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

WELCOME TO OUR WORLD OF HOSPITALITY MILLENNIUM & COPTHORNE HOTELS PLC RESULTS PRESENTATION 17 FEBRUARY 2017 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 FY FY % RevPAR – key gateway cities 2016 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% £m REVENUE 2015 TO 2016 79 930 910 890 870 16 850 3 926 830 (19) 810 847 790 770 750 Revenue Hotel REIT Property Forex Revenue 2015 impact 2016 • REIT revenues are up £3m including contribution from the • Reported revenue is up £79m or 9.3%. newly acquired Cambridge property. • Revenue at constant currencies is flat. • Property revenues are up £16m at constant currencies. • Hotel revenues have decreased £19m at constant • The weakening of the British Pound is having a positive currencies. translation forex impact on our overseas income streams .

HOTEL REVENUE HOTEL REVENUE GROWTH OF 6.4% £m Hotel Revenue 2015 to 2016 820 68 800 780 3 760 (2) 814 740 765 (20) 720 700 Hotel revenue 2015 Acquisitions Net room Underlying Forex Hotel revenue openings impact 2016 • Acquisitions - Full period’s trading in 2016 for 2015 hotel • Underlying revenues at constant rates are down £20m acquisition of Hard Days Night, Liverpool. from 2015, driven by US, Asia and Europe. NZ was up. • Net room openings – Auckland Harbour City has been • The weaker pound sterling had a positive translation forex closed for refurbishment during 2016. It has been closed impact on overseas income streams. Excluding forex for refurbishment from July 2015. impact, hotel revenues down £19m (2.3%).

OPERATING PROFIT AND PROFIT BEFORE TAX OPERATING PROFIT DOWN 4.5% £m Operating Profit 2015 to 2016 120 15 10 2 100 80 (5) (1) 112 (26) 107 60 40 20 Op Profit Hotels Property Central costs Other Inc/(Exp) Reval/ Forex Impact Op Profit 2015 Impairment 2016 • Operating Profit is down 4.5% from 2015, the main factors £m PBT 2015 to 2016 being Hotel, Property and Forex impact. 15 120 7 100 • A net revaluations and impairments charge of £44m has been (3) 80 (20) recorded in 2016. When compared to 2015 at Constant Rate it 60 109 108 40 is flat. 20 0 • Hotel operating profit is down £26m, the main factor being PBT 2015 Operating Profit JV/Associates Net Finance Forex Impact PBT 2016 Share of US, Asian & Europe revenue falls impacting the bottom line. cost • Increases in Property operation (£10m) and Share of JV/Associates (£7m) reducing the effect of fall in Hotel Operations.

REGIONAL REVPAR TRENDS GROUP REVPAR DOWN 2.3% AT CONSTANT RATES New York: RevPAR fell due to Singapore: RevPAR down due to i ncreased inventory in NY and reduced consumer spending and impact of refurbishment. Excluding £ lower corporate demand. ONE UN refurbishment RevPAR fell Increased new room supply and Rest of Asia: RevPAR up largely due to 180 by 5.7%. price competition also were higher occupancy recorded at recently (9.9%) contributing factors. refurbished Seoul Hotel. 160 London: All London hotels except recently 140 refurbished Bailey’s Hotel witnessed 120 (1.4%) RevPAR declines. 2015 * 100 (10.1%) 2016 161.57 145.64 80 1.9% 108.68 4.0% 20.9% 107.18 60 (1.6%) 89.26 80.21 40 60.63 59.52 57.49 58.40 55.30 53.47 52.61 48.32 20 London Rest of Europe New York Regional US Singapore Rest of Asia Australasia Australasia: Strong growth, driven by Rest of Europe: RevPAR declined in Paris Regional US: RevPAR up in most hotels, especially increased overseas visitors. hotels due to terror alerts and also in in recently refurbished properties Aberdeen, which is heavily reliant on oil industry clients. Rome performed well. * Restated at 2016 rates

THANK YOU ONE UN New York 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.