WELCOME TO OUR WORLD OF HOSPITALITY - HALF YEAR 2018 RESULTS PRESENTATION MILLENNIUM & COPTHORNE HOTELS PLC - Millennium & Copthorne Hotels plc
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WELCOME TO
OUR WORLD OF
HOSPITALITY
Mayfair London – artist’s impression
MILLENNIUM & COPTHORNE HOTELS PLC
HALF YEAR 2018
RESULTS PRESENTATION
03rd AUGUST 2018
M Social Auckland
INTRODUCTION Kwek Leng Beng, Chairman Mayfair London – artist’s impression
H1 2018 HIGHLIGHTS
H1 H1
£m % Change
2018 2017
Revenue 477 485 1.6%
- at constant rates 477 463 3.0%
Profit before tax 65 63 3.2%
- at constant rates 65 61 6.6%
Gearing (vs. Dec 2017) 25.0% 24.3% 0.7% pts.
Basic EPS 8.5p 12.8p 33.6%
Ordinary dividend per share 2.08p 2.08p -
FINANCIAL REVIEW
Kok-Kee Chong, Chief Financial Officer
Mayfair London – artist’s impression
TOTAL REVENUE
REVENUE DOWN BY 1.6% (reported rate)
£m REVENUE H117 to H118
6
500
5 3
480
(22)
485
460 477
440
Revenue Hotel REIT Property Forex Revenue
H1 2017 impact H1 2018
• Revenue at reported rate is down by £8m or 1.6%. • Property revenues are up by £6m at constant currency largely
due to higher New Zealand residential section sales.
• Revenue at constant rate is up £14m or 3.0%.
• The strengthening of the pound sterling during the period had
• Hotel revenues have increased by £5m or 1.3% at
a negative foreign exchange impact of £22m on the
constant currency.
comparative for H118.
• REIT revenues are up by £3m.HOTEL REVENUE
HOTEL REVENUE DOWN BY 3.3% (reported rate)
£m Hotel Revenue H117 to H118
450
6
1 4
(6)
400 (19)
418
404
350
Hotel revenue New M Social Underlying Mayfair Forex Hotel revenue
H1 2017 Plymouth Auckland refurbishment impact H1 2018
• The Waterfront Hotel in New Plymouth was added to the • Phased refurbishment work on Millennium Hotel London
Australasian hotel portfolio in February 2018. Mayfair commenced in the fourth quarter of 2017
resulting in loss of revenue during 2018.
• M Social Auckland (previously Copthorne Hotel Auckland
Harbourcity) re-opened in October 2017. Full year of • The stronger pound sterling had a negative foreign
trading in 2018. exchange impact on the comparative for H118. Excluding
this impact, hotel revenues are up £5m (1.3%).
• Underlying hotel revenues are up largely due to higher
contributions from One UN (re-branded in August 2017).OPERATING PROFIT AND PROFIT BEFORE TAX
OPERATING PROFIT UP BY 1.4% (reported rate)
PBT UP 3.2% (reported rate)
£m Operating Profit H117 to H118
90 9
80 8
(9) (3)
70 (1)
69 (3) 70
60
Op Profit REIT & Impairment Other Hotels Central Forex Op Profit
H1 2017 Property Income Costs H1 2018
• Operating profit is up £1m (1.4%) in reported rate. £m PBT H117 to H118
70 2
• Positive property (including REIT) movement of £8m. 4
(1)
(3)
• No impairment recognised in H118. £9m impairment 60
63 65
recorded in H117.
• Strengthening of the pound sterling resulted in a negative 50
JV/Associates
PBT H1 2017
PBT H1 2018
Forex Impact
Net Finance cost
Operating Profit
foreign exchange impact of £3m on operating profit.
Share ofBUSINESS REVIEW Jennifer Fox, Group CEO Mayfair London – artist’s impression
BUSINESS REVIEW
Turnaround Priorities
• New Head of HR
o Review and develop value enhancing HR practices and programs
• New Group Chief Marketing Officer
o Define brand architecture and brands
o Review Sales, Pricing & Distribution Platforms
• Mayfair Refurbishment
o Deliver 5* flagship for re-opening Q1 2019
• Focus on US
o Broadway plan
• Profit Recovery & Optimization
o Address under-performing/loss making hotels
o Develop, implement and monitor asset plans for top hotels
o Top 26 hotels – driving 80% of profitREGIONAL REVPAR TRENDS
GROUP REVPAR UP BY 0.5% AT CONSTANT RATES
LFL GROUP REVPAR UP BY 2.0%
New York: RevPAR up driven
largely by the higher contribution
£ from ONE UN.
Rest of Asia: RevPAR up in most
hotels including Taipei and Seoul.
160
London: Excluding Mayfair which H1 2017*
saw a phased refurbishment 6.0%
Singapore: RevPAR down due
140 during the period, London H1 2018
to reduced occupancy. Higher
RevPAR was down by 4.4%.
room rates partly offsets the
decline.
Restated at H1 2018 rates *
120
(15.1%)
100
141.11 (0.4%)
133.13 7.3%
80 5.5%
101.38 (1.6%)
86.06
4.9%
60 81.00 80.65
69.55 74.64
56.16 55.25 59.47 62.75
52.10 54.67
40
London Rest of New York Regional US Singapore Rest of Asia Australasia
Europe
Rest of Europe: RevPAR up due to increase in Regional US: RevPAR down driven Australasia: Excluding M Social and
occupancy and average room rate of 1.0% points mainly by drop in occupancy. New Plymouth, RevPAR up by 4.5%.
and 3.5% respectively.THANK YOU 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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