Slide 1: On our advantage: FY24 Results
on our advantage FY24 RESULTS 30 APRIL 2024
Slide 2: Contents
This document has been marked as Non-Confidential CONTENTS HIGHLIGHTS MARYLEBONE HUB FINANCIAL REVIEW STRATEGY UPDATE CAPITAL ALLOCATION & OUTLOOK CONCLUSION 2
Slide 3: Highlights
This document has been marked as Non-Confidential CARDIFF CENTRAL HIGHLIGHTS DOMINIC PAUL І CHIEF EXECUTIVE
Slide 4: FY24 unique business model delivering significant growth at higher returns
This document has been marked as Non-Confidential FY24 І UNIQUE BUSINESS MODEL DELIVERING SIGNIFICANT GROWTH AT HIGHER RETURNS UK VERTICALLY INTEGRATED OPERATING MODEL GERMANY DIRECT DISTRIBUTION COMMERCIAL EXCELLENCE OPERATIONAL CONTROL 92,000 16,500 ROOMS OPEN AND ROOMS OPEN AND COMMITTED FREEHOLD
Slide 5: FY24 record levels of profit and cashflow
This document has been marked as Non-Confidential FY24 І RECORD LEVELS OF PROFIT AND CASHFLOW REVENUE & PROFIT MARGINS & ROCE CASHFLOW & RETURNS REVENUE UK PRE-TAX MARGINS EBITDAR £3.0bn +13% 21.2% +160bps £1.1bn +£0.2bn FY24 VS FY23 FY24 VS FY23 FY24 VS FY23 PROFIT BEFORE TAX UK ROCE FURTHER SHAREH
Slide 6: Outlook: positioned for long-term profitable growth
This document has been marked as Non-Confidential OUTLOOK | POSITIONED FOR LONG-TERM PROFITABLE GROWTH EXTENDING OUR BECOMING ENABLING UK MARKET NO. 1 IN LONG-TERM LEADING POSITION GERMANY GROWTH EXTENSIONS UNDERPIN £1.1bn 900+ 97,000+ COMMITTED CAPITAL ALL HOTELS NOW ON UK ROOMS BY FY29 UPGRADED PL
Slide 7: Financial Review
This document has been marked as Non-Confidential MARYLEBONE HUB FINANCIAL REVIEW HEMANT PATEL І CFO
Slide 8: Financials: Group highlights
This document has been marked as Non-Confidential FINANCIALS | GROUP HIGHLIGHTS vs £m FY24 FY23 FY23 • Increase in revenues led by: Statutory revenue (2,960) (2,625) (13% • UK hotels • progress in Germany Operating costs (1,906) (1,742) (9)% • Increased operating costs from over Adjusted EBITDAR (1,
Slide 9: Financials: UK highlights
This document has been marked as Non-Confidential FINANCIALS | UK HIGHLIGHTS vs £m FY24 FY23 FY23 • High occupancy and strong ARRs led to increased accommodation sales Statutory revenue (2,770) 2,508 10% Other income (excl. rental income) -) 5 (100)% • EBITDAR growth underpinned by £50m of cost effi
Slide 10: UK: Accommodation sales well ahead of FY23 and FY20
This document has been marked as Non-Confidential UK | ACCOMMODATION SALES WELL AHEAD OF FY23 AND FY20 ACCOMMODATION SALES REVPAR vs +56% +50% +53% vs +42% +38% +40% FY20 FY20 vs vs FY23 15% FY23 14% 12% 10% 8% 6% H1 FY24 H2 FY24 FY24 H1 FY24 H2 FY24 FY24 OCCUPANCY ARR vs +6pp +6pp +6pp vs +31% +27%
Slide 11: UK: Continued market outperformance
This document has been marked as Non-Confidential UK | CONTINUED MARKET OUTPERFORMANCE +3.8pp +3.1pp +2.3pp PI Accommodation sales performance1 vs M&E H1 FY24 H2 FY24 FY24 PI Occupancy performance1 vs M&E (1.0)pp (0.9)pp (0.9)pp PI ARR performance1 vs M&E 1.7pp 2.5pp 2.1pp PI RevPAR premium1 vs M&E
Slide 12: Financials: Germany highlights
