Millennium & Copthorne Hotels New Zealand Limited · NZX:MCK
Millennium & Copthorne Hotels New Zealand — Millennium & Copthorne Hotels — FY2010 Earnings Presentation
39 slides from Millennium & Copthorne Hotels New Zealand's earnings presentation, February 2011
Slide 1: Final Results Presentation February 2011
Final Results Presentation February 2011
Slide 2: Introduction
Introduction RICHARD HARTMAN CEO
Slide 3: Introduction
Introduction RevPAR up 10.7% £61.06 (2009: £55.15) RevPAR growth in every region Headline PBT £128.5m (2009: £84.2m) Strong cash flows from operations of £166.9m (2009: £83.4m) Studio M opened in Singapore Good progress on asset management initiatives.
Slide 4: Introduction
Introduction RevPAR up 10.7% £61.06 (2009: £55.15) RevPAR growth in every region Headline PBT £128.5m (2009: £84.2m) Strong cash flows from operations of £166.9m (2009: £83.4m) Studio M opened in Singapore Good progress on asset management initiatives.
Slide 5: Financial Review
FINANCIAL REVIEW BENG LAN LOW SENIOR VICE PRESIDENT FINANCE
Slide 6: 2010 Financial Highlights
2010 Financial Highlights 31 Dec 31 Dec In Reported Currency (£) YoY 2010 2009 Revenue 743.7m 654.0m 13.7% Headline Operating Profit 144.1m 98.0m 47.0% Headline PBT 128.5m 84.2m 52.6% Headline PAT 95.4m 67.0m 42.4% Basic Earnings Per Share 30.9p 22.9p 34.9% Profit Before Tax 128.6m 81.9m 57.0% Profi
Slide 7: Group Headline Operating Profit Bridge
Group Headline Operating Profit Bridge 2009 Headline operating profit £98.0m Exchange rate movement £6.1m Like for like hotel trading £32.4m Property trading improvement £1.3m Joint ventures and associates increase £7.6m Studio M £2.9m Glyndebourne commissions and marketing costs (£4.3m) Other movem
Slide 8: Headline Operating Profit to PBT
Headline Operating Profit to PBT 31 Dec 31 Dec £ 2010 2009 Headline Operating Profit 144.1m 98.0m Other operating income and expense (5.3m) (2.4m) Share of joint ventures and associates net Other operating income 6.9m 0.6m Share of interest, tax & NCI JVs & associates (11.2m) (7.0m) Net Finance Cost
Slide 9: Other operating income and expense
Other operating income and expense £ 31 Dec 2010 31 Dec 2009 Other operating income and expense included in operating profit Gain on dilution of interest in CDLHT 7.2m - Orchid redundancy costs (1.7m) - Gain on acquisition of Beijing 0.3m - Net revaluation gain/(deficit) of investment properties 4.1
Slide 10: Tax
Tax 2010 £m PBT 128.6 Less Share of profit of JV & associates (24.8) (a) 103.8 Add back other operating expenses 5.2 (b) 109.0 Tax expense for the year (c) 30.7 Add back tax impact of other operating expenses 6.8 Deduct opening deferred tax adjustment (change in legislation) (11.9) Add back opening
Slide 11: Highlights of Cash Flows
Highlights of Cash Flows Selected activities £m Dec 2010 Dec 2009 Cash generated from operating activities (pre 142.2 83.4 Orchid working capital flows) Orchid development working capital flow 24.7 - Cash generated from operating activities 166.9 83.4 Acquisition of property, plant and equipment (18
Slide 12: Strong Balance Sheet
Strong Balance Sheet Selected Metrics Dec 2010 Dec 2009 Gearing 8.5% 11.6% Net debt £165.7m £202.5m Ave remaining duration of borrowings 24 months 27 months Ave interest rate of borrowings 2.21% 2.49% Interest cover 19.5x 10.6x Undrawn committed facilities £152.4m £178.8m Unencumbered assets £2,088.
