Interim Results Announcement 8 August 2002

Transcription

1 M I L L E N N I U M & C O P T H O R N E H O T E L S Draft b, complete Interim Results Announcement 8 August 2002

2 Kwek Leng Beng C H A I R M A N

3 Financial highlights H 2002 H2 200 H 200 Turnover ( m) Profit before interest ( m) Profit before tax ( m) Earnings per share 4.6p 0.3p* Dividend 4.2p 4.2p * restated for FRS 9

4 Strategy! Group has attained critical mass! Portfolio already well invested! No collapse in hotel values limited opportunities for the right acquisitions! Focus on management contracts! Continuing to drive organic growth

5 Growth drivers! Exposure to key cities around the world! Well invested, high quality asset base! Proven operational & property skills! Strong balance sheet Well positioned for upturn

6 David Thomas G R O U P F I N A N C E D I R E C T O R

7 Key numbers in GBP m H 2002 H 200 Turnover Operating profit Share of associates / joint ventures Interest (24.0) (3.) Profit before tax Taxation * * restated for FRS 9

8 RevPAR,, H 2002 vs H 200 Like for like figures, in GBP, at constant rates of exchange % H 2002 H 200 change Group (6) New York City (6) 2 Rest of US () London () 3 Rest of Europe (9) Asia (2) Australasia excludes Millenium Hilton 2 excludes disposals 3 includes Stuttgart

9 RevPAR detail, H 2002 vs H 200 % change, based on like for like figures, in GBP, at constant rates of exchange / 28/2 /3 7/5 8/5 30/6 H total Group (8) (6) (6) (6) New York City (6) (5) (7) (6) 2 Rest of US (7) (3) (4) () London () (0) (3) () 3 Rest of Europe (7) (6) (4) (9) Asia (5) () () (2) Australasia excludes Millenium Hilton 2 excludes disposals 3 includes Stuttgart

10 Operating profit by region in GBP m H 2002 H 200 New York City Rest of US London Rest of Europe Asia Australasia Total from operations Central costs (6.4) (6.0) Total

11 Cash flow summary! Cash inflow from operations 59.7m! Repayment of debt 0.2m! Cash outflow on capital expenditure 2.4m! Capital expenditure planned for m Additional projects include: repositioning of Copthorne King s, Singapore acquisition of freehold of Quality Hotel, Logan Park, Auckland

12 Balance sheet summary m June 2002 Dec 200 Fixed assets 2,37 2,46* Net debt (679) (685) Shareholders funds,390,4* Gearing 49% 49%* * restated for FRS 9 includes joint ventures & associates

13 Republic share purchase! Acquisition of remaining minority interests in Republic Hotels & Resorts (RHR) for 37m! RHR to become a whollyowned owned subsidiary! Enables flexible & efficient resource management

14 John Wilson C H I E F E X E C U T I V E O F F I C E R

15 Key developments, H! Local focus to maintain & improve market share! Short reporting lines enable close control! Continued monitoring of costsaving saving initiatives! Targeted investment to maintain quality! Further progress with management contracts

16 New York City! Focus on driving volume Occupancy levels increased! Recovery of conference & meetings market Since January 2002! Strong competitive positioning Flexible meeting facilities, e.g. Millennium Broadway Hotels enhanced by recent investment

17 Millenium Hilton, NYC Update on insurance claims! Business interruption! Asset replacement " Focus on refit for 2003 reopening

18 Rest of US! Market continues very challenging, especially for convention business! Large hotels require intensive sales effort Biltmore St Louis Cincinnati! Hotels enhanced by recent investment! Vigorous cost control throughout the US

19 London! Fewer US business arrivals & long haul visitors! Deliberate drive for volume as rate softens! Targeted price reductions! Continuing investment in high quality hotels Bedroom refurbishment at Copthorne Tara Upgrading of infrastructure at Millennium Gloucester

20 Rest of Europe! Regional UK! Air traffic decline impacts Gatwick area! Reviewing options to maximise returns! Continental Europe! Paris airport rates resilient! New theatre operator at Stuttgart complex

21 Asia! Most key markets continuing to strengthen! Seoul Benefiting from strong economy & World Cup! Singapore Increased level of intraregional regional arrivals M hotel successfully repositioned Upgrading of Copthorne King s, completion June 2003! Taipei Top class hotel, strongly placed for growth

22 Australasia! New Zealand hotels benefiting from increased visitor numbers + recent investment! Reviewing ways to improve performance of Millennium Sydney! Nonhotel activities performing well Continuing strong growth of Sydney retail centre Good progress with NZ land development activity

23 Current trading & outlook! Focus on maximising yield in local markets! Continuing cost monitoring! Challenging trading environment persists! Full year performance expected to show improvement on 200

24 M I L L E N N I U M & C O P T H O R N E H O T E L S Appendix

25 Portfolio information Total Hotels Rooms % of Total Rooms Owned Hotels Rooms Leased Hotels Rooms Mgt. Contract Hotels Rooms Franchise Hotels Rooms New York 4 2, , Other US 6 5, , Total US 20 7, , ,402 South America 7 7 London 5 2, ,226 Regional UK 2,856 7,76 40 Other Europe 5, Total Europe 22 5, , Asia 3 6, ,003 2, Australasia 29 3, , Middle East & North Africa Total open properties 86 24, ,55 0 2,36 5 2,466 3,844 To be opened To be opened Total Portfolio 9 25, ,55 0 2,36 5 2, ,937 Brand analysis Millennium 32 0, ,872 4,243 7,558 Copthorne 27 5, , Quality 6, , Third party brand 6 7, , ,466 7 Total portfolio 9 25, ,55 0 2,36 5 2, ,937 Leased hotels comprises hotels with an unexpired lease term of less than 50 years