Slide 1: Making everyday experiences special – Full Year Results 2014/15
“Making everyday experiences special” 28 April 2015 FULL YEAR RESULTS 2014/15
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) is provided on a strictly may be lawfully communicated, falling within Article 49 of the analysis of the Company. Recipients of this Presentation should each private and confidential basis for information purposes only. Order or otherwise. make their
Slide 3: Richard Baker, Chairman
Richard Baker Chairman Customer) Heartbeat) 3
Slide 4: Andy Harrison, Chief Executive
Andy Harrison Chief Executive 4
Slide 5: Strong growth
Strong growth Revenue) Like)for)like)sales)growth) PBT) ) ) ) +18.5% Revenue)and)) ) +13.7% ) ) Underlying)PBT) )£ 2.6bn) '6.5 %) )£ 488.1m' EBITDA) Net)debt)of) Capital*)) £191.6m £259.1m ) +15.5% Capital) ) ) ) management)) and)cash)flow) )£ 670.3m' £583.2m' ) ))£' 565.3m' ) Underlying)) Dividend)p
Slide 6: Double digit profitable organic growth
Double digit profitable organic growth • Premier Inn sales up 15.3% – Rooms available up 6.1% – Revpar up 8.7% – Record occupancy 81.3% (up 3.2%pts) • Costa sales up 17.9% – UK like for like sales up 6.0% – 219 net new stores worldwide – 777 net new Costa Express machines • On track for 2016 and 201
Slide 7: New 2020 Milestones – continuing growth
New 2020 Milestones – continuing growth Published Milestones 2014/ 2016 2018 2020 ' *' *' 15' 59,138) c.65,000' c.75,000' c.85,000' UK rooms † £1.4bn) c.£1.3bn' c.£2.0bn' c.£2.5bn' System sales** 7 * Calendar year † UK and Ireland ** Worldwide
Slide 8: Nicholas Cadbury, Group Finance Director
Nicholas Cadbury Group Finance Director 8
Slide 9: Underlying profit before tax up 18.5%
Underlying profit before tax up 18.5% £m' 2013/14' 2014/15' Change' Revenue 2,294.3 2,608.1 13.7% Profit from operations 457.9 533.9 16.6% Central costs (27.2) (29.5) (8.5)% Underlying operating profit 430.7 504.4 17.1% Interest (18.9) (16.3) 13.8% Underlying profit before tax 411.8 488.1 18.5% Basi
Slide 10: Strong performance in both Hotels and Restaurants and Costa
Strong performance in both Hotels and Restaurants and Costa Profit'(£m)' 2013/14' '2014/15' Change' Hotels and Restaurants – UK & Ireland 354.1 406.6 14.8% Hotels and Restaurants – International (6.0) (5.2) 13.3% Total Hotels and Restaurants 348.1 401.4 15.3% Costa - UK 110.9 131.4 18.5% Costa - Inte
Slide 11: Continued strong revenue growth
Continued strong revenue growth Revenue'(£m)' Total'sales' Growth'' UK'like'for'like'' Like for like revpar: Premier Inn 1,116.4 15.3% 9.1% London 2.0% Regions 9.4% Restaurants 542.8 3.2% 2.1% Like for like covers 0.4% Total Hotels and Restaurants 1,659.2 11.1% 6.6% Costa - UK 838.9 18.5% 6.0% Like
Slide 12: Costa International – continuing to invest for growth
Costa International – continuing to invest for growth Profit movement year on year (£m) +£1.1m £(1.1)m 2013/14''''''''''''''''''''''' Franchise China Poland France':'''''''''''''''''''''''''''''''''''''''''' 2014/15'''''''''''''''''''' PBIT set'up PBIT • Good progress in Franchise and like for like
Slide 13: Strong EBITDA providing cash generation to fund capital investment
Strong EBITDA providing cash generation to fund capital investment £m EBITDA*) 503 581 666 Capital)investments**) (344) (306) (565) Financing,)pension)and)tax) (119) (172) Dividend) (78) (62) (183) (131) FY/2012/13 FY/2013/14 FY/2014/15 Net)debt) 471.1) 391.6) 583.2) • Capex increase driven by addit
Slide 14: Capital expenditure driving future EBITDA growth
Capital expenditure driving future EBITDA growth Cash)capital)(£m)) Full)year) Year)on)year) Hotels'and'Restaurants' 483' +'252' Expansion'capital'T'growing'pipeline'and'room'openings' 333) +)186) • Acquisi[on)of)freehold)proper[es)\)£192m)) +)129) • Opened)778)extension)rooms)\)£52m) ) ) • Freehold