Slide 13: Earnings Per Share
Earnings Per Share 30.9p 35.0p 29.1p 30.1p 30.0p 22.9p 25.0p 21.3p 20.3p 20.0p 2008 2009 15.0p 2010 10.0p 5.0p 0.0p Headline Basic
Slide 14: Dividend
Dividend 2010 2009 Interim 2.08p 2.08p 2nd interim - 4.17p Final 7.92p - Total dividend 10.00p 6.25p
Slide 15: First Sponsor Capital Limited
FIRST SPONSOR CAPITAL LIMITED WONG HONG REN EXECUTIVE DIRECTOR
Slide 16: Tee
Tee ALVA aI
Slide 17: First Sponsor Capital Limited
FIRST SPONSOR CAPITAL LIMITED
Slide 18: Slide 18
Slide 19: Chengdu Jiang An Project
Chengdu Jiang An Project MILLENNIUM & COPTHORNE HOTELS plc
Slide 20: Masterplan Chengdu Wenjiang Project
wa pS ed i] Masterplan Ww ARCHITECTS PTE LTD No fap TRE TS Pa ildgoeescia tle Rt resctaay nas ; pramppap SRW eS 24 NOVEMBER 2OLD RABI RAE CHENGDU WENJU\NG PROJECT
Slide 21: Slide 21
Slide 22: Lianzhou Cityspring
Lianzhou Cityspring zi MILLENNIUM & COPTHORNE HOTELS plc
Slide 23: Performance by Region
PERFORMANCE BY REGION RICHARD HARTMAN CEO
Slide 24: Full Year RevPAR By Region
Full Year RevPAR By Region £ 80.00 60.00 40.00 20.00 0.00 US Europe Asia NZ Group 2008 2009 2010 *At constant rates of exchange
Slide 25: Group
Group At constant rates of exchange Measure 2010 2009 YoY Occupancy 71.4% 68.3% 3.1pts Hotel GOP Ave Rate £85.52 £80.75 5.9% conversion 64% RevPAR £61.06 £55.15 10.7% Hotel £734.0m £668.1m 9.9% Revenue Hotel GOP £272.3m £230.2m 18.3%
Slide 26: Singapore
Singapore At constant rates of exchange Measure 2010 2009 YoY Occupancy 86.7% 78.0% 8.7pts Ave Rate £93.84 £80.66 16.3% RevPAR £81.36 £62.91 29.3% Hotel £140.9m £110.0m 28.1% Revenue Hotel GOP £76.1m £54.8m 38.9% EBIT £49.0m £38.7m 26.6%
Slide 27: Rest of Asia
Rest of Asia At constant rates of exchange Measure 2010 2009 YoY Acquired additional Occupancy 73.0% 69.5% 3.5pts 40% share in Grand Millennium Beijing to Ave Rate £77.45 £74.87 3.4% bring holding to 70%. RevPAR £56.54 £52.03 8.7% Hotel £137.6m £125.2m 9.9% Revenue Hotel GOP £53.8m £45.3m 18.8% EBIT
Slide 28: London
London Measure 2010 2009 YoY Occupancy 83.8% 84.2% (0.4pts) Ave Rate £107.45 £99.11 8.4% RevPAR £90.04 £83.45 7.9% Hotel £93.5m £88.0m 6.3% Revenue Hotel GOP £50.1m £46.4m 8.0% EBIT £37.1m £33.7m 10.1%
Slide 29: Rest of Europe
Rest of Europe At constant rates of exchange Measure 2010 2009 YoY Occupancy 69.7% 66.9% 2.8pts Ave Rate £73.22 £72.94 0.4% RevPAR £51.03 £48.80 4.6% Hotel £94.6m £91.2m 3.7% Revenue Hotel GOP £25.3m £23.4m 8.1% EBIT £4.2m £1.9m 121.1%
Slide 30: New York
New York At constant rates of exchange Measure 2010 2009 YoY Occupancy 85.2% 82.7% 2.5pts Ave Rate £152.03 £143.95 5.6% RevPAR £129.53 £119.05 8.8% Hotel £102.3m £96.0m 6.6% Revenue Hotel GOP £28.4m £24.4m 16.4% EBIT £10.3m £5.3m 94.3%
Slide 31: Regional US
Regional US At constant rates of exchange Measure 2010 2009 YoY Occupancy 56.7% 55.8% 0.9pts Ave Rate £65.64 £63.38 3.6% RevPAR £37.22 £35.37 5.2% Hotel £116.0m £111.2m 4.3% Revenue Hotel GOP £20.0m £18.3m 9.3% EBIT £0.1m (£4.7m) 102.1%
Slide 32: Australasia
Australasia At constant rates of exchange Measure 2010 2009 YoY Occupancy 66.3% 62.4% 3.9pts Ave Rate £51.96 £52.44 (0.9%) RevPAR £34.45 £32.72 5.3% Hotel £49.1m £46.6m 5.4% Revenue Hotel GOP £18.6m £17.6m 5.7% EBIT £12.3m £11.9m 3.4%
Slide 33: Pipeline
Pipeline •4 New contracts signed 4 Middle East •2 Hotels opened •Singapore Studio M •Grand Millennium Al Wahda, Abu Dhabi •Work commenced on Chennai •25 Hotels 7,000 rooms •Opening 2011-2015
Slide 34: Current Trading
Current Trading •First 5 weeks trading RevPAR +4.5% (lfl*) •New York +3.8% •Singapore +4.9% (lfl*) •London +11.3% *lfl. Singapore – Excludes Orchid and Studio M. Group excludes these two plus Copthorne Christchurch City. It also includes Beijing for the 5 weeks in both periods.
Slide 35: Active asset management
Active asset management •Capital improvements underway •Millennium Seoul Hilton •Grand Hyatt Taipei •Capital improvements advanced planning •Millennium UN Plaza •Millennium Mayfair •GM Kuala Lumpur •Other smaller capital projects
Slide 36: Active asset management: Capital expenditure rationale
Active asset management •Capital expenditure rationale
Slide 37: Active asset management
Active asset management •Tanglin Shopping Centre •Malaysia land sale •Orchid redevelopment •Chennai hotel development
Slide 38: Q&A
Q&A MILLENNIUM & COPTHORNE HOTELS plc
Slide 39: Thank You
Thank You MILLENNIUM & COPTHORNE HOTELS plc
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