Pphe Hotel Group Limited · LSE:PPH
Pphe Hotel — H1 2016 Earnings Presentation
38 slides from Pphe Hotel's earnings presentation, August 2016
Slide 1: 2016 Interim Results and Company Profile
Pepe, 2016<INTERIM “RESULTS AND COMPANY PROFILE
Slide 2: Important Notice
I M P O R TA N T N O T I C E By attending the meeting where this presentation This presentation is being distributed on the basis This presentation should not be considered as the is made, or by reading this document, you agree that each person in the UK to whom it is issued is giving of investment
Slide 3: Highlights
HIGHLIGHTS • Overall performance in line with board expectations, notwithstanding a softer performance in the United Kingdom. • Period of significant corporate activity, further reshaping the business: – Soft opening of Park Plaza Nuremberg, full opening expected in Q3 of 2016, – Development and lau
Slide 4: cFANCAS
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Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS Reported Like for like1 H1 2016 H1 2015 % CHANGE2 H1 2016 H1 2015 % CHANGE2 Total revenue £111.6m £102.3m +9.2% £111.5m £111.0m +0.5% EBITDA £32.5m £35.1m (7.4)% £32.6m £36.6m (10.8)% EBITDA margin 29.1% 34.3% (520) bps 29.3% 33.0% (370) bps Normalised PBT3 £2.8m £10.9m (74.0)%
Slide 6: Operating Key Performance Indicators
O P E R AT I N G K E Y P E R F O R M A N C E I N D I C AT O R S O C C U PA N C Y A V E R A G E R O O M R AT E R E V PA R % £ £ 82.9 84.3 86.9 86.6 104.9 109.1 108.8 91.2 106.6 83.7 86.1 106.1 82.1 80.7 73.0 73.2 73.0 103.5 103.5 77.4 75.0 70.8 70.5 97.3 2012 2013 2014 2015 2016 2015 Lfl 2016 Lfl 201
Slide 7: Financial Key Performance Indicators
FINANCIAL KEY P E R F O R M A N C E I N D I C AT O R S T O TA L R E V E N U E EBITDA £ MILLION £ MILLION 218.7 217.0 80.1 207.8 76.1 196.2 70.2 69.4 111.6 111.0 111.5 102.3 36.6 35.1 32.5 32.6 2012 2013 2014 2015 2016 2015 Lfl 2016 Lfl 2012 2013 2014 2015 2016 2015 Lfl 2016 Lfl FY Half year Like-for
Slide 8: Financial Key Performance Indicators
FINANCIAL KEY P E R F O R M A N C E I N D I C AT O R S NORMALISED PROFIT NORMALISED EARNINGS DIVIDEND PER SHARE B E F O R E TA X £ M I L L I O N 1 PER SHARE £ £2 1.10 29.8 0.72 26.4 0.63 19.5 0.48 18.6 0.46 10.9 0.26 0.15 0.14 0.12 0.10 0.07 2.8 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012
Slide 9: United Kingdom
UNITED KINGDOM EBITDA TOTAL REVENUE REVPAR ARR OCCUPANCY £21.0m £66.4m £109.0 £133.5 81.7% (13.8%) (3.1%) (4.7%) +1.4% (520) bps • Our hotels outperformed their competitive sets in occupancy, leaving further opportunity to continue to grow our average room rate. • Against a backdrop of increased ter
Slide 10: The Netherlands
THE NETHERLANDS EBITDA TOTAL REVENUE REVPAR ARR OCCUPANCY £7.4m £23.2m £83.5 £104.0 80.3% +16.3% +12.7% +13.2% +12.3% +60 bps • The Dutch market continued to improve year-on-year and our hotels benefited from further demand increases. • In local currency, RevPAR for our hotels increased by 4.8% to €
Slide 11: Germany and Hungary
GERMANY AND HUNGARY EBITDAR TOTAL REVENUE REVPAR ARR OCCUPANCY £2.7m £10.6m £41.2 £61.1 67.4% +(1.6)% +2.4% (0.6)% +14.5% (1,020) bps • With our recent and upcoming renovation programme in Berlin, we have implemented a rate focused strategy in line with the improved product. Due to this transformati
Slide 12: Croatia
C R O AT I A EBITDA TOTAL REVENUE REVPAR ARR OCCUPANCY £1.5m £9.6m £24.1 £55.2 43.6% 0% +10.3% 11.1% +16.7% (230) bps • The operations of our portfolio in Croatia are of a highly seasonal nature and its main trading months are June to September. • RevPAR improved by 1.6% to HRK 231.8 as a result of
Slide 13: Management and Holdings
