Mitchells & Butlers plc · LSE:MAB
Mitchells & Butlers — Six Continents — Merger or Acquisition (November 2002)
24 slides from Mitchells & Butlers's merger presentation, Nov 28, 2002
Slide 1: Six Continents Hotels
Six Continents Hotels DAVID BLAND Managing Director EMEA 1
Slide 2: Presentation outline
Presentation outline z Market and company overview z Our brands and properties z Sources of growth 2
Slide 3: Platform for growth
Platform for growth Attractive market opportunity 2000-2010 forecast demand CAGR 4% - 6% Clear success factors International scale Strong brands High quality assets Diversified portfolio 3
Slide 4: International scale
International scale Hotels Americas EMEA Asia Pacific 44 69 22 107 54 30 1,150 334 83 1,242 107 3 48 - - 2,591 564 138 4
Slide 5: Strong brand portfolio
Strong brand portfolio Hotels Rooms Segment 135 44,545 Upper upscale 191 55,935 Upscale 1,567 293,346 Midscale 1,352 109,205 Midscale w/o F & B 48 5,435 Midscale extended stay 5
Slide 6: High quality asset base
High quality asset base Prime SITES Resilient VALUES OPPORTUNITIES for redeployment 6
Slide 7: InterContinental Hong Kong
InterContinental Hong Kong 7
Slide 8: InterContinental Paris, Le Grand
InterContinental Paris, Le Grand 8
Slide 9: InterContinental Boston
InterContinental Boston 9
Slide 10: Crowne Plaza Brussels Europa
Crowne Plaza Brussels Europa 10
Slide 11: Holiday Inn Disneyland, Paris
Holiday Inn Disneyland, Paris 11
Slide 12: Holiday Inn Express
‘SIX CONTINENTS
Slide 13: Staybridge Suites
Staybridge Suites 13
Slide 14: Diversified business model
Diversified business model Ownership Region Owned Americas EMEA Franchised 52% 42% 41% & Leased 46% Managed Asia Pacific 13% 6% Brand Staybridge Suites Other 1% 3% Holiday Inn Express InterContinental 10% 32% Holiday Inn Crowne Plaza 43% 11% * Hotel level operating profit 14
Slide 15: Separation benefits
Separation benefits z Greater strategic flexibility z Efficient balance sheet z Transparent market valuation z Consolidation opportunities z Sharper management focus 15
Slide 16: Strategy
Strategy z Make strong brands stronger z Leverage economies of scale z Create an unparalleled network z Optimise capital deployment 16
Slide 17: Strategy: Sources of profit growth
Strategy Sources of profit growth z Make strong brands stronger Operational out-performance z Leverage economies of scale Six Continents system strength z Create an unparalleled network Increased distribution z Optimise capital deployment Invest and recycle 17
Slide 18: Operational outperformance
Operational outperformance z $20m investment in InterContinental and ICONs z Crowne Plaza KEYs z Holiday Inn Hallmarks 18
Slide 19: Six Continents system strength
Six Continents system strength z Creating demand z Managing demand World-class brands Worldwide reservations Global sales Industry-leading web- sites on-line Marketing programmes GDS management Proprietary Revenue Management systems z Retaining demand Priority Club Rewards Six Cont
Slide 20: Distribution growth opportunities
Distribution growth opportunities z Franchise and management contracts z New Holiday Inn prototypes z New organically grown brands z Asset acquisitions on strict financial criteria 20
Slide 21: Capital investment
Capital investment Key hotels re-open Le Grand Major refurbishments InterContinental, Holiday Inn UK New openings CP Birmingham, CP Brussels airport Holiday Inn Disneyland Paris InterContinentals in Boston, Atlanta and Warsaw 21
Slide 22: Summary
Summary SIX CONTINENTS HOTELS New independence Management focus on Strong competitive position driving operating Straightforward strategy performance and returns Strong growth prospects 22
Slide 23: Six Continents
SIX CONTINENTS
Slide 24: Important notice and forward-looking statements
Salomon Brothers International Limited, trading as Schroder Salomon Smith Barney (“Schroder Salomon Smith Barney”)is acting for Six Continents and no one else in connection with the proposed separation and return of capital and will not be responsible to any other person for providing the protection
Six Continents — Merger or Acquisition (November 2002) on 6ix