welcome to our world of hospitality...interim results presentation 30 july 2015 welcome to our world...

MILLENNIUM & COPTHORNE HOTELS PLC

INTERIM RESULTS PRESENTATION

30 JULY 2015

WELCOME TO

OUR WORLD OF

HOSPITALITY

H1 2015 HIGHLIGHTS

£m H1

Change

Revenue 404 380 6.3%

- at constant rates 404 391 3.3%

Profit before tax 62 58 6.9%

Basic EPS 11.2p 9.4p 19.1%

Interim ordinary dividend per share 2.08p 2.08p - -

H1 2015 HIGHLIGHTS

£m H1

Change

Revenue 404 380 6.3%

Profit before tax 62 58 6.9%

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

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

TOTAL REVENUE

REVENUE GROWTH OF 6.3%

380 404

15 2 11

RevenueH1 2014

Hotel REIT Property Foreximpact

RevenueH1 2015

£m REVENUE H1 2014 TO H1 2015

• Reported revenue is up £24m or 6.3%.

• Revenue at constant currencies increased £13m or

• 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 .

TOTAL REVENUE

REVENUE GROWTH OF 6.3%

380 404

15 2 11

RevenueH1 2014

Hotel REIT Property Foreximpact

RevenueH1 2015

£m REVENUE H1 2014 TO H1 2015

• Reported revenue is up £24m or 6.3%.

• Revenue at constant currencies increased £13m or

• 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 .

HOTEL REVENUE

HOTEL REVENUE GROWTH OF 7.7%

(2) (4)

Hotel revenueH1 2014

Acquisitions Net roomopenings

Hannover leaseended

Underlying Foreximpact

£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%).

HOTEL REVENUE

(2) (4)

Hannover leaseended

HOTEL REVENUE

(2) (4)

Hannover leaseended

OPERATING PROFIT AND PROFIT BEFORE TAX

PBT UP 6.9%

Operating ProfitH1 2014

Hotels Central costs Operating ProfitH1 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.

£m PBT H1 2014 to H1 2015

OPERATING PROFIT AND PROFIT BEFORE TAX

PBT UP 6.9%

Operating ProfitH1 2014

Hotels Central costs Operating ProfitH1 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.

£m PBT H1 2014 to H1 2015

100.88

129.90

128.32

54.38 45.90

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 overseas visitors and increasing room supply putting pressure on 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 of Baileys. Excluding Baileys, RevPAR fell 1.8%.

(4.2%)

(1.2%)

(7.9%)

(10.8%)

100.88

129.90

128.32

54.38 45.90

H1 2014 *

H1 2015

(4.2%)

(1.2%)

(7.9%)

(10.8%)

100.88

129.90

128.32

54.38 45.90

H1 2014 *

H1 2015

(4.2%)

(1.2%)

(7.9%)

(10.8%)

INVENTORY AND PIPELINE

INVENTORY GROWTH IN H1 2015 OF 3.6%

33,367 34,578

(108) (4)

30,000

31,000

32,000

33,000

34,000

35,000

ssation

Rooms H1 2015 Inventory Growth

34,578

40,923 507 1,169

30,000

32,000

34,000

36,000

38,000

40,000

42,000

tcontr

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

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

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.

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

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.

OUR STRATEGIC PRIORITIES

TALENT, ASSETS, BRANDING

ALOYSIUS LEE, CEO

Millennium Hotel Buffalo The Lakefront Anchorage Millennium Seoul Hilton

ALOYSIUS LEE, CEO

ALOYSIUS LEE

ALOYSIUS LEE, CEO

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

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