Slide 15: Success in growing share of freehold pipeline in London
Success in growing share of freehold pipeline in London 2012/13 Committed pipeline* 2014/15 Committed pipeline** c.10,000 rooms 12,465 rooms 6,897 6,100 5,568 3,900 London) Regions) London) Regions) • 65% of current estate is freehold (Regions 68%, London 50%) • Post completion of the 12,465 room pi
Slide 16: Benefits of freehold
Benefits of freehold • Swaps off balance sheet lease liabilities for on balance sheet debt – Replaces lease costs (c.7%-8%) with debt financing (c.3%-4%) • Retains a greater proportion of the site’s profit including – Site development profits – Full value from operational improvements • Enable low r
Slide 17: Strong balance sheet supporting organic growth
Strong balance sheet supporting organic growth £m Maintaining adjusted net debt to EBITDAR <3.5 • Diverse source of funds – Funds from operations 3.1x' 3.2x' mul[ple' 2,775 mul[ple' (EBITDA* £665.8m 2014/15) 2,372 – Committed bank facility: £650m – 2019 Net)debt) – US private placements: Pension) £2
Slide 18: Improving returns
Improving returns Hotels'and'Restaurants' Costa' Group' 46.3%) 40.5%) 15.3%) 15.7%) 13.3%) 13.5%) 2013/14) 2014/15) 2013/14) 2014/15) 2013/14) 2014/15) Return)excluding)freehold)development)under)construc[on) 13.5%) 14.0%) 15.4%) 16.2%) Returns are calculated by dividing the underlying PBIT for the
Slide 19: Pensions
Pensions • IAS 19(R) pension deficit of £553.8m gross of tax (£534.3m as at February 2014) – Reduction in discount rate from 4.3% to 3.3% – Increased life expectancy – Partially offset by company’s contributions and asset performance • Triennial pension review finalised based on March 2014 valuation
Slide 20: Interest and taxation
Interest and taxation • Underlying interest charge of £16.3m (2013/14 £18.9m) £m 2013/14 2014/15 – Loans and overdraft charge (20.6) (21.1) – Interest capitalised 2.6 4.3 Interest capitalised increasing in line with freehold work in progress and currently – Other (0.9) 0.5 expected to be c.£8m in 20
Slide 21: Considerations for 2015/16
Considerations for 2015/16 • Regional hotel market revpar bounced back in 2014/15 – Regional total market revpar +10.1% 2014/15 and 6.2% 2013/14 – London total market revpar +2.7% 2014/15 and 2.2% 2013/14 • UK market forecast* revpar growth of around 5.0% • Premier Inn adding c.7-8% available rooms
Slide 22: Considerations for 2015/16 - step up in room openings, London growth and product investment
Considerations for 2015/16 - step up in room openings, London growth and product investment Cash)capital)(£m)) 2015/16)) Year)on)year) es[mate) Hotels'and'Restaurants' c.600' +'117' Step'up'in'room'openings'and'future'pipeline' c.395' +'65' • Increase)in)room)openings)(c.5,500)new)rooms)) • Includin
Slide 23: Summary
Summary • A strong performance, delivered – Underlying profit before tax growth of 18.5% and EPS growth of 19.4% – Return on capital up 0.4%pts to 15.7% • Growth driven by – Investment in new hotels and improving the quality of our estate – Recovery of the regional hotel market – Expansion and innov
Slide 24: Andy Harrison, Chief Executive
Andy Harrison Chief Executive 24
Slide 25: Agenda
Agenda 1 Context for new 2020 Milestones 2 Whitbread Hotels and Restaurants 3 Costa 4 Good Together 5 Summary 25
Slide 26: Context for new 2020 Milestones
Context for new 2020 Milestones • Whitbread’s success – Two leading UK brands with winning customer propositions – Winning market share • UK hotel market now recovering • Structural growth in UK coffee market – Good margins – reinvesting in our people, customers and infrastructure – Strong cashflow
Slide 27: Making Everyday Experiences Special