This document has been marked as Non-Confidential FINANCIALS | GERMANY HIGHLIGHTS vs More established hotels growing towards maturity £m FY24 FY23 FY23 1 PROFIT BEFORE TAX Statutory revenue (190) (118) (62% £9m Other income (excl. rental income) 3) 0) 1,000% Operating costs (151) (110) (37)% Adjuste
Slide 13: Germany: Good progress led by our more established hotels
This document has been marked as Non-Confidential GERMANY | GOOD PROGRESS LED BY OUR MORE ESTABLISHED HOTELS RevPAR € € 60 € 58 € 56 € 55 € 53 € 54 € 52 € 51 € 50 H1 FY24 H2 FY24 FY24 Germany M&E 1 Premier Inn more established hotels 2 Premier Inn total 2 1: STR data, standard methodology basis, 3 M
Slide 14: Financials: Significant free cashflow funding growth and cash returns
This document has been marked as Non-Confidential FINANCIALS | SIGNIFICANT FREE CASHFLOW FUNDING GROWTH AND CASH RETURNS £787m £719m £57m £286m £(509)m £(49)m £(165)m £256m expansionary £253m non-expansionary £(591)m £(470)m Cashflow FY23 FY24 FY24 pre- Share Operating Operating Capex Disposals Othe
Slide 15: Financials: Freehold-backed balance sheet supports future growth
This document has been marked as Non-Confidential FINANCIALS | FREEHOLD-BACKED BALANCE SHEET SUPPORTS FUTURE GROWTH 1 STRUCTURAL ADVANTAGE MAINTAINING INVESTMENT GRADE RATING • Key benefits: THRESHOLD: 3.5x • Control over estate optimisation e.g. extensions • Hedge against property cost inflation •
Slide 16: Strategy Update
This document has been marked as Non-Confidential CARDIFF NORTH STRATEGY UPDATE DOMINIC PAUL І CHIEF EXECUTIVE
Slide 17: UK extend leadership; Germany become No.1; enhancing capabilities
This document has been marked as Non-Confidential CARDIFF NORTH UK | EXTEND OUR MARKET-LEADING POSITION GERMANY | BECOME THE NO.1 HOTEL BRAND ENHANCING CAPABILITIES | ENABLING LONG-TERM GROWTH
Slide 18: UK: Operating model underpins our market-leading position
This document has been marked as Non-Confidential UK | OPERATING MODEL UNDERPINS OUR MARKET-LEADING POSITION UNIQUE OPERATING MODEL UNRIVALLED BRAND STRENGTH 1 DIRECT DISTRIBUTION 40 Hilton Premier Inn COMMERCIAL EXCELLENCE 30 Marriott Quality 20 OPERATIONAL CONTROL Crowne Plaza Holiday Inn 10 Best
Slide 19: UK: Reduction in supply has created a significant growth opportunity
This document has been marked as Non-Confidential UK | REDUCTION IN SUPPLY HAS CREATED A SIGNIFICANT GROWTH OPPORTUNITY Total hotel supply ‘000 rooms 1 ACCELERATED 10% decline in the independent INDEPENDENT 1 715k sector between 2019 -2022 DECLINE 696k 686k 683k STRUCTURAL Supply not expected to rea
Slide 20: UK: Extending our market-leading position
This document has been marked as Non-Confidential UK | EXTENDING OUR MARKET-LEADING POSITION ACCELERATING STRONG FOCUS ON GROWTH COMMERCIAL OPERATIONAL PLAN PROGRAMME EXCELLENCE TO DRIVE PROFITABLE GROWTH, MARGINS AND RETURNS 20
Slide 21: UK: Accelerating growth plan: more rooms, better experience, higher returns
This document has been marked as Non-Confidential UK | ACCELERATING GROWTH PLAN: MORE ROOMS, BETTER EXPERIENCE, HIGHER RETURNS BY OPTIMISING OUR BRANDED UNLOCKING RESTAURANT PORTFOLIO 3,500 EXTENSION ROOMS • Convert 112 branded restaurants into hotel extensions • High occupancy hotels in high demand
