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

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MILLENNIUM & COPTHORNE HOTELS PLC INTERIM RESULTS PRESENTATION 30 JULY 2015

WELCOME TO OUR WORLD OF HOSPITALITY

SLIDE 2

H1 2015 HIGHLIGHTS

£m H1 2015 H1 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

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H1 2015 HIGHLIGHTS

£m H1 2015 H1 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

SLIDE 4

FINANCIAL REVIEW & OPERATING PERFORMANCE Angela Ong, SVP Finance

The McCormick Scottsdale Grand Hyatt Taipei Millennium Bailey’s Hotel London Kensington

SLIDE 5

TOTAL REVENUE

REVENUE GROWTH OF 6.3%

380 404 15 2 11 (4)

300 320 340 360 380 400 420 Revenue H1 2014 Hotel REIT Property Forex impact Revenue H1 2015

£m REVENUE H1 2014 TO H1 2015

Reported revenue is up £24m or 6.3%.
Revenue at constant currencies increased £13m or

3.3%.

Hotel revenues have increased £15m at constant

currencies which includes acquisitions (£18m).

Property revenues are down £4m at constant currencies, with

the recognition of the final three Glyndebourne units in H1 2014 (£7m).

The weakening of the British Pound is having a positive

translation forex impact on our overseas income streams .

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TOTAL REVENUE

REVENUE GROWTH OF 6.3%

380 404 15 2 11 (4)

300 320 340 360 380 400 420 Revenue H1 2014 Hotel REIT Property Forex impact Revenue H1 2015

£m REVENUE H1 2014 TO H1 2015

Reported revenue is up £24m or 6.3%.
Revenue at constant currencies increased £13m or

3.3%.

Hotel revenues have increased £15m at constant

currencies which includes acquisitions (£18m).

Property revenues are down £4m at constant currencies, with

the recognition of the final three Glyndebourne units in H1 2014 (£7m).

The weakening of the British Pound is having a positive

translation forex impact on our overseas income streams .

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HOTEL REVENUE

HOTEL REVENUE GROWTH OF 7.7%

339 365 18 4 10 (2) (4)

300 310 320 330 340 350 360 370 Hotel revenue H1 2014 Acquisitions Net room

penings

Hannover lease ended Underlying Forex impact Hotel revenue H1 2015 £m

Hotel Revenue H1 2014 to H1 2015

Full period’s trading in H1 2015 for 2014 hotel

acquisitions - The Chelsea Harbour Hotel, London, Novotel New York Times Square and Grand Hotel Palace.

Net room openings - Grand Hyatt Taipei east wing was

closed for refurbishment during H1 2014.

Lease for Millennium Hotel Hannover ended in December

2014 and was not renewed.

Underlying revenues at constant rates are down £4m

from H1 2014, driven by Asia.

The weaker pound sterling had a positive translation forex

impact on overseas income streams. Excluding forex impact, hotel revenues were up £16m (4.6%).

SLIDE 8

HOTEL REVENUE

HOTEL REVENUE GROWTH OF 7.7%

339 365 18 4 10 (2) (4)

300 310 320 330 340 350 360 370 Hotel revenue H1 2014 Acquisitions Net room

penings

Hannover lease ended Underlying Forex impact Hotel revenue H1 2015 £m

Hotel Revenue H1 2014 to H1 2015

Full period’s trading in H1 2015 for 2014 hotel

acquisitions - The Chelsea Harbour Hotel, London, Novotel New York Times Square and Grand Hotel Palace.

Net room openings - Grand Hyatt Taipei east wing was

closed for refurbishment during H1 2014.

Lease for Millennium Hotel Hannover ended in December

2014 and was not renewed.

Underlying revenues at constant rates are down £4m

from H1 2014, driven by Asia.

The weaker pound sterling had a positive translation forex

impact on overseas income streams. Excluding forex impact, hotel revenues were up £16m (4.6%).

SLIDE 9

HOTEL REVENUE

HOTEL REVENUE GROWTH OF 7.7%

339 365 18 4 10 (2) (4)

300 310 320 330 340 350 360 370 Hotel revenue H1 2014 Acquisitions Net room

penings

Hannover lease ended Underlying Forex impact Hotel revenue H1 2015 £m

Hotel Revenue H1 2014 to H1 2015

Full period’s trading in H1 2015 for 2014 hotel

acquisitions - The Chelsea Harbour Hotel, London, Novotel New York Times Square and Grand Hotel Palace.

