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

WELCOME TO OUR WORLD OF HOSPITALITY MILLENNIUM & COPTHORNE HOTELS PLC INTERIM RESULTS PRESENTATION 30 JULY 2015

H1 2015 HIGHLIGHTS £m H1 H1 % 2015 2014 Change Revenue 404 380 6.3% - at constant rates 404 391 3.3% Profit before tax 62 58 6.9% - at constant rates 62 59 5.1% Basic EPS 11.2p 9.4p 19.1% Interim ordinary dividend per share 2.08p 2.08p - -

H1 2015 HIGHLIGHTS £m H1 H1 % 2015 2014 Change Revenue 404 380 6.3% - at constant rates 404 391 3.3% Profit before tax 62 58 6.9% - at constant rates 62 59 5.1% Basic EPS 11.2p 9.4p 19.1% Interim ordinary dividend per share 2.08p 2.08p - -

FINANCIAL REVIEW & OPERATING PERFORMANCE Angela Ong, SVP Finance Millennium Bailey’s Hotel London Kensington Grand Hyatt Taipei The McCormick Scottsdale

TOTAL REVENUE REVENUE GROWTH OF 6.3% £m REVENUE H1 2014 TO H1 2015 420 11 2 15 400 (4) 380 360 404 380 340 320 300 Revenue Hotel REIT Property Forex Revenue H1 2014 impact H1 2015 • Reported revenue is up £24m or 6.3%. • Property revenues are down £4m at constant currencies, with the recognition of the final three Glyndebourne units in H1 • Revenue at constant currencies increased £13m or 2014 (£7m). 3.3%. • The weakening of the British Pound is having a positive • Hotel revenues have increased £15m at constant translation forex impact on our overseas income streams . currencies which includes acquisitions (£18m).

TOTAL REVENUE REVENUE GROWTH OF 6.3% £m REVENUE H1 2014 TO H1 2015 420 11 2 15 400 (4) 380 360 404 380 340 320 300 Revenue Hotel REIT Property Forex Revenue H1 2014 impact H1 2015 • Reported revenue is up £24m or 6.3%. • Property revenues are down £4m at constant currencies, with the recognition of the final three Glyndebourne units in H1 • Revenue at constant currencies increased £13m or 2014 (£7m). 3.3%. • The weakening of the British Pound is having a positive • Hotel revenues have increased £15m at constant translation forex impact on our overseas income streams . currencies which includes acquisitions (£18m).

HOTEL REVENUE HOTEL REVENUE GROWTH OF 7.7% £m Hotel Revenue H1 2014 to H1 2015 10 370 4 18 360 (2) (4) 350 340 365 330 320 339 310 300 Hotel revenue Acquisitions Net room Hannover lease Underlying Forex Hotel revenue H1 2014 openings ended impact H1 2015 • Lease for Millennium Hotel Hannover ended in December • Full period’s trading in H1 2015 for 2014 hotel 2014 and was not renewed. acquisitions - The Chelsea Harbour Hotel, London, Novotel New York Times Square and Grand Hotel Palace. • Underlying revenues at constant rates are down £4m • Net room openings - Grand Hyatt Taipei east wing was from H1 2014, driven by Asia. closed for refurbishment during H1 2014. • The weaker pound sterling had a positive translation forex impact on overseas income streams. Excluding forex impact, hotel revenues were up £16m (4.6%).

HOTEL REVENUE HOTEL REVENUE GROWTH OF 7.7% £m Hotel Revenue H1 2014 to H1 2015 10 370 4 18 360 (2) (4) 350 340 365 330 320 339 310 300 Hotel revenue Acquisitions Net room Hannover lease Underlying Forex Hotel revenue H1 2014 openings ended impact H1 2015 • Lease for Millennium Hotel Hannover ended in December • Full period’s trading in H1 2015 for 2014 hotel 2014 and was not renewed. acquisitions - The Chelsea Harbour Hotel, London, Novotel New York Times Square and Grand Hotel Palace. • Underlying revenues at constant rates are down £4m • Net room openings - Grand Hyatt Taipei east wing was from H1 2014, driven by Asia. closed for refurbishment during H1 2014. • The weaker pound sterling had a positive translation forex impact on overseas income streams. Excluding forex impact, hotel revenues were up £16m (4.6%).

HOTEL REVENUE HOTEL REVENUE GROWTH OF 7.7% £m Hotel Revenue H1 2014 to H1 2015 10 370 4 18 360 (2) (4) 350 340 365 330 320 339 310 300 Hotel revenue Acquisitions Net room Hannover lease Underlying Forex Hotel revenue H1 2014 openings ended impact H1 2015 • Lease for Millennium Hotel Hannover ended in December • Full period’s trading in H1 2015 for 2014 hotel 2014 and was not renewed. acquisitions - The Chelsea Harbour Hotel, London, Novotel New York Times Square and Grand Hotel Palace. • Underlying revenues at constant rates are down £4m • Net room openings - Grand Hyatt Taipei east wing was from H1 2014, driven by Asia. closed for refurbishment during H1 2014. • The weaker pound sterling had a positive translation forex impact on overseas income streams. Excluding forex impact, hotel revenues were up £16m (4.6%).