Slide 22: UK: Accelerating growth plan case study: Inverness
This document has been marked as Non-Confidential UK | ACCELERATING GROWTH PLAN CASE STUDY: INVERNESS CATCHMENT PORTFOLIO STRATEGY INVERNESS WEST IMPACT INVERNESS CENTRE PROFIT BEFORE TAX RETURNS INVERNESS CENTRE RIVER NESS MILLBURN ROAD NO CHANGE NO CHANGE 17% 99 rooms, 78 rooms, integrated F&B int
Slide 23: UK: Extensions programme underpins 12,000+ room openings by FY29
This document has been marked as Non-Confidential UK | EXTENSIONS PROGRAMME UNDERPINS 12,000+ ROOM OPENINGS BY FY29 12,000+ rooms 125,000 3,500 2,000+ 97,000+ 7,000 85,000 FY24 Committed Extensions Future FY29 Additional Long-term UK estate pipeline programme pipeline net of UK estate potential pote
Slide 24: UK Commercial: Increasing choice for guests whilst driving ARR
This document has been marked as Non-Confidential UK | COMMERCIAL: INCREASING CHOICE FOR GUESTS WHILST DRIVING ARR ENHANCED EXPANDED OPTIMISE DIGITAL PLATFORM PRODUCT OFFER RATE CLASSES • Automated trading engine upgrades • Premier Plus • Enhanced room format • Flex rates offer increased flexibility
Slide 25: UK Commercial: Driving our business proposition
This document has been marked as Non-Confidential UK | COMMERCIAL: DRIVING OUR BUSINESS PROPOSITION VALUE OF BUSINESS CHANNELS FOCUS ON FURTHER GROWTH 1 BUSINESS CHANNEL ACCOMMODATION SALES BY YEAR • Combine business tools into single platform PRE-PANDEMIC £488m SINGLE B2B • Discount on most flexibl
Slide 26: UK Operations: High-quality hotels on a consistent basis
This document has been marked as Non-Confidential UK | OPERATIONS: HIGH-QUALITY HOTELS ON A CONSISTENT BASIS • Optimised F&B offering, tailored by location OPERATIONAL • Market-leading guest satisfaction scores 1 EXCELLENCE • Driving guest loyalty • Increase in operational team engagement INVESTING
Slide 27: UK extend leadership; Germany become No.1; enhancing capabilities
This document has been marked as Non-Confidential CARDIFF NORTH UK | EXTEND OUR MARKET-LEADING POSITION GERMANY | BECOME THE NO.1 HOTEL BRAND ENHANCING CAPABILITIES | ENABLING LONG-TERM GROWTH
Slide 28: Germany: Investment case remains highly attractive
This document has been marked as Non-Confidential GERMANY | INVESTMENT CASE REMAINS HIGHLY ATTRACTIVE HOTEL ROOMS SUPPLY 1 • Hotel market is 40% larger than the UK LARGE & 966k FRAGMENTED • Independent sector in long-term decline 1% MARKET 686k 11% • Highly fragmented 12% 19% 67% 45% • No clear mark
Slide 29: Germany: Becoming a business of scale: Hamburg catchment
This document has been marked as Non-Confidential GERMANY | BECOMING A BUSINESS OF SCALE: HAMBURG CATCHMENT Occupancy 75% HAMBURG CITY ALSTER ARR €99 HAMBURG 179 rooms – 2 KPIS 1 HAMBURG Opened FY22 RevPAR €75 CITY MILLERNTOR HAMBURG 120 rooms – CITY HAMMERBROOK 2 Rooms 1,085 Opened FY22 104 rooms –
Slide 30: Germany: On track to break-even on a run-rate basis in 2024