Net room openings - Grand Hyatt Taipei east wing was

closed for refurbishment during H1 2014.

Lease for Millennium Hotel Hannover ended in December

2014 and was not renewed.

Underlying revenues at constant rates are down £4m

from H1 2014, driven by Asia.

The weaker pound sterling had a positive translation forex

impact on overseas income streams. Excluding forex impact, hotel revenues were up £16m (4.6%).

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OPERATING PROFIT AND PROFIT BEFORE TAX

PBT UP 6.9%

65 64 4 (5)

50 55 60 65 70 Operating Profit H1 2014 Hotels Central costs Operating Profit H1 2015

£m Operating Profit H1 2014 to H1 2015

Operating profit is down 1.5% and PBT up 6.9%.
Hotel operating profit is down £5m with Asian revenue

falls impacting the bottom line

Central costs, including provisions, have fallen £4m
Share of JV/Associates is up £5m with an increased

contribution from First Sponsor as the Waterfront development starting to be sold in H1 2015. 58 62 5 1

50 55 60 65 H1 2014 Operating Profit Share of JV/Associates H1 2015

£m PBT H1 2014 to H1 2015

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OPERATING PROFIT AND PROFIT BEFORE TAX

PBT UP 6.9%

65 64 4 (5)

50 55 60 65 70 Operating Profit H1 2014 Hotels Central costs Operating Profit H1 2015

£m Operating Profit H1 2014 to H1 2015

Operating profit is down 1.5% and PBT up 6.9%.
Hotel operating profit is down £5m with Asian revenue

falls impacting the bottom line

Central costs, including provisions, have fallen £4m
Share of JV/Associates is up £5m with an increased

contribution from First Sponsor as the Waterfront development starting to be sold in H1 2015. 58 62 5 1

50 55 60 65 H1 2014 Operating Profit Share of JV/Associates H1 2015

£m PBT H1 2014 to H1 2015

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100.88 43.84 129.90 44.28 87.46 60.94 39.62 96.66 49.23 128.32 46.91 80.56 54.38 45.90

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

H1 2014 * H1 2015

REGIONAL REVPAR TRENDS

* Restated at H1 2015 rates

GROUP REVPAR UP 0.8% AT CONSTANT RATES

Rest of Europe: RevPAR growth in most hotels, boosted by Rome acquisition. Excluding acquisitions and closures, RevPAR grew 4.3% New York: Price pressure depressing RevPAR. Excluding Novotel, RevPAR fell by 6.4%. Singapore: Falling

verseas

visitors and increasing room supply putting pressure

n

pricing. Rest of Asia: RevPAR down, the largest faller being Millennium Seoul Hilton following MERS outbreak. Australasia: Strong growth, driven by increased overseas visitors. Regional US: RevPAR up in most hotels, with the largest gains at Chicago, Boulder and the recently refurbished Scottsdale property. London: London RevPAR impacted by refurbishment

f

Baileys. Excluding Baileys, RevPAR fell 1.8%.

(4.2%) 12.3% (1.2%) 5.9% (7.9%) (10.8%) 15.9%

£

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100.88 43.84 129.90 44.28 87.46 60.94 39.62 96.66 49.23 128.32 46.91 80.56 54.38 45.90

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

H1 2014 * H1 2015

REGIONAL REVPAR TRENDS

* Restated at H1 2015 rates

GROUP REVPAR UP 0.8% AT CONSTANT RATES

Rest of Europe: RevPAR growth in most hotels, boosted by Rome acquisition. Excluding acquisitions and closures, RevPAR grew 4.3% New York: Price pressure depressing RevPAR. Excluding Novotel, RevPAR fell by 6.4%. Singapore: Falling

verseas

visitors and increasing room supply putting pressure

n

pricing. Rest of Asia: RevPAR down, the largest faller being Millennium Seoul Hilton following MERS outbreak. Australasia: Strong growth, driven by increased overseas visitors. Regional US: RevPAR up in most hotels, with the largest gains at Chicago, Boulder and the recently refurbished Scottsdale property. London: London RevPAR impacted by refurbishment

f

Baileys. Excluding Baileys, RevPAR fell 1.8%.

