Millennium & Copthorne Hotels New Zealand Limited · NZX:MCK
Millennium & Copthorne Hotels New Zealand — Millennium & Copthorne Hotels — H1 2012 Earnings Presentation
28 slides from Millennium & Copthorne Hotels New Zealand's earnings presentation, August 2012
Slide 1: Interim Results Presentation
Interim Results Presentation August 2012 August, 1
Slide 2: Introduction
Introduction Kwek Leng Beng - Chairman 2
Slide 3: Introduction: RevPAR up 5.2%
Introduction RevPAR up 5.2% 5 2% (in constant currency) Like for like RevPAR up 4.6% Headline PBT £78.3m (2011: £59.8m) Strong cash flow Good progress on asset management initiatives Strengthening of management team Note: Like for like excludes Stuttgart, Orchid and Christchurch 3
Slide 4: Introduction: RevPAR up 5.2%
Introduction RevPAR up 5.2% 5 2% (in constant currency) Like for like RevPAR up 4.6% Headline PBT £78.3m (2011: £59.8m) Strong cash flow Good progress on asset management initiatives Strengthening of management team Note: Like for like excludes Stuttgart, Orchid and Christchurch 4
Slide 5: Introduction: RevPAR up 5.2%
Introduction RevPAR up 5.2% 5 2% (in constant currency) Like for like RevPAR up 4.6% Headline PBT £78.3m (2011: £59.8m) Strong cash flow Good progress on asset management initiatives Strengthening of management team Note: Like for like excludes Stuttgart, Orchid and Christchurch 5
Slide 6: Financial Review
Financial Review Beng Lan Low – Senior Vice President Finance 6
Slide 7: 2012 Financial Highlights
2012 Financial Highlights At reported rates of exchange In Reported Currency (£) H1 H1 YoY 2012 2011 Change Revenue 373 9m 373.9m 370 3m 370.3m 1 0% 1.0% Headline Operating Profit 81.2m 63.9m 27.1% H dli PBT Headline 78 3 78.3m 59 8 59.8m 30 9% 30.9% Headline PAT 62.6m 43.2m 44.9% Basic Earnings Per
Slide 8: 2012 Financial Highlights: Headline Operating Profit
2012 Financial Highlights Headline Operating Profit H1 2011 Headline Operating Profit £63 9m £63.9m Exchange rate movement £0.6m Like for f like hotel trading £ £4.6m Property trading £1.5m Share of profit of joint ventures and associates £11.3m Refurbishments/closures/openings £0.6m Reduction in Gl
Slide 9: 2012 Financial Highlights
2012 Financial Highlights £m H1 H1 2012 2011 Headline Operating Profit 81 2 81.2 63 9 63.9 Other operating income and expense 0.1 19.3 Impairment (Bangkok) (0.2) (0.2) Profit on sale and lease back Studio M - 17.4 Profit on sale of CLDHT units 0.3 0.2 Sale of Philippines management co - 1.9 Share of
Slide 10: 2012 Financial Highlights: Tax
2012 Financial Highlights Tax H1 2012 £m PBT 79.0 Less share of profit of JV & associates (22.1) (a) 56.9 Add back impairment expenses 0.2 Deduct non-operating income (0.3) (b) 56.8 Tax expense p for the yyear ((c)) 15.0 Add back opening deferred tax adjustment (change in tax rates) 0.7 Add back pri
Slide 11: Highlights of Cash Flows
2012 Financial Highlights Highlights of Cash Flows £m H1 H1 2012 2011 Cash generated from operating activities 84.0 40.3 Acquisition of property, plant and equipment, lease premium prepayment & investment properties (18.0) (9.9) Di id d ffrom jjoint Dividends i t venture t and d associate i t 13 8 1
Slide 12: Highlights of Cash Flows - continued
2012 Financial Highlights Highlights of Cash Flows - continued £m H1 H1 2012 2011 Cash generated from operating activities - continued Dividends paid to non-controlling interests (2.7) (2.5) Proceeds from issue of share capital 0.3 0.8 Other movements (primarily translation difference) 0.1 9.0 Decre