“Making Everyday Experiences Special” Customer) Heartbeat) Investing in our people Investing in our customers • Top quartile Employee Engagement* • Strong customer net promoter scores • 6,000 apprenticeships targeted by 2020 • Best Western European Coffee shop (Allegra) • c.15,000 new UK jobs – c.60
Slide 28: Sustained shareholder value creation
Sustained shareholder value creation 2,608.1) 2,294.3) 11.5% CAGR 2,030.0) 213.67) 1,778.0) 1,599.6) 179.02) 1,334.6) 1,435.0) 149.10) 13.7% Sales)(£m)) 1,216.7) 133.60) CAGR 116.01) Underlying*) 87.22) 90.05) 96.21) 82.15) basic)EPS)(p)) 57.40) 68.80) 44.50) 51.25) 12.5% 36.00) 36.55) 38.00) DPS)(p
Slide 29: Premier Inn
8) Premier Inn
Slide 30: A premier opportunity – extending our lead
A premier opportunity – extending our lead Strong market leader, Plenty of opportunity winning share • UK economy recovering increasing demand • Leading brand and best value for money • Winning share from decline in • Best UK network offering best customer independents choice • ‘hub’ compact city ce
Slide 31: 2020 Milestones – c.85,000 rooms
2020 Milestones – c.85,000 rooms Premier Inn UK* rooms c.85,000)rooms) +4,103) +3,364) c.75,000)rooms) +4,242) rooms) rooms) +4,055) rooms) c.65,000)rooms) rooms) 59,138) 55,035) 51,671) 47,429) 43,374) c.5,000 rooms p.a. c.4,500 rooms p.a. 2010/11) 2011/12) 2012/13) 2013/14) 2014/15) 2016) 2018)**)
Slide 32: Premier Inn extending our lead
Premier Inn extending our lead Record occupancy Best customer 81.3% choice Customer) Heartbeat) Direct distribution c.£140m investment 80% in 2015/16 32
Slide 33: Network strength – best customer choice
Network strength – best customer choice Number of UK hotels c.900 hotels c.830 hotels c.740 hotels 697* 672* 649* Gap)of) Gap)of) Gap)of) 519 500 194) 503 130) 172) 125 126 128 57 59 59 2012/13) 2013/14) 2014/15) 2016)milestone)*) 2016 Milestone 2018)milestone)*) 2018 Milestone ** 2020)milestone)*)
Slide 34: Investing in our customer experience
Investing in our customer experience • Investment of c.£100m in 2014/15 (c.£80m in 2013/14) in product improvement and maintenance – Free Wi-Fi launched in February 2015 – c.21,000 new beds rolled out – c.3,000 full room refurbishments – c.1,000 light room refurbishments – c.8,700 rooms painted and
Slide 35: premierinn.com – 80% direct distribution
premierinn.com – 80% direct distribution Volume of reservations by channel • Mobile devices now account for 11%) Non-automated 45% of total visits, +34% year 17%) 15%) 23%) 9%) on year 33%) Web indirect 6%' 8%) 5%) • Smartphones now account 4%) for c.30% of weekly traffic, +46% year on year 80%) Pre
Slide 36: Dynamic pricing – a winning combination
Dynamic pricing – a winning combination Record' Occupancy' 81.3%' ' Rooms' Balanced' Good return available' on capital ARR' growth'' growth' 13.5% +6.1%' +4.5%'' ' ' Leading' value'for' money' ) 36
Slide 37: London capacity up 14.0%, sales up 15.6% and maintaining occupancy
London capacity up 14.0%, sales up 15.6% and maintaining occupancy Total occupancy 2014/15 86.1%) 92.0%) 92.9%) 87.3%) 90.2%) 84.7%) 71.0%) 2014/15' Available' +'14.0%' rooms' Total) Monday) Tuesday) Wednesday) Thursday) Friday) Saturday) Sunday) +)1.7%) £77.45) revpar) Total revpar 2014/15 vs 2013/
Slide 38: Regions capacity up 5.0%, sales up 15.2% – supported by market recovery
Regions capacity up 5.0%, sales up 15.2% – supported by market recovery Total occupancy 2014/15 81.7%) 88.3%) 88.2%) 88.4%) 80.3%) 79.5%) 2014/15' 58.1%) Available' +'5.0%' rooms' Total) Monday) Tuesday) Wednesday) Thursday) Friday) Saturday) Sunday) +)9.7%) £44.35) revpar) Total revpar 2014/15 vs 2
Slide 39: Top customer satisfaction
Top customer satisfaction • TripAdvisor score 4.3 out of 5.0 YouGov value for money measure 35.0) UK hotel chains customer scores 30.0) Sofitel) 3 hotels 83%) 25.0) PI) 668 hotels 82%' Warner)Leisure) 13 hotels 80%) 20.0) Travelodge Hampton)by)Hilton) 14 hotels 78%) 15.0) Q)Hotels) 21 hotels 78%) 10.
