InterContinental Hotels Group PLC · LSE:IHG
InterContinental Hotels — FY2004 Earnings Presentation
23 slides from InterContinental Hotels's earnings presentation, February 2005
Slide 1: Supplementary Information
Supplementary Information 31 December 2004 (Revised)
Slide 2: Index
Index z RevPAR - 3 months to 31 December 2004 z Owned/Leased Comparable & Managed z Franchised & Total System z RevPAR - 12 months to 31 December 2004 z Owned/Leased Comparable & Total z Franchised & Total System z Current Trading z RevPAR z Occupancy z Average Daily Rate z System Size z Total Syste
Slide 3: Explanatory Notes
Explanatory Notes • We have disclosed Owned and Leased RevPAR on a comparable basis. • Owned and Leased comparable RevPAR reflects performance this year compared to the same period last year for Owned and Leased hotels that have traded in both years. This excludes new builds, brand changes, properti
Slide 4: RevPAR – 3 Months to 31 December 2004 Owned/Leased Comparable & Managed
RevPAR – 3 Months to 31 December 2004 Owned/Leased Comparable & Managed Owned & Leased Comparable Managed Occ % ADR RevPAR Occ % ADR RevPAR 2004 Pts 2004 Growth 2004 Growth 2004 Pts 2004 Growth 2004 Growth InterContinental 67.6% 0.4% 181.93 4.5% 122.98 5.1% 61.1% 8.7% 122.80 7.3% 75.04 25.0% Crowne
Slide 5: RevPAR – 3 Months to 31 December 2004 Franchised & Total
RevPAR – 3 Months to 31 December 2004 Franchised & Total Franchised Total Occ % ADR RevPAR Occ % ADR RevPAR 2004 Pts 2004 Growth 2004 Growth 2004 Pts 2004 Growth 2004 Growth InterContinental 56.0% 4.9% 103.05 (6.8%) 57.71 2.0% 60.6% 4.1% 134.87 (0.6%) 81.70 6.6% Crowne Plaza 58.5% 0.4% 92.44 4.4% 54
Slide 6: RevPAR – 12 Months to 31 December 2004 Owned/Leased Comparable & Managed
RevPAR – 12 Months to 31 December 2004 Owned/Leased Comparable & Managed Owned & Leased Comparable Managed Occ % ADR RevPAR Occ % ADR RevPAR 2004 Pts 2004 Growth 2004 Growth 2004 Pts 2004 Growth 2004 Growth InterContinental 69.5% 2.0% 168.66 5.1% 117.15 8.1% 56.3% 7.8% 119.77 3.2% 67.40 19.7% Crowne
Slide 7: RevPAR – 12 Months to 31 December 2004 Franchised & Total
RevPAR – 12 Months to 31 December 2004 Franchised & Total Franchised Total Occ % ADR RevPAR Occ % ADR RevPAR 2004 Pts 2004 Growth 2004 Growth 2004 Pts 2004 Growth 2004 Growth InterContinental 58.0% 5.7% 101.97 (5.1%) 59.15 5.3% 60.4% 5.1% 129.83 (0.1%) 78.47 9.2% Crowne Plaza 62.3% 1.8% 91.28 1.5% 5
Slide 8: Current Trading – RevPAR
Current Trading – RevPAR CURRENT TRADING 2004 Oct Nov Dec Q4 YTD Jan REVPAR % change December 2005 AMERICAS IC O&L Comparable 6.2% 1.4% 8.0% 5.1% 8.1% 7.7% NA Total Crowne Plaza 10.6% 5.3% 6.1% 7.5% 7.9% 6.2% NA Total Holiday Inn 6.5% 5.1% 5.4% 5.8% 5.3% 6.6% NA Total Express 8.3% 10.8% 8.1% 9.1% 7.