Slide 13: Strong Balance Sheet
2012 Financial Highlights Strong Balance Sheet J Jun D Dec 2012 2011 Gearing 0 5% 0.5% 4 8% 4.8% Net debt £10.6m £100.2m A Average remaining i i d duration ti off ffacilities iliti 18 months th 22 months th Average interest rate of borrowings 1.97% 2.04% Interest cover 20.6x 25.5x Undrawn committed
Slide 14: Earnings Per Share
2012 Financial Highlights Earnings Per Share 25.0p 19.8p 20.0p p 17.9p 18.3p 15.0p 13.0p 10.0p 5 0p 5.0p 0.0p Headline Basic H1 2011 H1 2012 14
Slide 15: Dividend
2012 Financial Highlights Dividend H1 H1 2012 2011 Interim 2.08p 2.08p 15
Slide 16: Performance by Region
Performance by Region Wong Hong Ren – Chief Executive Officer 16
Slide 17: Singapore
Singapore At constant rates of exchange H1 H1 YoY 2012 2011 Occupancy 88 3% 88.3% 85 4% 85.4% 2 9pts 2.9pts Ave Rate £116.53 £107.93 8.0% R PAR RevPAR £102 92 £102.92 £92 22 £92.22 11 6% 11.6% Hotel revenue £75.3m £75.0m 0.4% Hotel OP £17.2m £19.7m (12.7%) 17
Slide 18: Rest of Asia
Rest of Asia At constant rates of exchange H1 H1 YoY 2012 2011 Occupancy 72 5% 72.5% 68 2% 68.2% 4 3pts 4.3pts Ave Rate £89.02 £79.03 12.6% R PAR RevPAR £64 56 £64.56 £53 90 £53.90 19 8% 19.8% Hotel revenue £83.8m £75.8m 10.6% Hotel OP £22.8m £16.5m 38.2% 18
Slide 19: London
London At constant rates of exchange H1 H1 YoY 201 2011 2 Occupancy 77.8% 78.8% (1.0pts) Ave Rate £123.04 £116 48 £116.48 5 6% 5.6% RevPAR £95.76 £91.79 4.3% Hotel revenue £49 9m £49.9m £47 4m £47.4m 5 3% 5.3% Hotel OP £19.9m £18.9m 5.3% 19
Slide 20: Rest of Europe
Rest of Europe At constant rates of exchange H1 H1 YoY 201 2011 2 Occupancy 69.4% 68.0% 1.4pts Ave Rate £67.38 £71 10 £71.10 (5 2%) (5.2%) RevPAR £46.79 £48.37 (3.3%) Hotel revenue £33 7m £33.7m £44 4m £44.4m (24 1%) (24.1%) Hotel OP £2.3m £2.1m 9.5% 20
Slide 21: New York
New York At constant rates of exchange H1 H1 YoY 2012 2011 Occupancy 79 1% 79.1% 83 4% 83.4% (4 3pts) (4.3pts) Ave Rate £146.31 £144.17 1.5% R PAR RevPAR £115 66 £115.66 £120 26 £120.26 (3 8%) (3.8%) Hotel revenue £45.3m £46.6m (2.8%) Hotel OP (£0.3m) £2.2m (113.6%) 21
Slide 22: Regional US
Regional US At constant rates of exchange H1 H1 YoY 201 2011 2 Occupancy 56.2% 56.3% (0.1pts) Ave Rate £66.48 £64 63 £64.63 2 9% 2.9% RevPAR £37.39 £36.42 2.7% Hotel revenue £55 1m £55.1m £55 7m £55.7m (1 1%) (1.1%) Hotel OP (£0.2m) (£1.1m) 81.8% 22
Slide 23: Australasia
Australasia At constant rates of exchange H1 H1 YoY 201 2011 2 Occupancy 63.3% 64.5% (1.2pts) Ave Rate £55.03 £57 13 £57.13 (3 7%) (3.7%) RevPAR £34.84 £36.84 (5.4%) Hotel revenue £22 6m £22.6m £24 3m £24.3m (7 0%) (7.0%) Hotel OP £6.7m £3.8m 76.3% 23
Slide 24: Current Trading
Current Trading • First 24 days of trading like like-for-like for like RevPAR -4.2% 4 2% • London -12.5% • New York -9.0% (excluding UN Plaza -0.8%) • Singapore -1.1% 24
Slide 25: Active Asset Management
Active Asset Management Capital improvements mostly complete • Millennium Seoul Hilton Capital improvements underway • Millennium UN Plaza Hotel New York ((West Wing) g) Capital improvements advanced planning • Grand Hyatt Taipei • Millennium Hotel London Mayfair • Millennium Hotel Minneapolis 25
Slide 26: Executive Management
Executive Management Strengthening the team Fabrizio Gaggio – Senior Vice President for Global Asset Management Bupesh Yadav – Chief Business and Administration Officer 26
Slide 27: Millennium & Copthorne Hotels plc
ll MILLENNIUM & COPTHORNE HOTELS plc 27
Slide 28: Thank You
Thank You 28
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