Slide 40: 2020 Milestones – c.85,000 UK rooms
2020 Milestones – c.85,000 UK rooms New room c.5,500 c.5,000 p.a. c.5,000 p.a. openings 2020* c.85,000 2018* c.75,000 (600) 2016 Today c.65,000 (600) 59,138 (200) + 12,465 pipeline 2015/16 2017 - 2018 2018 - 2020 40 Premier Inn Closures Committed pipeline Uncommitted P = Projected * Calendar year
Slide 41: Structural growth opportunity
Structural growth opportunity Total'UK' 684,000' 676,000' 688,000' 715,000' 740,000' 762,000' hotel'market) rooms' rooms' rooms' rooms' rooms' rooms' 18%) 20%) 22%) 24%) 26%) 27%) 23%) 25%) 25%) 25%) 26%) 26%) 59%) 55%) 53%) 51%) 48%) 46%) 2010) 2012) 2014) 2016) 2018) 2020) Rooms 42,000 47,000 55,0
Slide 42: Regional growth opportunity
Regional growth opportunity • Network model identified 15%) 12%) Scotland) – 413 UK micro markets – Occupancy 80.6% – c.4,000 extension opportunity 4%) North)East) 4%) • Limited competitive pipeline 7%) 17%) North)West) 8%) 4%) • By 2020 additional c.16,000 rooms Yorkshire)&)Humberside) in regions –
Slide 43: London (M25) growth opportunities
London (M25) growth opportunities* 6%) 8%) 1%) Micro market ‘examples’ 4%) 2%) 2%) Kings)Cross/ South)Bank) Euston) Togenham) 3%) Holborn) Wembley) Old)Street) 7%) 8%) 1%) 1%) Paddington) 2%) 2%) 4%) 4%) 0%) Islington) Lambeth) 1%) 0%) 0%) Wimbledon) 1%) 2%) 2%) Southwark) 4%) Cobham) 2%) Westminste
Slide 44: Substantial growth opportunity from London
Substantial growth opportunity from London ‘hub’ Premier Inn rooms in London ‘hub’ c.3,500 c.2,500 ‘hub’ c.2,100 c.20,000 c.18,000 M25 ‘hub’ 15,782 c.3,750 163 c.3,500 3,295 Greater London 10,214 c.7,000 c.7,750 2,424 6,537 Central 4,012 London 5,950 c.7,500 c.8,500 3,778 2014/15 Total including com
Slide 45: New London hotels performing well and maturing fast
New London hotels performing well and maturing fast Occupancy'' Revpar' Monument)(new)) Opened)2013) 83%) £94) Holborn)(new)) Opened)August)2014) 89%) £97) St)Mar[n’s)Lane) Opened)November)2014) 83%) £74) Blackfriars) 84%) £94) Euston) 91%) £100) King’s)Cross) 93%) £101) 45
Slide 46: ‘hub’ – compact city centre opportunity
‘hub’ – compact city centre opportunity • St Martin’s Lane – first 14 weeks Comparison of – ARR c.£90 room footprint – (16% lower than Premier Inn Central London*) – Occupancy 83% Premier Inn = – 100% booked direct 21.4 Sq m • TripAdvisor scores 4.4 – 90% excellent or very good experience ‘hub’ = 11
Slide 47: ‘hub’ giving access to Central London and good target returns
‘hub’ giving access to Central London and good target returns • c.2,000 rooms committed, 10 hotels • c.3,500 rooms by 2020 Indica[ve'' St'Mar[n’s' Westminster' returns*' Lane'site' sites' ' ' (Dacre'&'Tothill' ' ' Street)' Rooms) 163) 453) EBITDA)) c.£4.5m) c.£15.0m) Capital**) c.£33m) c.£120m) Retu
Slide 48: Overseas – context for 2020
Overseas – context for 2020 International – Capital light • Growing positions in high growth emerging markets • New business, new markets from 2010 • Establishing brand presence in the Middle East, India and South East Asia • Takes longer to build pipeline • Targeting good returns with management co
Slide 49: Premier Inn International – building scale