This document has been marked as Non-Confidential GERMANY | ON TRACK TO BREAK-EVEN ON A RUN-RATE BASIS IN 2024 COMMERCIAL STRATEGY OPERATING MODEL ENHANCE B2B • Launch first brand marketing campaign • Roll-out of Premier Plus rooms • Launch single platform “InnBusiness” • Refine trading engine • Exp
Slide 31: UK extend leadership; Germany become No.1; enhancing capabilities
This document has been marked as Non-Confidential CARDIFF NORTH UK | EXTEND OUR MARKET-LEADING POSITION GERMANY | BECOME THE NO.1 HOTEL BRAND ENHANCING CAPABILITIES | ENABLING LONG-TERM GROWTH
Slide 32: Efficiencies: Premier Inn's biggest cost efficiency programme
This document has been marked as Non-Confidential EFFICIENCIES | PREMIER INN’S BIGGEST COST EFFICIENCY PROGRAMME NEW £150m PROGRAMME PROCUREMENT TECHNOLOGY • New £150m three-year efficiency programme • Initiatives include: • Savings through upgraded tech stack including: • Rationalise product lines
Slide 33: Technology: Upgraded tech stack to support growth and drive efficiency
This document has been marked as Non-Confidential TECHNOLOGY | UPGRADED TECH STACK TO SUPPORT GROWTH AND DRIVE EFFICIENCY • 900+ hotels across UK & Germany successfully migrated to new system RESERVATION SYSTEM • Enhance the digital experience for our guests UPGRADE • Drive additional commercial ben
Slide 34: Force for Good: Continuing to make good progress
This document has been marked as Non-Confidential FORCE FOR GOOD | CONTINUING TO MAKE GOOD PROGRESS TARGETS FY24 PROGRESS • Supporting 1,900 operations apprenticeships • By the end of 2026, leadership community: • 45% female representation OPPORTUNITY • Increased visibility of our D&I networks • 10%
Slide 35: Capital Allocation & Outlook
This document has been marked as Non-Confidential CAPITAL ALLOCATION & OUTLOOK HEMANT PATEL І CFO
Slide 36: Capital allocation: Increased final dividend and further £150m share buy-back
This document has been marked as Non-Confidential CAPITAL ALLOCATION | INCREASED FINAL DIVIDEND AND FURTHER £150M SHARE BUY-BACK MAINTAIN INVESTMENT Upgraded investment grade rating to BBB1 GRADE METRICS CONTINUE TO INVEST IN Gross capex guidance to £550m - £600m, PROFITABLE GROWTH expected proceeds
Slide 37: Outlook FY25: Confident in maintaining momentum
This document has been marked as Non-Confidential OUTLOOK І FY25: CONFIDENT IN MAINTAINING MOMENTUM UK GERMANY (1)% +21% Total accommodation Total accommodation sales vs FY24 sales vs FY24 CURRENT TRADING1 CURRENT TRADING1 +1.2pp €57 Total accommodation More established hotels sales vs M&E2 RevPAR O
Slide 38: Outlook: Accelerating growth plan delivering increased margins and returns
This document has been marked as Non-Confidential OUTLOOK | ACCELERATING GROWTH PLAN DELIVERING INCREASED MARGINS AND RETURNS Extension rooms open +£80m to £90m SHORT-TERM IMPACT IN FY25 Incremental adjusted UK PBT Higher returning hotel rooms REMOVAL OF LOSS-MAKING BRANDED RESTAURANTS +£30m to £40m
Slide 39: Conclusion
This document has been marked as Non-Confidential DARMSTADT CITY CONCLUSION DOMINIC PAUL І CHIEF EXECUTIVE
Slide 40: Conclusion: Strategy to deliver a step change in profits, margins and returns
