Intercontinental Hotels Group Plc · LSE:IHG
Intercontinental Hotels — H1 2003 Earnings Presentation
25 slides from Intercontinental Hotels's earnings presentation, August 2003
Slide 1: Richard Solomons, Finance Director
Richard Solomons Finance Director 2
Slide 2: Pro forma Group Results
Results 6 months to 30 June 2003 Pro forma Group Results (£) Turnover Down 3.4% EBITDA Down 14.5% Operating Profit Down 27.4% Profit Before Tax Down 30.8% Earnings per share Down 32.1% 3
Slide 3: Operating Profit: Hotels and Soft Drinks
Results 6 months to 30 June 2003 Operating Profit £m Hotels 86 Down 31.7% Soft Drinks 39 Up 14.7% 4
Slide 4: Owned & Leased Estate RevPAR
Owned & Leased Estate RevPAR 6 months to 30 June 2003 15.0% 10.0% 5.0% 0.0% Jan Feb Mar Apr May Jun RevPAR% Growth -5.0% -10.0% -15.0% -20.0% -25.0% -30.0% -35.0% -40.0% Americas EMEA Asia Pacific 5
Slide 5: Operating Profit Performance
Operating Profit Performance 6 months to 30 June 2003 z Hotels revenue £62m lower z Key factors affecting profit flow-through: Occupancy Depreciation Insurance z Hotels operating profit £40m lower 6
Slide 6: Operating Profit 3 months to 30 June 2003
Operating Profit 3 months to 30 June 2003 $m 3 mths to 3 mths to % 30 Jun 03 30 Jun 02 Americas - Owned & Leased 13 12 8.3 - Managed & Upscale Franchised 12 11 9.1 - Midscale Franchised 57 57 - Total Americas 82 80 2.5 EMEA - Owned & Leased 22 39 (43.6) - Managed & Franchised 8 9 (11.1) Total EMEA 3
Slide 7: Operating Profit 6 months to 30 June 2003
Operating Profit 6 months to 30 June 2003 $m 6 mths to 6 mths to % 30 Jun 03 30 Jun 02 Americas - Owned & Leased 13 13 - - Managed & Upscale Franchised 19 20 (5.0) - Midscale Franchised 102 100 2.0 Total Americas 134 133 0.8 EMEA - Owned & Leased 31 59 (47.5) - Managed & Franchised 18 20 (10.0) Tota
Slide 8: Americas InterContinental Owned & Leased RevPAR
Americas InterContinental Owned & Leased RevPAR Performance 10.0% InterContinental O&L Upper Upscale Segment RevPar % Growth 0.0% Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 (10.4%) Sourc e: IHG & Smith Travel data 9
Slide 9: Americas Owned & Leased
Americas Owned & Leased 3 mths to 3 mths to 6 mths to RevPAR Movement 31 Mar 03 30 Jun 03 30 Jun 03 InterContinental 1.8% 2.9% 2.2% 10 Operating profit flat at $13m
Slide 10: Americas Managed & Upscale Franchise
Americas Managed & Upscale Franchise 3 mths to 3 mths to 6 mths to RevPAR Movement 31 Mar 03 30 Jun 03 30 Jun 03 InterContinental Managed (24.1%) (11.8%) (18.0%) Crowne Plaza Managed (3.0%) (14.5%) (9.4%) Crowne Plaza Franchised (1.3%) (5.2%) (3.5%) 11 Operating profit down $1m to $19m
Slide 11: Americas Express Franchise RevPAR
Americas - Express Franchise RevPAR Performance 10.0% RevPAR % Growth Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 0.0% (10.0%) Express Brands Midscale without F& B Segment Sourc e: IHG & Smith Travel data 12
Slide 12: Americas Holiday Inn Franchise RevPAR
Americas - Holiday Inn Franchise RevPAR Performance 10.0% RevPAR % Growth Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 0.0% (10.0%) Holiday Inn Brands Midscale with F&B Segment Sourc e: IHG & Smith Travel data 13
Slide 13: Americas Midscale Franchise
Americas Midscale Franchise 3 mths to 3 mths to 6 mths to RevPAR Movement 31 Mar 03 30 Jun 03 30 Jun 03 Holiday Inn (2.0%) (4.9%) (3.7%) Express (0.6%) (0.5%) (0.6%) 6 months to 30 Jun 03 Holiday Inn Express Increase in royalty rate 0.05% pts - Change in number of (1.7%) 8.0% rooms available 14 Oper