Premier Inn International – building scale • Middle East performing well, India progressing – Like for like occupancy of 79.6% up 2.1%pts – Like for like revpar of £35.68 up 10.5% • Committed pipeline of 4,242 rooms Potential – Growing importance of SE Asia • 2020 - c.10,000 rooms 2,570 – Double dig
Slide 50: Premier Inn Germany – plans
Premier Inn Germany – plans • First hotel in Germany opens H1 2016/17 • Minimum scale 12-15 hotels in 6-8 cities – Of which 6-8 hotels open by 2020 – Break even around 8 hotels – Profit growth platform – 5-7 years 50
Slide 51: Capital commitment – delivering returns
Capital commitment – delivering returns Annual'capital'spend' Return'on'capital'' Property'' (es[mate)' %' UK) £400)\)500m) Freehold)and)leasehold) 12%)\)15%) Germany) £50)\)70m) Ini[ally)freehold) Building)to)UK)at)maturity) Interna[onal)) Increasingly)management) (GCC,)South)East)Asia,)India)) £20
Slide 52: 52
52
Slide 53: Good overall Restaurants performance
Good overall Restaurants performance • Whitbread joint sites support Premier Inn network • Total sales £542.8m, up +3.2% – Like for like sales up +2.1%, covers up 0.4% – Continue to outperform Coffer Peach benchmark* – Good Q1–Q3, market slower in Q4 • Guest Net Recommend up +1.3%pts to 67.4% • Marg
Slide 54: 54
54
Slide 55: Context for 2020 Milestones
Context for 2020 Milestones • Costa UK Retail goes from strength to strength, winning share in a growing market • UK coffee shop market expects continued strong growth (Allegra total market 6.5% growth in outlets to 2020) – Positive social demographic changes – Online retail changing the high street
Slide 56: New 2020 Milestones
New 2020 Milestones System sales (£m) c.2,500 c.2,000 21% CAGR 1,399 c.1,300 c.12% CAGR 659 c.15% CAGR 2010/11) 2011/12) 2012/13) 2013/14) 2014/15) 2016) 2018)*) 2020)*) Set 2016 Milestone International Set 2018 Milestone Set 2020 Milestone of £1,300m Achieved c. one third of c.£2,000m of c.£2,500m
Slide 57: Costa – another excellent performance
Costa – another excellent performance Underlying PBIT (£m) 132.5) • System sales up 16.6% to £1.4bn • UK equity like for like sales + 6.0% 109.8) • 219 net new stores 34% 90.1) CAGR • 777 net new Express machines to 4,292 69.7) • Improvements in brand performance scores 50.5) 36.2) 22.7) 2008/09) 20
Slide 58: UK retail – winning in a growing market
UK retail – winning in a growing market Total)market) UK coffee shop market, number of outlets * Global coffee consumption 2008 to 2018 CAGR (kg/capita/year) ** 6.5% 27,422 Finland 12.2 CAGR Norway 9.5 7,709) 4.9% 18,832 Sweden 7.1 5,781) CAGR Germany 7.0 7,870) 4.5% 10,685 France 5.5 6,034) 4,086)
Slide 59: Costa UK – the UK’s favourite coffee shop
Costa UK – the UK’s favourite coffee shop Number of UK stores † Preference ** Costa is the UK’s favourite 1,931) 38%' 1,755) 1,578) 12% 1,392) 31% 757) 790) 824) 22%' 743) 560) 590) 490) 530) 17% 12% 11% 2008) 2009) 2010) 2011) 2012) 2013) 2014) 2015) 2011) 2012) 2013) 2014) Starbucks Nero )Costa) )
Slide 60: Multi-channel drives transaction growth
Multi-channel drives transaction growth Bedford – Silver Street store (2012) Store concessions £12k to £56k per week Midland Road store (2007) Retail park Education colleges Retail park Hospital Railway station Drive Thru (2013) Drive Thru (2015) Retail park (2014) 60 * To week 50 Current store loca
Slide 61: Driving new growth opportunities
