Intercontinental Hotels Group Plc · LSE:IHG
Intercontinental Hotels — H1 2005 Earnings Presentation
93 slides from Intercontinental Hotels's earnings presentation, Sep 8, 2005
Slide 1: InterContinental Hotels Group Interim Results Presentation
InterContinental Hotels Group Interim Results Presentation 8th September 2005
Slide 2: Andrew Cosslett, Chief Executive
Andrew Cosslett Chief Executive
Slide 3: Agenda
Agenda Half Year Business Financial Headlines Q&A Results Plan Profile
Slide 4: The headlines
Headlines The headlines . . . • Hotels EBIT up 33% with continuing business trading strongly • Sale of ANZ portfolio and Paris for £384m, 25% above NBV • Announcing further £250m share buyback • Retain up to £1bn of current O&L estate; intention to sell ca. £600m • Focus on owners to accelerate grow
Slide 5: Agenda
Agenda Half Year Business Financial Headlines Q&A Results Plan Profile
Slide 6: Richard Solomons, Finance Director
Richard Solomons Finance Director
Slide 7: Highlights
Highlights • Strong Hotels trading, Hotels operating profit up 33% – Up 14% excluding IFRS held for sale depreciation benefit – Up 34% on a continuing basis • Britvic operating profit up 5% • Adjusted EPS up 27% • Group cash flow from operations £140m • Interim dividend increased by 7% to 4.6p per s
Slide 8: Group profit & loss account
Group profit & loss account 6 mths to 6 mths to Change £m 30 Jun 05 30 Jun 04 % Turnover 1,060 1,101 (3.7) EBITDA* 257 248 3.6 Operating profit* 192 152 26.3 Interest* (18) (10) 80.0 Profit before tax* 174 142 22.5 Tax rate* 29% 18% n/a Adjusted earnings per share* 18.1p 14.2p 27.5 Weighted average
Slide 9: Continuing Hotels profit & loss account
Continuing Hotels profit & loss account 6 mths to 6 mths to Change £m 30 Jun 05 30 Jun 04 % Turnover 446 399 11.8 EBITDA* 128 103 24.3 Operating profit* 91 68 33.8 • Continuing business excludes – Assets sold – Assets on the market at 30 June 2005 * Excludes special items
Slide 10: Hotels operating profit
Hotels operating profit 6 mths to 6 mths to Change £m 30 Jun 05* 30 Jun 04* % Hotels Owned & Leased 80 57 40.4 continuing operations 18 10 80.0 Managed 31 25 24.0 Franchised 103 91 13.2 Total pre overheads 214 173 23.7 Regional/Central Overheads (61) (58) 5.2 Hotels Operating Profit 153 115 33.0 Hot
Slide 11: Strong growth in fee income business
Strong growth in fee income business Managed & Franchised Operating • Managed and franchised Profit H1 2004 – H1 2005, £m operating profit up 16%* 160 134 • Higher royalties & fees 140 116 – RevPAR up 9.2% 120 – 22,500 (5%) increase in managed 100 and franchised rooms; 18,900 80 transferred from own
Slide 12: RevPAR growth across the portfolio
RevPAR growth across the portfolio H1 2005 RevPAR change, IHG estate v segment 16% IHG Segment 14% 12% 10% 8% 6% 4% 2% 0% US IC US CP US HI US EX US SBS US CN HIUK HIUK London Regions
Slide 13: Record pipeline
Record pipeline • Pipeline up almost 7,000 rooms to 89,600 Signings, ‘000 rooms – 76% in US, UK and China 30 – 60,800 rooms are Holiday Inn and Express – 24,200 upscale rooms 20 Growth Growth 27% 27% • 27,200 rooms signed 10 – 27% growth compared to same period last year – 17,600 rooms were Holiday
Slide 14: 3,500 net rooms added
3,500 net rooms added • 16,900 rooms opened, 60% new build, 26% upscale – 65% of room openings in US, UK and China Crowne Plaza Pudong, Shanghai • 13,400 room exits – 50% of exits IHG enforced – 9,000 exits were Americas Holiday Inn and Express InterContinental Cyprus • Termination of South African
