Mitchells & Butlers plc · LSE:MAB
Mitchells & Butlers — Six Continents — H1 2002 Earnings Presentation
30 slides from Mitchells & Butlers's earnings presentation, 2002
Slide 1: Six Continents
SIX CONTINENTS
Slide 2: Interim Results
Six Continents PLC Interim Results For the Half Year ended 13th April 2002 Tim Clarke - Chief Executive Richard North - Finance Director
Slide 3: Richard North, Finance Director
RICHARD NORTH Finance Director 3
Slide 4: Americas RevPAR Performance
Six Continents Hotels Americas RevPAR Performance 10.0% 5.0% 0.0% Oct-00 Nov-00 Dec-00 Jan-01 Feb-01 Mar-01 Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 (5.0%) (10.0%) % Growth (15.0%) (20.0%) (25.0%) (30.0%) (35.0%) (40.0%) Crowne Plaza Holiday Inn Expr
Slide 5: RevPAR - Key US Cities
Six Continents Hotels RevPAR - Key US Cities* 30.0% 20.0% 10.0% 0.0% Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- 00 00 00 01 01 01 01 01 01 01 01 01 01 01 01 02 02 02 02 (10.0%) % Growth (20.0%) (30.0%) (40.0%) (50.0%) (60.0%) New York Chicago SFO M
Slide 6: Holiday Inn UK RevPAR
Six Continents Hotels Holiday Inn UK RevPAR 10.0% 5.0% 0.0% -5.0% -10.0% % Growth -15.0% -20.0% -25.0% -30.0% -35.0% -40.0% Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 6
Slide 7: Operating Profit Hotels
Six Continents Hotels Operating Profit Hotels H1 01/02 H1 00/01 Growth $m $m % Owned & Leased 4 43 - 90.7 Managed & Upscale Franchise 20 25 - 20.0 Midscale Franchise 83 98 - 15.3 Total Americas 107 166 - 35.5 EMEA 72 111 - 35.1 Asia Pacific 20 15 + 33.3 FelCor and Others 8 22 - 63.6 Central Overhead
Slide 8: EMEA
Six Continents Hotels EMEA H1 01/02 H1 00/01 Decline % Reported ($m) 72 111 - 35.1 Sterling analysis: £m £m Owned & leased 37 60 - 38.3 Managed & franchised 13 17 - 23.5 Total £m 50 77 - 35.1 8
Slide 9: Asia Pacific
Six Continents Hotels Asia Pacific RevPAR Q1 01/02 Q2 01/02 H1 01/02 Owned & Leased - 21.1% - 12.5% - 16.9% Managed - 11.0% - 6.4% - 8.8% First time contribution from Inter-Continental Hong Kong $7m Operating profit up by 33.3% 9
Slide 10: Retail Operating Profit
Six Continents Retail Operating Profit H1 01/02 H1 00/01 Growth £m £m % Restaurants 45 39 + 15.4 Pubs & Bars 101 96 + 5.2 Ongoing Business 146 135 + 8.1 Disposal to Nomura - 31 n/a Reported 146 166 - 12.0 10
Slide 11: Retail Development Estate
Six Continents Retail Development Estate z 337 re-opened, 16 in refurbishment z Target over 400 re-opened by year end z Sales uplifts over 40% versus last year of Allied ownership 11
Slide 12: Britvic Soft Drinks Results
Britvic Soft Drinks Results z Volumes up 3.5% z Average realised price per litre up 0.9% z Turnover up 4.3% to £291m z Profit margin up 1.6 percentage points Operating profit up 45.5% to £16m 12
Slide 13: Profit and Loss Account
Six Continents PLC Profit and Loss Account £m H1 01/02 H1 00/01 * Growth % Operating profit 275 365 - 24.7 Minor exceptionals (1) 1 - PBIT 274 366 - 25.1 Interest (32) (29) - 10.3 Tax (75) (104) + 27.9 Minority Interests (6) (5) - 20.0 Adjusted Earnings 161 228 - 29.4 Adjusted EPS 18.7p 26.4p - 29.2
Slide 14: Tim Clarke, Chief Executive
TIM CLARKE Chief Executive 14
Slide 15: Growth Prospects
Six Continents Hotels Growth Prospects Market Forces Pace of RevPAR recovery Favourable supply trends RevPAR Management Actions Hotel rooms Revenue investment Renovated assets New Distribution 15
Slide 16: RevPAR Recovery - Prospects
