Slide 1: Whitbread FY20 Results May 2020
Som thyme fy mek BAR GRILL YOO? , ay (se) im WHITBREAD rv iay 2020
Slide 2: Contents
Contents Performance update and . as COVID-19 response Alison Brittain p3 Financial review Nicholas Cadbury p25 Appendices p38 FY20 RESULTS | MAY 2020 WHITBREAD 2
Slide 3: Overview
Overview ) React and Protect ) Drive long-term value Resilient financial performance, in line with expectations Improved H2 trading driven by commercial initiatives Strong balance sheet COVID-19 Decisive response to COVID-19; protecting colleagues, guests and the business Minimising cash outflows an
Slide 4: React and Protect, Restore, Drive long-term value
1 FY20 2 React and Protect 3 Restore 4 Drive long-term value
Slide 5: 2. React and Protect
2. React and Protect Rapid and decisive action WHITBREAD 5 FY20 RESULTS | MAY 2020
Slide 6: FY20 React and Protect Restore
1 FY20 2 React and Protect 3 Restore 4 Drive long-term value • • • • • • • • • •
Slide 7: FY20 React and Protect Restore
1 FY20 2 React and Protect 3 Restore 4 Drive long-term value • • • • • • • • • •
Slide 8: 3. Restore
3. Restore Position the business for a successful recovery WHITBREAD 8 FY20 RESULTS | MAY 2020
Slide 9: FY20 React and Protect Restore
1 FY20 2 React and Protect 3 Restore 4 Drive long-term value • • • • • • ✓ • ✓ • ✓ • ✓ • ✓
Slide 10: FY20 React and Protect Restore
1 FY20 2 React and Protect 3 Restore 4 Drive long-term value • • • • • • • •
Slide 11: 4. Drive long-term value
4. Drive long-term value Compelling growth opportunities WHITBREAD ii FY20 RESULTS | MAY 2020
Slide 12: FY20 React and Protect Restore
1 FY20 2 React and Protect 3 Restore 4 Drive long-term value ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Slide 13: FY20 React and Protect Restore
1 FY20 2 React and Protect 3 Restore 4 Drive long-term value • • • • • • • • • • •
Slide 14: Budget branded, Other branded, Independents
1 FY20 2 React and Protect 3 Restore 4 Drive long-term value Budget branded • Other branded • • Independents • • Budget branded Other branded • • • Independents • •
Slide 15: FY20 React and Protect Restore
1 FY20 2 React and Protect 3 Restore 4 Drive long-term value • • • • •
Slide 16: FY20 React and Protect Restore
1 FY20 2 React and Protect 3 Restore 4 Drive long-term value • • • • • • • • • •
Slide 17: FY20 React and Protect Restore
1 FY20 2 React and Protect 3 Restore 4 Drive long-term value • • • • • • • • • • • • • •
Slide 18: Open Pipeline
1 FY20 2 React and Protect 3 Restore 4 Drive long-term value Open Pipeline
Slide 19: FY20 React and Protect Restore
1 FY20 2 React and Protect 3 Restore 4 Drive long-term value
Slide 20: Operational advantage
1 FY20 2 React and Protect 3 Restore 4 Drive long-term value • • advantage strength Brand Scale • • • • • Operational Integrated • control trading • • • • • • efficiency flexibility Everyday Property • • • •
Slide 21: FY20 React and Protect Restore
1 FY20 2 React and Protect 3 Restore 4 Drive long-term value
Slide 22: FY20 React and Protect Restore
1 FY20 2 React and Protect 3 Restore 4 Drive long-term value • • • • • •
Slide 23: FY20 React and Protect Restore
1 FY20 2 React and Protect 3 Restore 4 Drive long-term value ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Slide 24: FY20 React and Protect Restore
1 FY20 2 React and Protect 3 Restore 4 Drive long-term value ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Slide 25: Financial Review | Nicholas Cadbury - CFO
FINANCIAL REVIEW | Nicholas Cadbury - CFO je ; WA 402. ere Ly V4 1 rit Savas Vebie nite Premier Inn |} WHITBREAD a a2 ea @ Fea a at | ¥ . oP ws ge ry ve \ ny ry ‘ i : ie 5 8 i . 4 a TAVATANANS FY20 RESULTS | MAY 2020
Slide 26: Financial highlights | Resilient financial performance
Financial highlights | Resilient financial performance FY20 Fy19* 7) Statutory revenue** £2,072m £2,049m 1.1% Adjusted revenue £2,062m £2,047m 0.7% Adjusted EBITDAR £753m £794m (5.2)% Adjusted EBITDA woolres 16) £567m £626m (9.4)% Adjusted PBT Oe £389m £432m (9.)% Adjusted PBT £358m £390m (8.2)% Adj
Slide 27: Operating performance | Revenue ahead in tough market conditions
Operating performance | Revenue ahead in tough market conditions FY20 FY19* 4 Statutory revenue** £2,072m £2,049m 1.1% Adjusted revenue £2,062m £2,047m 0.7% - Transitional service agreement £9m £2m nm. - UK! £2,050m £2,042m 0.4% - Germany £12m £5m 140.8% Adjusted EBITDA (Pre-/Frs 16) £567m £626m (9.