Slide 15: Britvic – market share gains and profit growth
Britvic – market share gains and profit growth • Branded volume up 5% to 747 million litres • Turnover up 1% to £370m • Trading conditions highly competitive; decline in average prices seen across the market • Market share gains by value and volume for Pepsi, Tango, Fruit Shoot and J2O • Operating p
Slide 16: Cash flow
Cash flow 6 mths to 6 mths to £m 30 Jun 05 30 Jun 04 Operating Profit* 192 152 Depreciation / Amortisation 65 96 Working capital (89) (2) Pension obligation (27) (4) Other (1) (8) Cash flow from operations 140 234 Hotels 154 174 Soft Drinks (14) 60 Capital Expenditure (90) (109) Net Debt (5) (520) *
Slide 17: Continuing Hotels free cash flow
Continuing Hotels free cash flow 6 mths to 6 mths to £m 30 Jun 05* 30 Jun 04* Group EBITDA* 257 248 Less Britvic EBITDA (64) (60) Less discontinued business EBITDA (65) (85) Continuing hotels business EBITDA* 128 103 Maintenance capital expenditure (29) (46) Free cash flow 99 57 * Excludes special i
Slide 18: Disposal programme
Disposal programme • £2.2bn of hotels sold to date, at approximately net book value: – InterContinental Paris sold today to GIC Real Estate for €315m, €65m ahead of NBV • Intention to dispose further assets – 5 hotels with approximately £45m NBV on the market – Further hotels with NBV ca. £600m, pre
Slide 19: Balanced use of surplus cash
Balanced use of surplus cash • Total returns to Shareholders now £2.25bn – £1.9bn returned to date – £122m remaining of current share buyback – Further £250m share buyback • Level of further returns will be influenced by gearing and investment needs • Appropriately leveraged balance sheet • Investme
Slide 20: Current trading
Current trading • US, UK, Middle East and Asia strong trading continues • Performance in Continental Europe is varied – Mid-scale hotels continue to improve but, trading at several owned InterContinentals has been impacted • Limited impact so far from terrorist activity in London • InterContinental
Slide 21: Highlights
Highlights • Strong Hotels trading, Hotels operating profit up 33% – Up 14% excluding IFRS held for sale depreciation benefit – Up 34% on a continuing basis • Britvic operating profit up 5% • Adjusted EPS up 27% • Group cash flow from operations £140m • Interim dividend increased by 7% to 4.6p per s
Slide 22: Agenda
Agenda Half Year Business Financial Headlines Q&A Results Plan Profile
Slide 23: Slide 23
Slide 24: If it fits in, it goes on
IF IT FITS IN, IT GOES ON
Slide 25: Nominal private consumption per capita, G8
20000 Nominal private consumption per capita, G8, nominal $; CAGR = 3.3% 15000 10000 5000 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Slide 26: Slide 26
Slide 27: Top 10 companies by room count
0 50000 100000 150000 200000 250000 300000 350000 400000 450000 500000 InterContinental 550000 Hotels Group Cendant Corporation Marriott International Sourc e: Company 2004 10K and publicly disclosed information Accor Choice Hotels Hilton Hotels Corporation Best Western Starw ood Hotels and Resorts
Slide 28: 3 year business plan
Business Plan 3 year business plan 1. Goal 2. Target Faster growth by By end 2008: making IHG’s brands Net, organic growth of the first-choice for 50,000 - 60,000 rooms guests and hotel owners 3. Strategy 4. Priorities Build the industry’s • Brand performance strongest operating system • Excellent h