MANAGEMENT AND HOLDINGS EBITDA £3.3m (31.3)% • We are owner/operator of a large part of our portfolio and, as a result, all hotel management revenue related to those hotels is eliminated upon consolidation as intra-Group revenue. • Prior to consolidation and elimination of intra-Group revenue, total
Slide 14: Outlook
OUTLOOK • Second half usually the strongest trading period. • Following Croatian acquisition, expect to see a greater weighting towards the second half due to summer seasonal nature of Croatian operations, consolidated into the accounts for the first time. • Focus on delivery of two new hotels and c
Slide 15: Additional 2016 Results Financial Information
Pater ~ ADDITIONAL 2016 RESULTS FINANCI
Slide 16: H1 2016 Income Statement
H 1 2 0 1 6 I N C O M E S TAT E M E N T H1 2016 H1 2015 CHANGE £’000 £’0001 % Total Revenues 111,641 102,262 +9.2 Operating expenses (74,539) (63,098) +18.1 EBITDAR 37,102 39,164 (5.3) Rental expenses (4,604) (4,064) 0 EBITDA 32,498 35,100 (7.4) Depreciation and amortisation (11,798) (9,442) +25.0 E
Slide 17: H1 2016 Group Revenue
H1 2016 GROUP REVENUE £’000 £111,641 Fees non consolidated items £1,589 Minor Other operating £490 £2,620 Food Room & Beverage revenue revenue £76,850 £30,092 17
Slide 18: H1 2016 Revenue Contribution Segments
H1 2016 REVENUE CONTRIBUTION SEGMENTS £M 217.0 218.7 196.2 207.7 176.5 119.7 111.6 102.3 71.3 18
Slide 19: H1 2016 EBITDA Contribution Segments
H1 2016 EBITDA CONTRIBUTION SEGMENTS £M 80.2 76.0 69.3 70.2 56.6 35.1 32.2 32.5 14.5 19
Slide 20: Normalised Profit Before Tax
N O R M A L I S E D P R O F I T B E F O R E TA X Reconciliation reported to normalised profit Half Year ended Half Year ended 30 June 2016 30 June 2015 £m £m Reported profit before tax 12.1 10.6 Fair value movements on derivatives recognised in the profit and loss – (0.2) Negative goodwill and capit
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Slide 22: Introduction
INTRODUCTION We are an international hospitality management company, with a strong asset base and ownership of, and access to, the world-class Park Plaza® and art’otel® brands. Our vision is to realise growth potential and our primary objective is to create and realise shareholder value by striving
Slide 23: Current Portfolio
CURRENT PORTFOLIO H O T E L L O C AT I O N S CONTRACT MIX Countries Rooms in operation Rooms in pipeline Management and New hotel projects 6 8,374 1,402 franchise agreements United Kingdom London (6 hotels and 4 projects), Cardiff, Leeds, Nottingham 2,791 1,402 The Netherlands Amsterdam (4 hotels),
Slide 24: Development Pipeline
DEVELOPMENT PIPELINE PROJECT LOCATION OPERATING NO OF STATUS STRUCTURE ROOMS Park Plaza Riverbank London London, Wholly owned and 184 Expected to extension and reconfiguration United Kingdom managed be completed 2016 Park Plaza London Park Royal London, Wholly owned and 212 Expected to United Kingdo
Slide 25: Selection of Upscale, Full-Service Branded Hotel Rooms Within London's M25
SELECTION OF UPSCALE, FULL-SERVICE BRANDED HOTEL ROOMS WITHIN LONDON’S M25 ( E X C L U D I N G H E AT H R O W ) 1 2,300 rooms in operation in 2015. 2 3,100 rooms projected for 2016. Source: Hotel brand websites and/or Booking.com 25
Slide 26: Key Strengths
KEY STRENGTHS 1 2 3 4 Integrated and Profitable Global Pipeline entrepreneurial approach niche partnership _____________ _____________ _____________ _____________ hotel development, expanding “affordable powerful distribution significant portfolio and design, construction, luxury” with upscale hotel
Slide 27: Strategy
S T R AT E G Y Leveraging partnership Delivering stabilised with Carlson to further annual return on grow revenues shareholder capital Improving overall Maintaining high performance through Realise growth EBITDA margin innovative revenue potential generation and marketing initiatives Driving growth