This document has been marked as Non-Confidential CONCLUSION | STRATEGY TO DELIVER A STEP CHANGE IN PROFITS, MARGINS AND RETURNS STRUCTURAL CLEAR UK GERMANY INCREASED STRONG SUPPLY SHIFT GROWTH PLAN ON TRACK EFFICIENCIES BALANCE SHEET SIGNIFICANT EXTEND 10 – 14% NEW FUNDING GROWTH MARKET LONG-TERM £
Slide 41: Appendices
This document has been marked as Non-Confidential APPENDICES I Additional slides p39 VI Definitions p46 VII Supplementary information p47 VIII Cautionary statement p48 Whitbread ADR programme – WTDBY Whitbread has established a sponsored Level I American Depositary Receipt (ADR) programme for which
Slide 42: Appendix I: Guidance overview
This document has been marked as Non-Confidential APPENDIX I | GUIDANCE OVERVIEW FY25 FY26 • Accommodation sales: 1% Δ vs FY24 = £16m - £17m PBT • Unaffected F&B sales: 1% Δ vs FY24 = £2.5m PBT Accelerating Growth Plan : • Net inflation: 3 - 4% (after £40m to £50m of efficiencies) • Further £100m -
Slide 43: Appendix II: Unit cost guidance
This document has been marked as Non-Confidential APPENDIX II | UNIT COST GUIDANCE FY25 FY29 UK – NEW ROOMS GERMANY – TOTAL ESTATE1 UK - EXTENSIONS • New rooms: 750 – 1,250 (100% leasehold) • New rooms: c.400 (100% leasehold) • New rooms: 3,500 • Average cost per room: • Average cost per room: • Exa
Slide 44: Appendix III: Freehold : leasehold mix
This document has been marked as Non-Confidential APPENDIX III | FREEHOLD : LEASEHOLD MIX Freehold Leasehold UK Open 56% 44% Open and committed 56% 44% Germany Open 24% 76% Open and committed 27% 73% Group Open 52% 48% Open and committed 52% 48% 44
Slide 45: Appendix IV: Premier Inn UK proven resilience in previous downturns
This document has been marked as Non-Confidential APPENDIX IV | PREMIER INN UK: PROVEN RESILIENCE IN PREVIOUS DOWNTURNS M&E SECTOR OUTPERFORMS UNIQUE OPERATING MODEL LED TO MARKET OUTPERFORMANCE 90% £70 81% 80% 78% 78% 78% 76% 76% 76% • M&E sector tends to outperform the 73% £60 69% wider hotel mark
Slide 46: Appendix V: UK returns
This document has been marked as Non-Confidential APPENDIX V | UK RETURNS PI UK ROCE COVID-19 pandemic 15.5% 13.3% 13.5% 12.9% 13.0% 13.4% 13.3% 11.2% 12.9% 12.3% 12.4% 12.4% 10.9% 1.4% 84k 85k 82k 79k 79k 76k 72k 68k 65k 59k 55k 52k 47k 42k 43k (14.4)% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 F
Slide 47: Appendix VI: Definitions
This document has been marked as Non-Confidential APPENDIX VI | DEFINITIONS Accommodation sales Premier Inn accommodation revenue excluding non-room income such as food and beverage Profit before adjusting items, interest, tax, depreciation of property, plant and equipment and right-of-use assets, a
Slide 48: Appendix VII: Supplementary information
This document has been marked as Non-Confidential APPENDIX VII | 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: A. H
Slide 49: Appendix VIII: Cautionary statement
This document has been marked as Non-Confidential APPENDIX VIII | CAUTIONARY STATEMENT Nothing contained in this presentation is intended to constitute an offer, invitation or inducement to engage in an investment activity for the purposes of the prohibition on financial promotions under the Financi