Slide 29: Goal: making IHG's brands first choice
Business Plan 3 year business plan 1. Goal Faster growth by making IHG’s brands the first-choice for guests and hotel owners
Slide 30: Owner relationships increasingly important
Business Plan Owner relationships increasingly important 100% % of hotels pre-overhead USD profit 90% 80% 70% 63% 88% M&F 60% O&L 50% 40% 30% 20% 10% 0% 2004 2005 H1 (Actual – Hotels) (Continuing Business – Hotels) Sourc e: IHG reported financi al data
Slide 31: 3 year business plan
Business Plan 3 year business plan 1. Goal 2. Target Faster growth by By end 2008: making IHG’s brands Net, organic growth of the first-choice for 50,000 - 60,000 rooms guests and hotel owners 3. Strategy 4. Priorities Build the industry’s • Brand performance strongest operating system • Excellent h
Slide 32: Target: 50,000-60,000 net organic rooms by 2008
Business Plan 3 year business plan 2. Target By end 2008: Net, organic growth of 50,000 - 60,000 rooms
Slide 33: Significant lift in net rooms growth
Business Plan Significant lift in net rooms growth Room count, ‘000 rooms 2001 – 2008F 588 - 598 • Low level of organic 600 growth since 2001 590 580 CAGR CAGR2001-05 2001-05 ==0.8% • New target will be step 570 CAGR 0.8% CAGR 2005––08F 2005 08F change in growth rate 560 ==2.6 - 3.1% 2.6 - 3.1% 550
Slide 34: 3 year business plan
Business Plan 3 year business plan 1. Goal 2. Target Faster growth by By end 2008: making IHG’s brands Net, organic growth of the first-choice for 50,000 - 60,000 rooms guests and hotel owners 3. Strategy 4. Priorities Build the industry’s • Brand performance strongest operating system • Excellent h
Slide 35: Build the industry's strongest operating system
Business Plan 3 year business plan 3. Strategy Build the industry’s strongest operating system focused on the biggest markets and segments where scale really counts
Slide 36: Growth across all branded segments
Growth across all 3 branded segments with Business Plan sizeable opportunity as independents convert Size and growth estimates by segment, major global countries*, 2004 250 250 200 200 Rooms revenue, $bn 150 Growth 150 Independent 2003/4 100 100 Upscale 11% 50 50 Midscale 10% Economy 9% 0 0 2004 200
Slide 37: Scale in key markets is an IHG strength
Business Plan Scale in key markets is an IHG strength # Top 3 positions • Top 12 countries account for 77% of global hotel market* IHG 6 • IHG “top 3” positions: – USA, China, UK, Mexico, Marriott 4 Canada, Australia • Significant scale: Accor 3 – France, Germany, Thailand, Italy Starwood 2 • Opport
Slide 38: 12 markets take 66% of outbound traffic
. . . and these 12 markets take 66% of all outbound Business Plan traffic, with China growing fast 10 90m 8 stays 7 5 100m 1 6 4 stays p.a. 3 2 by 2020 9 156m stays 11 38m stays 12 Sourc e: WTO/GTN Anal ysis J une 2005
Slide 39: Build the industry's strongest operating system
Business Plan 3 year business plan 3. Strategy Build the industry’s strongest operating system focused on the biggest markets and segments where scale really counts
Slide 40: IHG operating system – a solid foundation
Business IHG operating system – a solid foundation to build on Plan Hotel Hoteldistribution distribution Brand Brandportfolio portfolio Loyalty Loyaltyprogramme programme 3,600 3,600hotels, hotels,120 120 Two Twoiconic iconicbrands; brands; PCR PCR26m 26mmembers members - - million stays p.a. millio
Slide 41: 3 year business plan