Slide 28: FY20 trading | Challenging market; PI improved H2 performance
FY20 trading | Challenging market; Pl improved H2 performance UK Midscale & Economy accommodation sales growth Strong London market, tough regional market Accommodation PI vs UK Midscale & Economy variance Q4 total accommodation sales market outperformance Business 3% sales growth confidence index 2
Slide 29: Efficiency programme partially offsets NLW, inflation and property costs increases
Efficiency programme partially offsets NLW, inflation and property costs increases Efficiency programme partially offsets NLW, inflation and property costs increases • • •
Slide 30: Cash | Business model delivers consistently strong cashflow
Cash | Business model delivers consistently strong cashflow FY20 strong cash conversion of 91%! Enabling investment to drive growth EBIT £403m FY20 amortisation 65m ; mer UK organic amortisation investment £167m Working capital & other £a7)m Maintenance Germany organic CapEx £0154)m | investment £73
Slide 31: Balance sheet | Strong position as we entered FY21
Balance sheet | Strong position as we entered FY21 Substantial liquidity with diverse & flexible options Lease adjusted leverage consistent with investment grade metrics As at 27 Feb 2020 (at hedged rates) Total Utilised@ Maturity facilities Amount US private placement notes (£75)m (£75)m 2020 Funds
Slide 32: FY21 | Updated guidance to reflect COVID-19
FY21| Updated guidance to reflect COVID-19 Scenario * UK hotels and restaurants are closed, or operating at low occupancy, until September 2020 assumptions * German hotels (16) opened 11 May - very low occupancy on reopening * Slow hotel recovery as restrictions are lifted * 1% fallin RevPAR and res
Slide 33: Financial objectives | Rights issue to maintain balance sheet strength
Financial objectives | Rights issue to maintain balance sheet strength Financial Flexibility Value Creation Leverage Flexibility to pursue our strategy of organic investment and outperformance Maintain optionality on opportunities that arise, as well as our growing mix of leasehold properties Maximu
Slide 34: Rights issue | Expected timetable
Rights issue | Expected timetable Rights issue summary Expected timetable * c. £1 billion of gross proceeds 21-May-20 * Announcement of FY20 results and . . . . rights issue terms * Fully pre-emptive rights issue, allowing all shareholders to participate * Publication of the prospectus * Rights are
Slide 35: Financial flexibility | Enabling the investment to deliver our strategy
Financial flexibility | Enabling the investment to deliver our strategy 700 £410m 600 500 400 300 200 100 0 FY18 Capital expenditure £462m FY19 £588m Return to normal levels FY22+ FY22+ capital expenditure UK: existing 13k committed pipeline, targeting higher returning locations and larger scale uni
Slide 36: Profit recovery | at attractive ROCE going forward
Profit recovery | at attractive ROCE going forward Capitalise on structural opportunities and competitive advantage Customer behaviour Competitive opportunities Premier Inn initiatives v More domestic tourism/staycations v Accelerated independent decline Y¥ Operating model is a competitive x Weaker
Slide 37: Summary | Proven strategy is highly relevant post COVID-19
Summary | Proven strategy is highly relevant post COVID-19 React and Protect Rapid and decisive action 1 Grow and innovate in core UK markets 2 Focus on our strengths to grow in Germany Build capability to 3 support long-term growth Restore Position the business for a successful recovery V Ownership
Slide 38: Appendices
APPENDICES | Definitions p39 ll Supporting IFRS 16 information p40 Ill Supplementary information p42 IV. Rights Issue p43 V Cautionary statement p44 Whitbread ADR programme - WTDBY Whitbread has established a sponsored Level | American Depositary Receipt (ADR) programme for which Deutsche Bank perfo
Slide 39: Appendix I | Definitions
Appendix | | Definitions Accommodation sales Adjusted basic EPS Adjusted net cash / (debt) Adjusted profit before tax Adjusted revenue Average room rate (ARR) Committed pipeline Direct bookings / distribution Discretionary free cash flow EBITDA EBITDAR F&B sales Funds from operations (FFO) Lease-adj
Slide 40: Appendix II | Supporting IFRS information
Appendix II | Supporting IFRS 16 information Significant changes to statutory financial reporting * New accounting standard for financial reporting of lease agreements now adopted * Whitbread’s leases fall into two main areas - short, low-value leases (mainly cars) - long, high value leases (c.350 h
Slide 41: Appendix I | Supporting IFRS information
Appendix I | Supporting IFRS 16 information FY20 IFRS 16 impact on Balance Sheet FY20 KPI impact Pre- IFRS Add lease Add right-of- Post- Pre-IFRS 16 Post-IFRS 16 Variance 16 liabilities* use-asset* IFRS 16 EBITDAR £753m £753m - Total assets £5,564m - £2,262m £7,826m Adjusted operating profit £403m £
Slide 42: Appendix III | Supplementary information
Appendix Il. | Supplementary information Further information is available in a supporting supplementary information pack (in Microsoft Excel format) from www.whitbread.co.uk/investors/results-reports-and-presentations. This information includes: Hotel estate Sales, profit & return on capital IFRS 16
Slide 43: Rights issue pricing: 2,843.00p 2,395.33p 895.33p 1,500.00p
2,843.00p 2,395.33p 895.33p 1,500.00p
Slide 44: Appendix V | Cautionary statement
Appendix V | Cautionary statement NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, AUSTRALIA, NEW ZEALAND, UNITED ARAB EMIRATES, JAPAN, SINGAPORE, SOUTH AFRICA, AND ANY OTHER JURISDICTION WHERE THE EXTENSION OR AVAILABILITY OF THE RIGHTS ISSUE (AND ANY O
Slide 45: Appendix IV | Cautionary statement
Appendix IV | Cautionary statement The securities referred to in this Presentation relates have not been registered, and will not be registered, under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), and may not be offered, sold, pledged, taken up, exercised, resold, renounce
Slide 46: Contact
tS CONTACT Whitbread PLC | Whitbread Court, Houghton Hall Business Park, Porz Avenue, Dunstable, LUS 5XE ® www.whitbread.co.uk | BJ investorrelations@whitbread.com WHITBREAD 46 FY20 RESULTS | MAY 2020