OPERATING PROFIT AND PROFIT BEFORE TAX PBT UP 6.9% £m Operating Profit H1 2014 to H1 2015 70 4 65 60 65 (5) 64 55 50 Operating Profit Hotels Central costs Operating Profit H1 2014 H1 2015 £m PBT H1 2014 to H1 2015 • Operating profit is down 1.5% and PBT up 6.9%. 65 5 • Hotel operating profit is down £5m with Asian revenue 60 falls impacting the bottom line 62 55 1 58 • Central costs, including provisions, have fallen £4m 50 • Share of JV/Associates is up £5m with an increased H1 2014 Operating Profit JV/Associates H1 2015 Share of contribution from First Sponsor as the Waterfront development starting to be sold in H1 2015.

OPERATING PROFIT AND PROFIT BEFORE TAX PBT UP 6.9% £m Operating Profit H1 2014 to H1 2015 70 4 65 60 65 (5) 64 55 50 Operating Profit Hotels Central costs Operating Profit H1 2014 H1 2015 £m PBT H1 2014 to H1 2015 • Operating profit is down 1.5% and PBT up 6.9%. 65 5 • Hotel operating profit is down £5m with Asian revenue 60 falls impacting the bottom line 62 55 1 58 • Central costs, including provisions, have fallen £4m 50 • Share of JV/Associates is up £5m with an increased H1 2014 Operating Profit JV/Associates H1 2015 Share of contribution from First Sponsor as the Waterfront development starting to be sold in H1 2015.

REGIONAL REVPAR TRENDS GROUP REVPAR UP 0.8% AT CONSTANT RATES New York: Price pressure Singapore: Falling overseas depressing RevPAR. Excluding visitors and increasing room Novotel, RevPAR fell by 6.4%. £ supply putting pressure on pricing. Rest of Asia: RevPAR down, the largest London: London RevPAR impacted 140 (1.2%) faller being Millennium Seoul Hilton by refurbishment of Baileys. following MERS outbreak. Excluding Baileys, RevPAR fell 1.8%. 120 (4.2%) 100 (7.9%) H1 2014 * 80 129.90 128.32 H1 2015 (10.8%) 60 100.88 12.3% 5.9% 96.66 87.46 15.9% 80.56 40 60.94 54.38 49.23 46.91 45.90 43.84 44.28 39.62 20 London Rest of Europe New York Regional US Singapore Rest of Asia Australasia Australasia: Strong growth, driven by Rest of Europe: RevPAR growth in most Regional US: RevPAR up in most hotels, with the increased overseas visitors. hotels, boosted by Rome acquisition. largest gains at Chicago, Boulder and the recently Excluding acquisitions and closures, refurbished Scottsdale property. RevPAR grew 4.3% * Restated at H1 2015 rates

REGIONAL REVPAR TRENDS GROUP REVPAR UP 0.8% AT CONSTANT RATES New York: Price pressure Singapore: Falling overseas depressing RevPAR. Excluding visitors and increasing room Novotel, RevPAR fell by 6.4%. £ supply putting pressure on pricing. Rest of Asia: RevPAR down, the largest London: London RevPAR impacted 140 (1.2%) faller being Millennium Seoul Hilton by refurbishment of Baileys. following MERS outbreak. Excluding Baileys, RevPAR fell 1.8%. 120 (4.2%) 100 (7.9%) H1 2014 * 80 129.90 128.32 H1 2015 (10.8%) 60 100.88 12.3% 5.9% 96.66 87.46 15.9% 80.56 40 60.94 54.38 49.23 46.91 45.90 43.84 44.28 39.62 20 London Rest of Europe New York Regional US Singapore Rest of Asia Australasia Australasia: Strong growth, driven by Rest of Europe: RevPAR growth in most Regional US: RevPAR up in most hotels, with the increased overseas visitors. hotels, boosted by Rome acquisition. largest gains at Chicago, Boulder and the recently Excluding acquisitions and closures, refurbished Scottsdale property. RevPAR grew 4.3% * Restated at H1 2015 rates

REGIONAL REVPAR TRENDS GROUP REVPAR UP 0.8% AT CONSTANT RATES New York: Price pressure Singapore: Falling overseas depressing RevPAR. Excluding visitors and increasing room Novotel, RevPAR fell by 6.4%. £ supply putting pressure on pricing. Rest of Asia: RevPAR down, the largest London: London RevPAR impacted 140 (1.2%) faller being Millennium Seoul Hilton by refurbishment of Baileys. following MERS outbreak. Excluding Baileys, RevPAR fell 1.8%. 120 (4.2%) 100 (7.9%) H1 2014 * 80 129.90 128.32 H1 2015 (10.8%) 60 100.88 12.3% 5.9% 96.66 87.46 15.9% 80.56 40 60.94 54.38 49.23 46.91 45.90 43.84 44.28 39.62 20 London Rest of Europe New York Regional US Singapore Rest of Asia Australasia Australasia: Strong growth, driven by Rest of Europe: RevPAR growth in most Regional US: RevPAR up in most hotels, with the increased overseas visitors. hotels, boosted by Rome acquisition. largest gains at Chicago, Boulder and the recently Excluding acquisitions and closures, refurbished Scottsdale property. RevPAR grew 4.3% * Restated at H1 2015 rates