Business Plan 3 year business plan 1. Goal 2. Target Faster growth by By end 2008: making IHG’s brands Net, organic growth of the first-choice for 50,000 - 60,000 rooms guests and hotel owners 3. Strategy 4. Priorities Build the industry’s • Brand performance strongest operating system • Excellent h
Slide 42: Priorities
Business Plan 3 year business plan 4. Priorities • Brand performance • Excellent hotel returns • Market scale/knowledge • Aligned organisation
Slide 43: The breadth of our brand portfolio is important
Brand portfolio The breadth of our brand portfolio is important • Accommodates majority of development opportunities • Deepens owners relationships with IHG • Fits trend to wider guest stay repertoire • Presents IHG as “One stop shop” for corporate accounts • Drives efficiencies from common platform
Slide 44: The brands – from strength to strength
Brand portfolio The brands – from strength to strength Clear strengths … Future focus … • Two global icons • Sharper brand strategies • Brands growing • New brand standards • High preference in new markets • Continued quality focus • Good ROI for owners • Leverage brand value • Building record of in
Slide 45: The brand opportunity
Brand portfolio The brand opportunity . . . Awareness • Hotel industry not historically focused on brand management Trial • Opportunity for marketing disciplines to be applied Preference • Systematic approach will be adopted and rolled-out Frequency • Building brand loyalty drives hotel owner return
Slide 46: World's favourite hotel brand
Brand portfolio “World’s favourite hotel brand” • Global midscale #1 Key Initiatives: • Generates $10bn total revenue* • Develop Holiday Inn brand identity • 68% of IHG system room revenue • Drive innovation and quality standards • 25% revenue growth 2002-05** • Drive global distribution • High awar
Slide 47: Holiday Inn brand family
Brand portfolio Holiday Inn brand family Upscale Business Leisure Budget
Slide 48: Quality programme has made a real difference
Brand portfolio Quality programme has made a real difference Age distribution of Holiday Inn Family US estate, 1995 - 2005 Average Age = 2500 12 years 2000 Average Age = 16 years # of hotels 1500 1000 500 0 1995 2005 0 - 5 years 5 - 10 years 10 - 20 years 20+ years Sourc e: IHG Anal ysis
Slide 49: Let me show you what I mean
Brand portfolio Let me show you what I mean . . .
Slide 50: Holiday Inn reduced age of estate in US
Brand portfolio Holiday Inn family one of only two brands to reduce age of estate in US over last 10 years Average age of US estate, years, 2005 18 16 16 14 14 12 12 10 9 9 Hyatt Hilton Best Sheraton Marriott Holiday Days Inn Ramada Comfort Hampton Western Inn Change in age of US estate, years, 1995
Slide 51: Holiday Inn scores highly with US guests
Brand portfolio Holiday Inn scores highly with US guests 41 Top 3 brand preference (business), US, 2005 37 32 14 13 12 9 11 8 5 Marriott Holiday Hilton Best Ramada Comfort Sheraton Hyatt Hampton Days Inn Inn Western 44 Top 3 brand preference (leisure), US, 2005 31 19 18 13 11 9 9 9 9 Holiday Marriot
Slide 52: Holiday Inn – driving distribution outside the US
Brand portfolio Holiday Inn – driving distribution outside the US Total rooms in Holiday Inn brand outside Americas region, ‘000 • Momentum in EMEA and AP: 100 – UK Stardon and QMH 90 80 • 4,000 Holiday Inn/Express 70 CAGR = added in last 6 months: 8.5% 60 – 16,000 in pipeline 50 40 • New Holiday In
Slide 53: Do you live an InterContinental life?
