORNE - - PowerPoint PPT Presentation

MILLENNIUM & COPTHORNE HOTELS PLC

RESULTS PRESENTATION 17 FEBRUARY 2017

WELCOME TO OUR WORLD OF HOSPITALITY

Millennium Broadway Hotel NY – Hudson Theatre

2016 HIGHLIGHTS

£m 2016 2015 % Change Revenue 926 847 9.3%

• at constant rates

926 926 0.0% Profit before tax 108 109 (0.9)% Net Assets 3,170 2,712 16.9% Basic EPS 24.0p 19.9p 20.6% Ordinary dividend per share 7.74p 6.42p 20.6%

2016 HIGHLIGHTS

RevPAR – key gateway cities FY 2016 £ FY 2015 £ % Change New York 145.64 161.57 (9.9%) New York LFL 160.13 169.74 (5.7)% London 107.18 108.68 (1.4)% London LFL 107.54 112.52 (4.4)% Singapore 80.21 89.26 (10.1)%

FINANCIAL REVIEW Kok-Kee Chong, Chief Financial Officer

M Social Hotel Singapore

TOTAL REVENUE

REVENUE GROWTH OF 9.3%

847 926 3 16 79 (19)

750 770 790 810 830 850 870 890 910 930 Revenue 2015 Hotel REIT Property Forex impact Revenue 2016

£m REVENUE 2015 TO 2016

• Reported revenue is up £79m or 9.3%.
• Revenue at constant currencies is flat.
• Hotel revenues have decreased £19m at constant

currencies.

• REIT revenues are up £3m including contribution from the

newly acquired Cambridge property.

• Property revenues are up £16m at constant currencies.
• The weakening of the British Pound is having a positive

translation forex impact on our overseas income streams .

HOTEL REVENUE

HOTEL REVENUE GROWTH OF 6.4%

765 814 3 68 (2) (20)

700 720 740 760 780 800 820 Hotel revenue 2015 Acquisitions Net room

• penings

Underlying Forex impact Hotel revenue 2016 £m

Hotel Revenue 2015 to 2016

• Acquisitions - Full period’s trading in 2016 for 2015 hotel

acquisition of Hard Days Night, Liverpool.

• Net room openings – Auckland Harbour City has been

closed for refurbishment during 2016. It has been closed for refurbishment from July 2015.

• Underlying revenues at constant rates are down £20m

from 2015, driven by US, Asia and Europe. NZ was up.

• The weaker pound sterling had a positive translation forex

impact on overseas income streams. Excluding forex impact, hotel revenues down £19m (2.3%).

OPERATING PROFIT AND PROFIT BEFORE TAX

OPERATING PROFIT DOWN 4.5%

• Operating Profit is down 4.5% from 2015, the main factors

being Hotel, Property and Forex impact.

• A net revaluations and impairments charge of £44m has been

recorded in 2016. When compared to 2015 at Constant Rate it is flat.

• Hotel operating profit is down £26m, the main factor being

US, Asian & Europe revenue falls impacting the bottom line.

• Increases in Property operation (£10m) and Share of

JV/Associates (£7m) reducing the effect of fall in Hotel Operations.

112 107 10 2 15 (26) (5) (1) 20 40 60 80 100 120 Op Profit 2015 Hotels Property Central costs Other Inc/(Exp) Reval/ Impairment Forex Impact Op Profit 2016 £m

Operating Profit 2015 to 2016

109 108 7 15 (20) (3) 20 40 60 80 100 120 PBT 2015 Operating Profit Share of JV/Associates Net Finance cost Forex Impact PBT 2016

£m PBT 2015 to 2016

108.68 53.47 161.57 55.30 89.26 59.52 48.32 107.18 52.61 145.64 57.49 80.21 60.63 58.40

20 40 60 80 100 120 140 160 180 London Rest of Europe New York Regional US Singapore Rest of Asia Australasia

2015 * 2016

REGIONAL REVPAR TRENDS

* Restated at 2016 rates

GROUP REVPAR DOWN 2.3% AT CONSTANT RATES

Rest of Europe: RevPAR declined in Paris hotels due to terror alerts and also in Aberdeen, which is heavily reliant on oil industry clients. Rome performed well. New York: RevPAR fell due to increased inventory in NY and impact of refurbishment. Excluding ONE UN refurbishment RevPAR fell by 5.7%. Singapore: RevPAR down due to reduced consumer spending and lower corporate demand. Increased new room supply and price competition also were contributing factors. Rest of Asia: RevPAR up largely due to higher occupancy recorded at recently refurbished Seoul Hotel. Australasia: Strong growth, driven by increased overseas visitors. Regional US: RevPAR up in most hotels, especially in recently refurbished properties London: All London hotels except recently refurbished Bailey’s Hotel witnessed RevPAR declines.

(1.4%) (1.6%) (9.9%) 4.0% (10.1%) 1.9% 20.9%

£

This presentation contains certain statements that are or may be forward-looking with respect to the financial condition, results or operations and business of Millennium & Copthorne Hotels plc. By their nature forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. Undue reliance should not be placed on forward looking statements which speak only as of the date of this document. The Group accepts no obligation to publicly revise or update these forward-looking statements or adjust them to future events or developments, whether as a result of new information, future events or otherwise, except to the extent legally required.

THANK YOU

ONE UN New York