WELCOME TO OUR WORLD OF HOSPITALITY MILLENNIUM & COPTHORNE HOTELS PLC M Social Auckland (opening Oct 2017) HALF YEAR 2017 RESULTS PRESENTATION 04 th AUGUST 2017 Millennium Hilton New York One UN Plaza
Introduction Kwek Leng Beng, Chairman Hudson Theatre
H1 2017 HIGHLIGHTS £m H1 H1 % 2017 2016 Change Revenue 485 418 16.0% - at constant rates 485 465 4.3% Profit before tax 63 56 12.5% 63 62 1.6% - at constant rates 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% £m REVENUE H116 to H117 500 47 450 18 4 (2) 400 485 418 350 300 Revenue Hotel REIT Property Forex Revenue H1 2016 impact H1 2017 • REIT revenues are down by £2m. • Revenue at reported rate is up £67m or 16.0%. • Property revenues are up by £4m at constant currency largely • Revenue at constant rate is up £20m or 4.3%. due to contribution of NZ land bank sales. • Hotel revenues have increased £18m at constant • The weakening of the pound sterling is having a positive currency. translation forex impact of £47m on our overseas income • Like-for-like hotel revenue is flat in constant currency. streams .
HOTEL REVENUE HOTEL REVENUE GROWTH OF 15.5% £m Hotel Revenue H116 to H117 450 40 400 6 4 11 (3) 350 418 300 360 250 200 Hotel revenue GM Auckland One UN Middle East Underlying Forex Hotel revenue H1 2016 impact H1 2017 • Grand Millennium Auckland was added to the • Underlying revenues at constant rates are up £4m. Australasian hotel portfolio in Sep 2016. • The weaker pound sterling had a positive translation forex • One UN New York has been closed for refurbishment impact on overseas income streams. Excluding forex during 2016 (Nov15 to Sep16). Full six months trading in impact, hotel revenues are up £18m (4.5%). 2017. • Middle East hotels management agreement changed to a franchise agreement with effect from 01 st Jan 2017.
OPERATING PROFIT AND PROFIT BEFORE TAX OPERATING PROFIT UP 16.9% PBT UP 12.5% £m Operating Profit H116 to H117 10 6 70 1 5 60 (5) (7) 50 69 59 40 30 Op Profit Hotels REIT & Central costs Other Inc Impairment Forex Op Profit H1 2016 Property H1 2017 £m • Operating profit is up 16.9% from 2016 in reported rate. PBT H116 to H117 65 At constant rate it is up 6.1%. The main factors being 6 1 4 60 other income followed by Forex and hotel profit. 55 (4) 63 • Hotel operating profit is up £5m, the main factor being 56 50 Grand Millennium Auckland. 45 PBT H1 2016 Operating Profit JV/Associates Net Finance cost Forex Impact PBT H1 2017 • Positive property movement of £4m. Share of • REIT movement was negative £3m.
OPERATING PROFIT AND PROFIT BEFORE TAX OPERATING PROFIT UP 16.9% £m Operating Profit H116 to H117 6 10 70 0 5 60 (4) (7) 50 69 59 40 30 Op Profit Hotels REIT & Central costs Other Inc Impairment Forex Op Profit H1 2016 Property H1 2017 £m • Operating Profit is up 16.9% from 2016 in reported rate. PBT H116 to H117 65 At constant rate it is up 6.8%. The main factors being 6 1 4 60 Other Income followed by Forex impact and Hotel. 55 (4) 63 • Hotel operating profit is up £5m, the main factor being 56 50 Grand Millennium Auckland contributing £6.1m. 45 PBT H1 2016 Operating Profit JV/Associates Net Finance cost Forex Impact PBT H1 2017 • Positive Property movement of £4m cancels the negative Share of REIT movement
BUSINESS REVIEW Tan Kian Seng, Interim Group CEO Orchard Hotel Singapore – Hua Ting (artist illustration)
REGIONAL REVPAR TRENDS GROUP REVPAR UP 4.9% AT CONSTANT RATES * Restated at H1 2017 rates New York: Excl One UN, the Singapore: RevPAR down due RevPAR increase is only 1.0%. to reduced room rates. £ Rest of Asia: RevPAR down in most 160 hotels. Double digit drop in RevPAR London: All London hotels 10.0% at Seoul. experienced RevPAR increase. 140 Recently refurbished Bailey’s enjoyed double digit growth in H1 2016* 120 RevPAR. H1 2017 10.7% 100 (1.1%) 144.90 80 23.4% 131.72 (5.9%) 4.7% 60 101.38 (0.7%) 91.54 84.23 83.34 75.45 65.27 40 61.39 61.12 61.13 58.40 52.10 51.76 20 London Rest of Europe New York Regional US Singapore Rest of Asia Australasia Rest of Europe: RevPAR declined in Paris hotels Australasia: Excl Grand Millennium Regional US: RevPAR up in most due ongoing terror alerts affecting visitor Auckland, the RevPAR increase is hotels, especially in recently numbers. Rome occupancy down. 8.2%. Growth is driven by increased refurbished properties. overseas visitors. * Restated at 2017 rates
THANK YOU M Social Auckland (opening Oct 2017) 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.
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