Brand portfolio “Do you live an InterContinental life?” • Anchors the IHG portfolio Key Initiatives: • Rich 50 year heritage • Develop the asset base • Estate steady at 136 hotels: • Global brand evolution – Average quality improved through churn of 28 hotels • Strengthen dedicated InterContinental
Slide 54: InterContinental - asset development
Brand portfolio InterContinental - asset development Investment in ‘flagships’ New resorts & anchor cities Bora Bora Le Grand, Paris New York Hong Kong Boston
Slide 55: InterContinental brand evolution
Brand portfolio InterContinental brand evolution
Slide 56: InterContinental brand evolution
Brand portfolio InterContinental brand evolution
Slide 57: InterContinental brand evolution
Brand portfolio InterContinental brand evolution
Slide 58: Tailoring our approach to InterContinental
Brand portfolio Tailoring our approach to InterContinental • Most support processes and functions common to all IHG brands BUT . . . InterContinental requires different “front-end” focus • Stronger dedicated teams within IHG structure: – Development teams in EMEA and Americas – Hotel operations team
Slide 59: 3 year business plan
Business Plan 3 year business plan 1. Goal 2. Target Faster growth by By end 2008: making IHG’s brands Net, organic growth of the first-choice for 50,000 - 60,000 rooms guests and hotel owners 3. Strategy 4. Priorities Build the industry’s • Brand performance strongest operating system • Excellent h
Slide 60: Priorities
Business Plan 3 year business plan 4. Priorities • Brand performance • Excellent hotel returns • Market scale/knowledge • Aligned organisation
Slide 61: Driving hotel delivery
Hotel Returns Driving hotel “delivery” Reservation channel revenue, $bn Priority Club Rewards total revenue, $bn 2.5 2.4 2.5 2.1 2.0 2.0 1.8 1.6 1.5 1.5 1.0 IHG IHGchannels channels 1.0 PCR PCRmembers members deliver deliver almost42% almost 42% contribute contribute32% 32%ofof ofoftotal hotel room
Slide 62: Driving hotel returns – agenda
Hotel Returns Driving hotel returns – agenda • Strengthen front end delivery systems: – IT infrastructure and support – Link Priority Club Rewards and brand programmes • Improve hotel efficiency and operating processes: – Standardise approach around the world – Increase innovation and knowledge shar
Slide 63: 3 year business plan
Business Plan 3 year business plan 1. Goal 2. Target Faster growth by By end 2008: making IHG’s brands Net, organic growth of the first-choice for 50,000 - 60,000 rooms guests and hotel owners 3. Strategy 4. Priorities Build the industry’s • Brand performance strongest operating system • Excellent h
Slide 64: Priorities
Business Plan 3 year business plan 4. Priorities • Brand performance • Excellent hotel returns • Market scale/knowledge • Aligned organisation
Slide 65: Using our market scale and knowledge
Market Know led ge Using our market scale and knowledge • Step-up the rollout of our brands • Strengthen development teams • Smart use of capital to capture upscale opportunities: Crowne Plaza, Phuket – e.g. InterContinental Beijing • Track outbound guest flows to leverage brand awareness Staybridge
Slide 66: China is a great example of leveraging our scale
Market Know led ge China is a great example of leveraging our scale Since 1984 … In The Future … • 47 hotels open; pipeline of 28 • Infrastructure investment driving domestic demand • Brands have built premium image • Forecast boom in international • Shanghai head office - 60 strong travel by 2020:
Slide 67: Recent China openings reinforce brand image
Market Know led ge Recent China openings reinforce brand image InterContinental, Beijing Crowne Plaza, Pudong, Shanghai
Slide 68: 3 year business plan