Slide 14: EMEA Operating Profit
EMEA Operating Profit 6 mths to 6 mths to 30 Jun 03 30 Jun 02 % US Dollar $m $m Total Operating Profit 49 79 (38.0) Sterling £m £m Owned & Leased 19 41 (53.7) Managed & Franchised 11 14 (21.4) Total Operating Profit 30 55 (45.5) 15
Slide 15: EMEA Owned & Leased
EMEA Owned & Leased 3 mths to 3 mths to 6 mths to RevPAR Movement 31 Mar 03 30 Jun 03 30 Jun 03 InterContinental (6.1%) (15.5%) (11.5%) Crowne Plaza (1.6%) (5.4%) (3.7%) Holiday Inn (1.0%) (6.2%) (3.8%) 16 Operating profit down £22m to £19m
Slide 16: EMEA Holiday Inn UK RevPAR
EMEA Holiday Inn UK RevPAR Performance 20.0% Regions Holiday Inn Regions Hotel Benchmark Segment London Holiday Inn London Hotel Benchmark Segment 10.0% RevPAR % Growth 0.0% (10.0%) (20.0%) Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 (30.0%) Sourc e: IHG & Hotel Benchmar k data 17
Slide 17: EMEA Managed & Franchised
EMEA Managed & Franchised 3 mths to 3 mths to 6 mths to RevPAR Movement 31 Mar 03 30 Jun 03 30 Jun 03 InterContinental Managed (4.0%) (17.3%) (10.8%) Holiday Inn Franchised 1.1% (1.9%) (0.5%) Express Franchised (2.2%) (5.8%) (4.3%) 18 Operating profit down £3m to £11m
Slide 18: Asia Pacific Operating Profit
Asia Pacific 3 mths to 3 mths to 6 mths to RevPAR Movement 31 Mar 03 30 Jun 03 30 Jun 03 IC Hong Kong 2.7% (90.2%) (46.0%) Managed 3.4% (31.6%) (14.7%) 19 Operating profit down $15m to $5m
Slide 19: Operating Profit 6 months to 30 June 2003
Operating Profit 6 months to 30 June 2003 $m 6 mths to 6 mths to % 30 Jun 03 30 Jun 02 Americas - Owned & Leased 13 13 - - Managed & Upscale Franchised 19 20 (5.0) - Midscale Franchised 102 100 2.0 Total Americas 134 133 0.8 EMEA - Owned & Leased 31 59 (47.5) - Managed & Franchised 18 20 (10.0) Tota
Slide 20: Britvic Soft Drinks
Britvic Soft Drinks Results for the 28 weeks to 5 July 2003 z Volume up 3.2% z Turnover up 8.1% to £335m z Profit margins increased z Operating Profit up 14.7% 21 Operating profit up £5m to £39m
Slide 21: Group Pro Forma Profit & Loss Account
Group Pro Forma Profit & Loss Account 6 mths to 6 mths to Growth £m 30 Jun 03 30 Jun 02 % EBITDA 213 249 (14.5) Operating profit 114 157 (27.4) Interest (22) (24) 8.3 Profit before tax 92 133 (30.8) Tax (23) (38) 39.5 Minority interests (13) (13) - Retained Profit 56 82 (31.7) Earnings per share (pe
Slide 22: Group Pro Forma Cash Flow
Group Pro Forma Cash Flow 6 mths to £m 30 Jun 03 Operating profit 114 Depreciation / Amortisation 99 Working capital / Other 25 Capital expenditure (net) (140) Operating cash flow 98 23
Slide 23: Group Balance Sheet
Group Balance Sheet £m 30 June 03 31 Dec 02* Tangible assets 4,467 4,383 Intangible assets 157 157 Working capital (42) (22) Long--term liabilities Long (156) (160) Net operating assets 4,426 4,358 Net debt (942) (1,033) Other non- non-operating liabilities (935) (921) Net assets 2,549 2,404 24 * Pr
Slide 24: Dividends
Dividends z Confirmation of dividend intent stated in the Listing Particulars of 13.5p per share for 2003 z Interim dividend of 4.05p for calendar 2003 payable 14 October 2003 z Proposed final dividend of 9.45p payable June 2004 25
Slide 25: Summary
Summary z Trading environment remains uncertain z Our brands continue to perform well z Britvic continues to produce excellent results z Aggressive financial management z Improved net debt position 26
InterContinental Hotels Group — H1 2003 Earnings Presentation on 6ix