Slide 28: Our Business Types
OUR BUSINESS TYPES FRANCHISE OPERATING FULL OWNERSHIP AGREEMENTS LEASES ___________________ ___________________ ___________________ We know what to look for when The franchise option is ideal for Investors may favour operating identifying assets with development partners who enjoy running their leas
Slide 29: World-Class Brands
WORLD-CLASS BRANDS Individual design, city centre locations and A contemporary collection of hotels that fuse Arenaturist is one of Croatia’s best known excellent meeting facilities are key features of exceptional architectural style with art- hospitality groups and consists of seven hotels, the ups
Slide 30: Leveraging Carlson Relationship
LEVERAGING C A R L S O N R E L AT I O N S H I P PPHE Hotel Group has a territorial licence agreement with Carlson giving it exclusive rights to use the Park Plaza brand in 56 countries in the EMEA region and access to: CENTRAL CARLSON WORLDWIDE RESERVATION AND Headquarters in Minneapolis, MN DISTRIB
Slide 31: Operating Key Performance Indicators 2011-2015
O P E R AT I N G K E Y P E R F O R M A N C E I N D I C AT O R S 2 0 1 1 - 2 0 1 5 EMPLOYEE S AT I S F A C T I O N GUEST SERVICE ENGAGEMENT S AT I S F A C T I O N PERFORMANCE (SCALE 1-100%) (SCALE 1-10) (SCALE 1-10) 8.36 84.2 83.5 8.31 83.3 8.30 8.30 82.9 8.23 82.1 2011 2012 2013 2014 2015 2011 2012
Slide 32: Board of Directors
BOARD OF DIRECTORS ELI PAPOUCHADO BORIS IVESHA CHEN MORAVSKY NON-EXECUTIVE CHAIRMAN PRESIDENT & CHIEF EXECUTIVE OFFICER DEPUTY CHIEF EXECUTIVE OFFICER & CHIEF FINANCIAL OFFICER KEVIN MCAULIFFE DAWN MORGAN NIGEL JONES NON-EXECUTIVE DIRECTOR & NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR SENIOR INDEP
Slide 33: Largest Shareholders August 2016
LARGEST SHAREHOLDERS 25 AUGUST 2016 Number of issued shares 44,059,512 Held in treasury by 1,862,000 PPHE Hotel Group Number of issued shares 42,197,512 (excluding treasury) Largest shareholders Number of Percentage of issued share shares capital (excluding treasury) Red Sea Group 18,552,714 43.97%
Slide 34: List of Hotels
LIST OF HOTELS CURRENT PORTFOLIO HOTELS INCLUDED IN THE GROUP LOCATION OWNERSHIP NO OF SINCE INTEREST ROOMS Park Plaza Riverbank London London 100% 395 2005 Plaza on the River London London 100% 66 2005 Park Plaza Sherlock Holmes London London 100% 119 2001 Park Plaza Victoria London London 100% 299
Slide 35: List of Hotels
LIST OF HOTELS CURRENT PORTFOLIO HOTELS INCLUDED IN THE GROUP LOCATION OWNERSHIP NO OF SINCE INTEREST ROOMS Park Plaza Amsterdam Airport Amsterdam 100% 342 2010 Park Plaza Victoria Amsterdam Amsterdam 100% 306 1993 Park Plaza Vondelpark, Amsterdam Amsterdam 100% 138 2006 art’otel amsterdam Amsterdam
Slide 36: List of Hotels
LIST OF HOTELS CURRENT PORTFOLIO HOTELS UNDER OPERATING LEASES LOCATION OWNERSHIP NO OF SINCE INTEREST ROOMS art’otel berlin kudamm Berlin – 152 2001 Park Plaza Wallstreet Berlin Mitte Berlin – 167 2006 art’otel budapest Budapest – 165 2000 art’otel cologne Cologne – 218 2010 art’otel dresden Dresde
Slide 37: List of Hotels
LIST OF HOTELS CURRENT PORTFOLIO HOTELS UNDER MANAGEMENT AND FRANCHISE AGREEMENTS LOCATION OWNERSHIP NO OF SINCE INTEREST ROOMS Park Plaza County Hall London London – 399 2008 Park Plaza Cardiff Cardiff – 129 2005 Park Plaza Orchid Tel Aviv Tel Aviv – 203 2007 Park Plaza Trier Trier – 150 2003 Sub T
Slide 38: Correspondence
CORRESPONDENCE CHEN MORAVSKY Deputy Chief Executive Officer & Chief Financial Officer 12 David Mews London, W1U 6EG United Kingdom T: +44 20 7034 4808 T: +31 20 717 8603 M: +44 77 7038 1064 M: +31 6 5113 6255 E: [email protected] pphe.com 38