Business Plan 3 year business plan 1. Goal 2. Target Faster growth by By end 2008: making IHG’s brands Net, organic growth of the first-choice for 50,000 - 60,000 rooms guests and hotel owners 3. Strategy 4. Priorities Build the industry’s • Brand performance strongest operating system • Excellent h
Slide 69: Priorities
Business Plan 3 year business plan 4. Priorities • Brand performance • Excellent hotel returns • Market scale/knowledge • Aligned organisation
Slide 70: Align the organisation
Align the organisation Organis ation • Join up our teams around the world • Upweight growth critical capabilities • Build on our owner focused culture • Tailor organisation to different owner needs • Developing CSR agenda
Slide 71: Agenda
Agenda Half Year Business Financial Headlines Q&A Results Plan Profile
Slide 72: Improved financial profile
Financial Profile Improved financial profile • Managed & Franchised business model is very attractive: – Healthy cash generation from core business: £99m in 2005 H1 – Attractive return on investment – Resilient, high quality earnings • Strong organic growth prospects with modest capital needs • Able
Slide 73: P&L investment & capital deployment
Financial Profile P&L investment & capital deployment P&L Investment Capital Deployment • Management cost focus remains: • £60 - 80m capex for annual maintenance and central systems – Overhead base is very scaleable – Intent to rebalance costs • Selective opportunities to deploy acceleration capital
Slide 74: 3 year business plan
Financial Profile 3 year business plan 1. Goal 2. Target Faster growth by By end 2008: making IHG’s brands Net, organic growth of the first-choice for 50,000 - 60,000 rooms guests and hotel owners 3. Strategy 4. Priorities Build the industry’s • Brand performance strongest operating system • Excelle
Slide 75: Strategy into action
Financial Profile Strategy into action Crowne Plaza, Kuala Lumpur Holiday Inn, Kuala “Rebranding Lumpur our hotel as a Crowne Plaza has resulted in higher occupancy, higher rates, and significantly improved performance. IHG powerful system delivery tools have made the crucial InterContinental, Hanoi
Slide 76: Agenda
Agenda Half Year Business Financial Headlines Q&A Results Plan Profile
Slide 77: InterContinental Hotels Group Interim Results Presentation
InterContinental Hotels Group Interim Results Presentation 8th September 2005
Slide 78: Supplementary Information June 2005
Supplementary Information 30 June 2005
Slide 79: Index
Index RevPAR - 3 months to 30 June 2005 RevPAR - 6 months to 30 June 2005 Current Trading System Size at 30 June 2005 Pipeline at 30 June 2005 Operating Profit – UK GAAP to IFRS 2004 IFRS Group operating profit, shareholders equity and EPS by quarter
Slide 80: Explanatory Notes
Explanatory Notes • We have disclosed Owned and Leased RevPAR on a comparable basis. • Owned and Leased comparable RevPAR reflects performance this year compared to the same period last year for Owned and Leased hotels that have traded in both years. This excludes new builds, brand changes, properti
Slide 81: RevPAR – 3 Months to 30 June 2005 Owned/Leased & Managed
RevPAR – 3 Months to 30 June 2005 Owned/Leased Comparable & Managed Owned & Leased Comparable Managed Occ % ADR RevPAR Occ % ADR RevPAR 2005 Pts 2005 Growth 2005 Growth 2005 Pts 2005 Growth 2005 Growth InterContinental 78.9% 1.3% 222.35 9.0% 175.51 10.9% 71.2% 15.5% 142.49 13.9% 101.50 45.6% Crowne
Slide 82: RevPAR – 3 Months to 30 June 2005 Franchised & Total
RevPAR – 3 Months to 30 June 2005 Franchised & Total Franchised Total Occ % ADR RevPAR Occ % ADR RevPAR 2005 Pts 2005 Growth 2005 Growth 2005 Pts 2005 Growth 2005 Growth InterContinental 60.2% 6.1% 105.14 (10.6%) 63.30 (0.5%) 68.2% 7.4% 141.04 0.5% 96.14 12.7% Crowne Plaza 64.5% 0.6% 97.83 13.2% 63.
Slide 83: RevPAR – 6 Months to 30 June 2005 Owned/Leased & Managed