(4.2%) 12.3% (1.2%) 5.9% (7.9%) (10.8%) 15.9%

£

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100.88 43.84 129.90 44.28 87.46 60.94 39.62 96.66 49.23 128.32 46.91 80.56 54.38 45.90

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

H1 2014 * H1 2015

REGIONAL REVPAR TRENDS

* Restated at H1 2015 rates

GROUP REVPAR UP 0.8% AT CONSTANT RATES

Rest of Europe: RevPAR growth in most hotels, boosted by Rome acquisition. Excluding acquisitions and closures, RevPAR grew 4.3% New York: Price pressure depressing RevPAR. Excluding Novotel, RevPAR fell by 6.4%. Singapore: Falling

verseas

visitors and increasing room supply putting pressure

n

pricing. Rest of Asia: RevPAR down, the largest faller being Millennium Seoul Hilton following MERS outbreak. Australasia: Strong growth, driven by increased overseas visitors. Regional US: RevPAR up in most hotels, with the largest gains at Chicago, Boulder and the recently refurbished Scottsdale property. London: London RevPAR impacted by refurbishment

f

Baileys. Excluding Baileys, RevPAR fell 1.8%.

(4.2%) 12.3% (1.2%) 5.9% (7.9%) (10.8%) 15.9%

£

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INVENTORY AND PIPELINE

INVENTORY GROWTH IN H1 2015 OF 3.6%

33,367 34,578 1,323 (108) (4) 30,000 31,000 32,000 33,000 34,000 35,000 Dec 14 Inventory New Mgmt Contracts Cessation of Franchise Other Jun 15 Inventory Rooms

H1 2015 Inventory Growth

34,578 40,923 507 1,169 4,669 30,000 32,000 34,000 36,000 38,000 40,000 42,000 Jun 15 Inventory Owned hotels Asian mgmt contracts Middle East mgmt contracts Future Inventory Rooms

Inventory Pipeline

5 hotels added to inventory in H1 2015, all under

management contract in the Middle East

End of franchise agreement of Kingsgate Hotel

Wellington in New Zealand reducing room count

19 hotels in the pipeline including the planned

construction of a hotel in Seoul, South Korea

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CAPITAL EXPENDITURE

CONTINUED INVESTMENT IN HOTEL REFURBISHMENT PROGRAMME

2014 and prior 2015 2016 2017 2018 Under Consideration 34 72 12 12 Approved 5 10 5 In Progress 36 37 4 Actual 130 12

20

40 60 80 100 120 140

£m

Project Capital Spending

Completed Major Refurbishments:

The Lakefront Anchorage

Ongoing Major Refurbishments:

Grand Hyatt Taipei
Copthorne Hotel Auckland Harbour City
ONE UN East Tower
Millennium Bailey’s Hotel London Kensington

Ongoing Major Refurbishments (continued):

Millennium Seoul Hilton
Millennium Hotel Buffalo
Millennium Biltmore Los Angeles
Copthorne Hotel and Resort Queenstown Lakefront

All estimates are subject to the necessary consents. Under consideration projects have not yet been formally approved by the Board.

1

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CAPITAL EXPENDITURE

CONTINUED INVESTMENT IN HOTEL REFURBISHMENT PROGRAMME

2014 and prior 2015 2016 2017 2018 Under Consideration 34 72 12 12 Approved 5 10 5 In Progress 36 37 4 Actual 130 12

20

40 60 80 100 120 140

£m

Project Capital Spending

Completed Major Refurbishments:

The Lakefront Anchorage

Ongoing Major Refurbishments:

Grand Hyatt Taipei
Copthorne Hotel Auckland Harbour City
ONE UN East Tower
Millennium Bailey’s Hotel London Kensington

Ongoing Major Refurbishments (continued):

Millennium Seoul Hilton
Millennium Hotel Buffalo
Millennium Biltmore Los Angeles
Copthorne Hotel and Resort Queenstown Lakefront

All estimates are subject to the necessary consents. Under consideration projects have not yet been formally approved by the Board.

1

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