Driving new growth opportunities Drive Thru Growth Concession Retail parks opportunity through store segmentation – c.2,500 UK stores by 2020 Universities/hospitals High Street Transport 61
Slide 62: Innovation throughout the day
Innovation throughout the day '''''''Breakfast' Lunch' Afernoon' 62
Slide 63: Demonstrating our coffee expertise
Demonstrating our coffee expertise Mocha'Italia' Old'Paradise'Street' Coffee'quality' 63
Slide 64: Costa Express – continuing success
Costa Express – continuing success • Channel focus Costa Express machines – Travel c.8,000 – Business and Industry – Education • 338 Costa Express machines international 4,292 • This year c.700-800 new machines • Looking to double the number of machines 877 by 2020 Coffee)Na[on) 2014/15) 2020*) 64 *
Slide 65: EMEI – Growing the brand
EMEI – Growing the brand • Poland – making progress – Rebranded 53% of the estate to Costa – Positive like for like growth – Food product development – Closed 8 unprofitable stores • France – early days – 11 equity/3 franchise stores – Trialing Costa Express machines – Up to half a dozen new stores
Slide 66: China – a great opportunity
China – a great opportunity • 344 stores in 31 cities • Mid single digit like for like sales growth • Like for like profit contribution broadly similar to the UK • Aiming for – c.700 stores by 2018 – c.900 stores by 2020 66
Slide 67: Delivering on 2017/18 targets
Delivering on 2017/18 targets Good'for'Teams'' Good'for'Customer' Good'for' and'Community' Well'Being' Environment' 3,000)new)jobs)created) Sustainable)supply)chain)process)launched)to) Hit)carbon)targets) suppliers)) Over)940)appren[ces)in)learning)–)) Detailed)review)and)classifica[on)of) Hit)water
Slide 68: New 2020 targets
New 2020 targets Good'for'Teams'' Good'for'Customer' Good'for' and'Community' Well'Being' Environment' 6,000)appren[ceships) 100%)accredited)supply)for)each)cri[cal) 15%)carbon)reduc[on)) product,)e.g.)[mber,)fish,)tea,)coffee,)palm)oil) 7,500)work)experience)placements) Commitment)to)set)targets)for)
Slide 69: Current trading and outlook
Current trading and outlook • Positive market backdrop – Recovery in the regional hotel market – London hotel market solid growth – Structural growth in UK coffee shop market • Trading for first few weeks of 2015/16 on plan – Good momentum for Premier Inn and Costa – Restaurants slightly ahead of a
Slide 70: Continuing shareholder value creation
Continuing shareholder value creation • Premier Inn UK – Clear market leader – extending our lead – Winning share in a market returning to growth • Costa UK – Clear market leader – brand continues to strengthen – Market growth continues – socio demographic and online retail • Economic recovery bring
Slide 71: Appendix
(q Appendix = aie
Slide 72: Underlying profit after tax and exceptionals
Underlying profit after tax and exceptionals £m' 2013/14' 2014/15' Change' Underlying profit before tax 411.8 488.1 18.5% Pension finance cost - IAS 19(R) (23.6) (21.6) 8.5% Amortisation of acquired intangibles (2.7) (2.5) 7.4% Profit before tax, pre exceptionals 385.5 464.0 20.4% Taxation* ETR 21.5
Slide 73: Group like for like sales growth + 6.5%