RevPAR – 6 Months to 30 June 2005 Owned/Leased Comparable & Managed Owned & Leased Comparable Managed Occ % ADR RevPAR Occ % ADR RevPAR 2005 Pts 2005 Growth 2005 Growth 2005 Pts 2005 Growth 2005 Growth InterContinental 71.4% 1.8% 210.30 8.3% 150.14 11.2% 66.5% 11.8% 137.71 13.1% 91.56 37.5% Crowne P
Slide 84: RevPAR – 6 Months to 30 June 2005 Franchised & Total
RevPAR – 6 Months to 30 June 2005 Franchised & Total Franchised Total Occ % ADR RevPAR Occ % ADR RevPAR 2005 Pts 2005 Growth 2005 Growth 2005 Pts 2005 Growth 2005 Growth InterContinental 61.9% 4.4% 110.87 (2.7%) 68.62 4.7% 65.5% 5.4% 139.87 2.7% 91.57 11.9% Crowne Plaza 62.2% (0.8%) 97.49 12.3% 60.5
Slide 85: Current Trading – RevPAR Growth
Current Trading – RevPAR Growth Current Trading REVPAR US$ January February March April May June July Qtr1 Qtr2 First Half YTD July US - InterContinental 13.9% 4.1% 6.8% 10.5% 20.8% 10.3% 16.9% 7.9% 13.5% 10.9% 11.5% US - Crowne Plaza 7.2% 8.8% 6.1% 17.9% 9.4% 7.4% 8.1% 7.2% 11.4% 9.5% 9.3% US - Hol
Slide 86: Current Trading – Occupancy Growth
Current Trading – Occupancy Growth (% points) Current Trading Occupancy % January February March April May June July Qtr1 Qtr2 First Half YTD July US - InterContinental 3.4% 0.0% 1.6% 2.3% 12.9% 4.7% 7.7% 1.7% 6.3% 4.0% 4.6% US - Crowne Plaza (0.9%) (1.0%) (1.7%) 2.7% (0.4%) 0.1% 0.1% (1.3%) 0.8% (0
Slide 87: Current Trading – Average Daily Rate Growth
Current Trading – Average Daily Rate Growth Current Trading Rate US$ January February March April May June July Qtr1 Qtr2 First Half YTD July US - InterContinental 7.8% 4.1% 4.5% 7.1% 2.4% 3.7% 4.5% 5.3% 4.4% 4.8% 4.6% US - Crowne Plaza 9.0% 10.6% 8.7% 13.3% 10.1% 7.3% 7.9% 9.4% 10.1% 9.8% 9.5% US -
Slide 88: System Size – Total at 30 June 2005
System Size – Total at 30 June 2005 Owned & Leased Managed Franchised Total Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms InterContinental 4 1,761 21 7,717 19 5,524 44 15,002 Crowne Plaza 1 293 22 7,989 100 26,547 123 34,829 Holiday Inn 5 1,882 55 17,373 992 181,246 1,052 200,501 Express - - 2
Slide 89: Pipeline – Total at 30 June 2005
Pipeline – Total at 30 June 2005 Owned & Leased Managed Franchised Total Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms InterContinental 1 420 2 1,130 1 300 4 1,850 Crowne Plaza - - - - 23 4,670 23 4,670 Holiday Inn - - - - 123 15,663 123 15,663 Express - - - - 349 29,309 349 29,309 Staybridge
Slide 90: Operating Profit – Reconciliation of UK GAAP to IFRS
Operating Profit – Reconciliation of UK GAAP to IFRS 6 months to Operating Other IFRS 2 Held for Sale 3 Operating 30 June 05 Profit Adjustments Depreciation Profit £m UK GAAP 1 IFRS Amer 91 2 4 97 EMEA 55 - 18 73 Asia 13 2 - 15 Central (28) (4) - (32) Total 131 - 22 153 Soft Drinks 43 (4) - 39 Group
Slide 91: 2004 Reconciliation of UK GAAP to IFRS
2004 Reconciliation of UK GAAP to IFRS 3 months ended: Operating Profit before special items 31 Mar 2004 30 Jun 2004 30 Sep 2004 31 Dec 2004 by quarter 2004 Group Group Group Group £m £m £m £m Profit before special items under UK GAAP 54 99 102 76 Adjustments: Goodwill amortisation 3 2 3 2 Pensions
Slide 92: 2004 Shareholders Equity - Reconciliation of UK GAAP to IFRS
2004 Shareholders Equity - Reconciliation of UK GAAP to IFRS 3 months ended: Shareholders Equity 31 Mar 2004 30 Jun 2004 30 Sep 2004 31 Dec 2004 by quarter 2004 Group Group Group Group £m £m £m £m IHG Shareholders equity under UK GAAP 2,551 2,637 2,650 1,977 Adjustments: Dividend accrual 70 30 30 62
Slide 93: 2004 IFRS EPS by Quarter
2004 IFRS EPS by Quarter 3 months ending: EPS by Quarter (IFRS) 31-Mar-04 30-Jun-04 30-Sep-04 31-Dec-04 Pence per share Basic EPS under IFRS 8.6 29.3 11.1 4.5 Exclude net special items -3.2 -20.5 -1.0 5.3 Adjusted EPS under IFRS 5.4 8.8 10.1 9.8 Note: Weighted Average share count (m) 737 718 703 682
InterContinental Hotels Group — H1 2005 Earnings Presentation on 6ix