Slide 9: Current Trading – Occupancy
Current Trading – Occupancy CURRENT TRADING 2004 Oct Nov Dec Q4 YTD Jan Occupancy %pts change December 2005 AMERICAS IC O&L Comparable 2.0% (1.9%) 0.9% 0.4% 2.0% 1.3% NA Total Crowne Plaza 3.7% 0.1% (0.2%) 1.2% 3.2% (0.9%) NA Total Holiday Inn 1.8% 0.7% 0.5% 1.0% 1.6% 0.6% NA Total Express 1.8% 2.8%
Slide 10: Current Trading – Average Daily Rate
Current Trading – Average Daily rate CURRENT TRADING 2004 Oct Nov Dec Q4 YTD Jan ADR % change December 2005 AMERICAS IC O&L Comparable 3.4% 4.1% 6.3% 4.5% 5.1% 5.3% NA Total Crowne Plaza 4.9% 5.1% 6.4% 5.4% 2.7% 7.9% NA Total Holiday Inn 3.6% 3.7% 4.3% 3.8% 2.6% 5.2% NA Total Express 5.4% 5.6% 5.6%
Slide 11: System Size – Total at 31 December 2004
System Size – Total at 31 December 2004 Owned & Leased Managed Franchised Total Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms InterContinental 10 4,489 16 5,375 18 5,224 44 15,088 Crowne Plaza 6 2,284 18 6,299 92 25,062 116 33,645 Holiday Inn 8 2,577 53 17,045 1,013 185,878 1,074 205,500 Expre
Slide 12: Pipeline – Total at 31 December 2004
Pipeline – Total at 31 December 2004 Owned & Leased Managed Franchised Total Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms InterContinental 1 420 3 1,444 - - 4 1,864 Crowne Plaza - - 1 250 17 3,691 18 3,941 Holiday Inn - - 3 502 101 12,821 104 13,323 Express - - - - 318 26,587 318 26,587 Stayb
Slide 13: IFRS
y INTERCONTINENTAL. w HOTELS GROUF IFRS
Slide 14: Share based payments
Share based payments Current UK For share based performance awards an expense is GAAP reporting recognised based on the difference between exercise price and the market value at date of grant. The anticipated expense is recognised over the performance period of the scheme. An expense is only recogni
Slide 15: Goodwill amortisation
Goodwill amortisation Current UK Goodwill is amortised over a maximum period of 20 GAAP years. reporting IFRS reporting Goodwill is recognised as an asset and tested annually for impairment. Amortisation is not charged. Impact on 2004 £10m positive in 2004 – similar impact for 2005 operating profit
Slide 16: Pension accounting – Profit and loss account treatment
Pension accounting Profit and loss account treatment Current UK GAAP Defined benefit scheme: Under SSAP 24, the cost of benefits is based reporting upon a consistent percentage of employees pay as advised by an actuary. Variations in regular cost are amortised over the average service lives of curre
Slide 17: Pension accounting – Balance sheet treatment
Pension accounting Balance sheet treatment Current UK Defined benefit schemes: Differences between amounts GAAP reporting charged to the profit and loss account and cash payments made to the pension schemes are recognised in the balance sheet. Full Supplemental disclosures are given under FRS 17. IF
Slide 18: Deferred tax
Deferred tax Current UK FRS 19 does not require deferred tax liabilities to GAAP be recognised on revaluations, rolled over gains reporting and unremitted earnings of foreign trade investments. IFRS reporting IAS 12 requires full provision for all temporary differences. This increases deferred tax l
Slide 19: Assets classified as held for sale
Assets classified as held for sale Current UK Assets and liabilities relating to the disposal programme GAAP reporting are shown in the relevant balance sheet heading and depreciated as normal. IFRS reporting Assets and liabilities (including related deferred tax) are normally classified as held for
Slide 20: Discontinued Operations
Discontinued Operations Current UK Turnover, expenses and profits are classified as GAAP reporting discontinued when a sale occurs in the reporting period or before approval of the financial statements and the operation sold represents a significant part of the business. Discontinued results are sho
Slide 21: Exchange of Assets
Exchange of Assets Current UK On a sale of assets any profit or loss is calculated by GAAP reporting comparing cash proceeds to the net book value of the assets sold. No value is attributed to any other elements of a sale agreement IFRS Reports In the circumstance of a hotel or other asset being sol
Slide 22: 2004 Quarterly Operating Profit (£m) adjusted for IFRS
2004 Quarterly Operating Profit (£m) adjusted for IFRS £m CY 2004 Actuals Q1 (Jan - Mar) Q2 (Apr - Jun) Q3 (July - Sept) Q4 (Oct - Dec) YEAR (Jan - Dec) Turnover Profit Turnover Profit Turnover Profit Turnover P rofit Turnover Profit Americas Owned & leased 65 4 71 8 63 3 70 12 269 27 Managed 7 0 8
Slide 23: 2004 Quarterly Operating Profit ($m) adjusted for IFRS
2004 Quarterly Operating Profit ($m) adjusted for IFRS $m CY 2004 Actuals Q1 (Jan - Mar) Q2 (Apr - Jun) Q3 (July - Sept) Q4 (Oct - Dec) YEAR (Jan - Dec) Turnover Profit Turnover Profit Turnover Profit Turnover P rofit Turnover Profit Americas Owned & leased 119 6 129 16 113 6 129 21 490 49 Managed 1
InterContinental Hotels Group — FY2004 Earnings Presentation on 6ix