Group like for like sales growth + 6.5% • Premier Inn +9.1% • Restaurants +2.1% • Costa +6.0% – Benefitting from bounce back – Good Q1 – Q3 with soft Jan/Feb – Consistent strong like for like in regional revpar growth led by transaction growth of 4.6% 9.6%$ 8.7%$ 6.9%$ 5.5%$ 5.8%$ 6.1%$ 5.9%$ 3.3%$
Slide 74: Success in growing London pipeline
Success in growing London pipeline Committed pipeline Actual openings Committed pipeline openings Freehold Freehold Freehold c.7,000 % % % 12,465 c.11,000 c.5,500 3,000 4,360 28% 6,897 6,500 53% 58% 4,200 2,875 4,000 48% 4,500 5,568 1,485 13% 21% 1,300 2013/14 2014/15 2014/15 2015/16 2016-2018 estim
Slide 75: Lease commitments and depreciation
Lease commitments and depreciation Annual'rent'(£m)' 2013/14' 2014/15' • Hotel and Restaurants rent Hotels and Restaurants 89.0 107.5 expected to increase by Costa 92.5 101.0 c.£20m in 2015/16 Total property rent* 181.7 208.7 Plant & Machinery operating lease 8.8 7.8 payments Annual'deprecia[on'(£m)
Slide 76: Pension payments
Pension payments £m 2014/15 liability (553.8) Deficit recovery plan: • August 2015 65.0 • August 2016 70.0 • August 2017 80.0 • August 2018 – 2021 (p.a) 80.0 • August 2022 17.0 Accelerated payments (maximum p.a.) 5.0 Moorgate Scottish Limited Partnership* (p.a.) c.9.0-10.0 * 2014/15 payment of £8.9m
Slide 77: Premier Inn International – building scale
Premier Inn International – building scale Increasing Capital Light Growing Importance of pipeline South East Asia 4 15 2 22 7 4 12 3 2 8 7 5 5 Open Committed MOUs Open Committed MOUs Pipeline Pipeline 77 Light Heavy Middle East India South East Asia
Slide 78: Strength and breadth
Strength and breadth UK Retail Costa Enterprises Costa EMEI Costa Asia UK Retail Equity stores Costa Enterprises Costa Express Europe, Costa EMEI China Costa and Asia Individual Equity stores Corporate Equity stores Middle Europe, EastEast Middle South East China Asia and franchise Individual franch
Slide 79: Standard information – general definitions
STANDARD INFORMATION - GENERAL Average)Room)Rate) )Hotel)accommoda[on)income)divided)by)the)number)of)rooms)occupied)by)guests) (ARR)) ) Income)before)fixed)costs )Hotels)&)Restaurants)opera[ng)profit)before)directly)agributable)fixed)costs)) (IBFC) )(such)as)rent,)rates,)insurance,)etc.),)head)office)an
Slide 80: Hotels and Restaurants
Hotels and Restaurants Full Year Full Year 2014/15 2013/14R Solus 1 Sales £m 704.8 600.1 IBFC £m 403.6 340.1 IAFC 2 £m 228.4 191.0 Net Assets 3 £m 1,379.1 1,127.8 Return on Capital 4 % 16.6% 16.9% Joint 5 Sales £m 954.0 893.9 IBFC £m 420.2 383.9 IAFC £m 293.4 265.1 Net Assets £m 1,567.9 1,463.6 Retu
Slide 81: Hotels and Restaurants cont.
Hotels and Restaurants cont. Full Year Full Year 2014/15 2013/14 Number of Rooms Solus : - Managed 33,559 30,302 - Associate 282 282 - Franchise & Management Contract 194 449 Total Solus 34,035 31,033 Joint Sites 25,103 24,002 Total UK & Ireland 59,138 55,035 International 1,703 1,703 Total Rooms 60
Slide 82: Costa
Costa Full Year Full Year 2014/15 2013/14 System Sales - Total £m 1,398.7 1,199.2 Sales - Total £m 951.9 807.7 EBITDA from Operations £m 187.9 159.4 Underlying operating profit £m 132.5 109.8 Segmental Net Assets £m 286.1 271.4 Cash - Capital Expenditure - Total 1 £m 71.8 74.2 Cash - Business combin
Slide 83: Making everyday experiences special
“Making everyday experiences special” 28 April 2015 FULL YEAR RESULTS 2014/15