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

MILLENNIUM & COPTHORNE HOTELS PLC

HALF YEAR 2017 RESULTS PRESENTATION 04th AUGUST 2017

WELCOME TO OUR WORLD OF HOSPITALITY

Millennium Hilton New York One UN Plaza M Social Auckland (opening Oct 2017)

Introduction Kwek Leng Beng, Chairman

Hudson Theatre

H1 2017 HIGHLIGHTS

£m H1 2017 H1 2016 % Change Revenue 485 418 16.0%

• at constant rates

485 465 4.3% Profit before tax 63 56 12.5%

• at constant rates

63 62 1.6% Net Assets (vs Dec 2016) 3,164 3,170 (0.2%) Basic EPS 12.8p 9.3p 37.6% Interim Ordinary dividend per share 2.08p 2.08p

FINANCIAL REVIEW Kok-Kee Chong, Chief Financial Officer

Millennium Hilton New York One UN Plaza

TOTAL REVENUE

REVENUE GROWTH OF 16.0%

418 485 18 4 47 (2)

300 350 400 450 500 Revenue H1 2016 Hotel REIT Property Forex impact Revenue H1 2017

£m REVENUE H116 to H117

• Revenue at reported rate is up £67m or 16.0%.
• Revenue at constant rate is up £20m or 4.3%.
• Hotel revenues have increased £18m at constant

currency.

• Like-for-like hotel revenue is flat in constant currency.
• REIT revenues are down by £2m.
• Property revenues are up by £4m at constant currency largely

due to contribution of NZ land bank sales.

• The weakening of the pound sterling is having a positive

translation forex impact of £47m on our overseas income streams .

HOTEL REVENUE

HOTEL REVENUE GROWTH OF 15.5%

360 418 11 6 4 40 (3)

200 250 300 350 400 450 Hotel revenue H1 2016 GM Auckland One UN Middle East Underlying Forex impact Hotel revenue H1 2017 £m

Hotel Revenue H116 to H117

• Grand Millennium Auckland was added to the

Australasian hotel portfolio in Sep 2016.

• One UN New York has been closed for refurbishment

during 2016 (Nov15 to Sep16). Full six months trading in 2017.

• Middle East hotels management agreement changed to a

franchise agreement with effect from 01st Jan 2017.

• Underlying revenues at constant rates are up £4m.
• The weaker pound sterling had a positive translation forex

impact on overseas income streams. Excluding forex impact, hotel revenues are up £18m (4.5%).

OPERATING PROFIT AND PROFIT BEFORE TAX

OPERATING PROFIT UP 16.9% PBT UP 12.5%

• Operating profit is up 16.9% from 2016 in reported rate.

At constant rate it is up 6.1%. The main factors being

• ther income followed by Forex and hotel profit.
• Hotel operating profit is up £5m, the main factor being

Grand Millennium Auckland.

• Positive property movement of £4m.
• REIT movement was negative £3m.

59 69 5 1 10 6 (7) (5) 30 40 50 60 70 Op Profit H1 2016 Hotels REIT & Property Central costs Other Inc Impairment Forex Op Profit H1 2017 £m

Operating Profit H116 to H117

56 63 4 1 6 (4) 45 50 55 60 65 PBT H1 2016 Operating Profit Share of JV/Associates Net Finance cost Forex Impact PBT H1 2017

£m PBT H116 to H117

OPERATING PROFIT AND PROFIT BEFORE TAX

OPERATING PROFIT UP 16.9%

• Operating Profit is up 16.9% from 2016 in reported rate.

At constant rate it is up 6.8%. The main factors being Other Income followed by Forex impact and Hotel.

• Hotel operating profit is up £5m, the main factor being

Grand Millennium Auckland contributing £6.1m.

• Positive Property movement of £4m cancels the negative

REIT movement

59 69 5 10 6 (7) (4) 30 40 50 60 70 Op Profit H1 2016 Hotels REIT & Property Central costs Other Inc Impairment Forex Op Profit H1 2017 £m

Operating Profit H116 to H117

56 63 4 1 6 (4) 45 50 55 60 65 PBT H1 2016 Operating Profit Share of JV/Associates Net Finance cost Forex Impact PBT H1 2017

£m PBT H116 to H117

BUSINESS REVIEW Tan Kian Seng, Interim Group CEO

Orchard Hotel Singapore – Hua Ting (artist illustration)

91.54 52.10 131.72 58.40 84.23 65.27 61.13 101.38 51.76 144.90 61.12 83.34 61.39 75.45

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

H1 2016* H1 2017

REGIONAL REVPAR TRENDS

* Restated at 2017 rates

GROUP REVPAR UP 4.9% AT CONSTANT RATES

Rest of Europe: RevPAR declined in Paris hotels due

• ngoing

terror alerts affecting visitor

• numbers. Rome occupancy down.

New York: Excl One UN, the RevPAR increase is only 1.0%. Singapore: RevPAR down due to reduced room rates. Rest of Asia: RevPAR down in most

• hotels. Double digit drop in RevPAR

at Seoul. Australasia: Excl Grand Millennium Auckland, the RevPAR increase is 8.2%. Growth is driven by increased

• verseas visitors.

Regional US: RevPAR up in most hotels, especially in recently refurbished properties. London: All London hotels experienced RevPAR increase. Recently refurbished Bailey’s enjoyed double digit growth in RevPAR.

10.7% (0.7%) 10.0% 4.7% (1.1%) (5.9%) 23.4%

£

* Restated at H1 2017 rates

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

M Social Auckland (opening Oct 2017)