Six Continents Hotels RevPAR Recovery - Prospects z RevPAR recovery expected Return to cyclical economic trends following 9/11 Easing Autumn comparables Favourable medium-term US supply position z Uncertain pace of recovery Recovery of international travel European economic prospects z Man
Slide 17: Sales and Marketing Development
Six Continents Hotels Sales and Marketing Development z Driving international and corporate sales strengthened EMEA and Americas sales forces Focus on key multinational accounts z Cross-border advertising focus on European leisure market 17
Slide 18: Loyalty Programmes and New Delivery Channels
Six Continents Hotels Loyalty Programmes and New Delivery Channels z 1 million enrolments z 13.5 million members 18
Slide 19: Big 10: Coming Out of Renovation
Six Continents Hotels Big 10: Coming Out of Renovation Completed Projects In Renovation Rooms Start Finish Rooms Miami 639 Chicago 1/00 11/02 844 New York 686 Le Grand 12/01 6/03 514 Vienna 453 Mayfair 12/02 7/04 290 Budapest 398 Cannes 1/03 10/04 338 Madrid 307 San Francisco 380 19
Slide 20: Holiday Inn UK Renovation
Six Continents Hotels Holiday Inn UK Renovation 2002 2003 2004 Total Rooms Upgrading 2,000 3,000 2,000 7,000 % of total Rooms 17% 25% 17% 60% 20
Slide 21: Organic Pipeline
Six Continents - Organic Pipeline Will be a Key Driver of Growth Owned Managed/Franchised Brand Rooms Rooms Total 420 8,925 9,345 314 8,849 9,163 400 19,512 19,912 357 24,924 25,281 145 2,909 3,054 1,636 65,119 66,755 21
Slide 22: Six Continents Hotels - Summary
Six Continents Hotels - Summary z Action to defend profits Upscale exposure Resilient franchise Maintained investment plans z Driving future growth RevPAR recovery Revenue investment & cost re-engineering Big 10 Inter-Continentals Holiday Inn UK Organic pipeline 22
Slide 23: Retail
Six Continents Retail z 2,000 pubs, bars and restaurants - AWT £14.2k up 6% z Defending margins against cost pressures z Driving high sales uplifts and returns from development pipeline z Exploiting segment opportunities to gain market share Well positioned as industry capacity cycle continues to im
Slide 24: Brand Development: Target Segments
Six Continents Retail Brand development: Target segments Residential Pubs Pub 42% Restaurants 27% Drinks Food led led Bars Restaurants 27% City Centre 4% Note: Percentages represent split of SCR UK outlets (excluding Bowling, Bowling, Hotels) 24
Slide 25: Site Acquisitions
Six Continents Retail Site Acquisitions Harvester 25
Slide 26: Base Profit Drivers
Six Continents Retail Base Profit Drivers z Regulatory-driven costs absorbed £20m this year: estimated £9m in 02/03 z Like-for-like performance Price/volume trade off Central London and High Street versus Suburbs z Defending margins Purchasing scale Retail staff productivity Reducing ove
Slide 27: Conversion Potential
Six Continents Retail Conversion Potential H1 01/02 Branded 1,090 15% Operating format 65 returns Individual character 140 Identified pipeline 600 27
Slide 28: Growing the Business
Six Continents Retail Growing the business z Improving industry environment z Leveraging scale and driving efficiencies z Exploiting segment opportunities Main focus on suburbia z Flow of new product development z Further growth from strong conversion pipeline and selective site acquisitions 28
Slide 29: Summary and Outlook
Six Continents PLC z Strong growth prospects Favourable industry cycle Benefit of continued investment z Short-term outlook z Corporate investment strategy 29
Slide 30: Six Continents
SIX CONTINENTS