Slide 1: FY21 Interim Results
FY21 Interim Results 27 October 2020 FY21 INTERIM RESULTS | OCTOBER 2020
Slide 2: Contents
Contents Performance update Alison Brittain p3 Financial review Nicholas Cadbury p10 Driving long-term value Alison Brittain p16 Appendices p28 2 FY21 INTERIM RESULTS | OCTOBER 2020
Slide 3: Overview
Overview • H1 performance driven by closure of our business for a large part of the period H1 FY21 • Outperforming the UK market post reopening and gaining market share • 21 hotels now open in Germany and pipeline expanding • Comprehensive response to COVID-19; protecting colleagues, guests and the
Slide 4: React and protect | Decisive response to COVID-19
React and protect | Decisive response to COVID-19 Rapid response in March and April, with protective actions ongoing Protecting customers and staff Acting responsibly • Rapid closure of sites in March. Reopened in July in the UK, • 39 hotels kept open during lockdown May in Germany • >150 tonnes of
Slide 5: Restore | Winning market share in the UK
Restore | Winning market share in the UK Restore strategy enabled a rapid and safe reopening… …driving market share gains Accommodation sales growth outperformance vs M&E market1 1 Leverage strong and trusted brand 6.0pp 4.3pp Direct distribution model: extending reach through 2 direct marketing Aug
Slide 6: Restore | Growth in German network from 6 to 21 open hotels
Restore | Growth in German network from 6 to 21 open hotels Refurbished and opened 13 hotels during lockdown Strong operational performance in a testing environment • Entered lockdown with 6 open hotels; utilised lockdown period • Newly opened hotels boast brand new restaurants, to rebrand, refurbis
Slide 7: A force for good | Operating responsibly and sustainably
A force for good | Operating responsibly and sustainably Being a Force For Good in all we do supports our vision of enabling people to live and work well Opportunity Community Responsibility A place where everyone can reach their Making meaningful contributions to the potential communities we serve
Slide 8: A force for good | Playing our part during the pandemic
A force for good | Playing our part during the pandemic • 39 hotels kept open and available for NHS staff and key workers • Passed fleet delivery capacity to supermarkets to help feed the nation • Employee fundraising for the • 335,000 meals donated to Fare Share distributed to those NHS in need • £
Slide 9: Summary | Proven strategy is highly relevant post COVID-19
Summary | Proven strategy is highly relevant post COVID-19 ✓ Ownership and operating model is a competitive advantage Grow and innovate in 1 core UK markets ✓ Number one brand and winning customer proposition Market share gains ✓ Growth through existing pipeline and optimisation ✓ Replicate historic
Slide 10: Financial Review | Nicholas Cadbury – CFO
FINANCIAL REVIEW | Nicholas Cadbury – CFO 10 10 FY21 INTERIM RESULTS FY21 INTERIM | OCTOBER RESULTS 2020 | OCTOBER 2020
Slide 11: Financial highlights | Performance reflects lockdown closures
Financial highlights | Performance reflects lockdown closures • Performance in H1 reflects the closure of the vast majority of our £’m H1 FY21 H1 FY20 business for a large part of the period Statutory revenue 250.8 1,084.0 • Hotels and restaurants were temporarily closed at the end of March, reopeni
Slide 12: Cash | Actions taken to preserve cash
Cash | Actions taken to preserve cash H1 cash outflow of £462m is c.£150m better than guidance £m IFRS16 Net cashflow Change in Net turnover interest & Proceeds on excl Rights Adjusted working Capex: Interest (ex rent & rental lease Corporate Non-Cash Discretionary Capex: acquisition & Issue & debt
Slide 13: Balance sheet | Strong balance sheet provides financial flexibility
Balance sheet | Strong balance sheet provides financial flexibility Substantial liquidity with diverse & flexible options Covenant waivers provide flexibility in the medium-term As at 27 August 2020 Total Utilised1 Maturity (at hedged rates) facilities1 • Covenant waivers obtained on Revolving credi
Slide 14: Current trading | Continued market outperformance
Current trading | Continued market outperformance Outperformance is accelerating versus the M&E market… Market outperformance in London and Regions1 Accommodation sales growth outperformance vs M&E market1 M&E Performance vs 6.0pp London Premier Inn market1 M&E market1 4.3pp Occupancy 34.4% 36.6% (2
Slide 15: FY21 | Sensitivity
FY21 | Sensitivity FY21 sensitivity largely unchanged. Limited near-term visibility Unchanged from 21 May 2020: • 1% fall in total sales (hotel and restaurant) has an adverse impact of £18m on PBT (before the benefits of business rates holiday and the Job Retention Scheme, listed below) Sales and •
Slide 16: Driving Long-Term Value | Alison Brittain – CEO
DRIVING LONG-TERM VALUE | Alison Brittain– CEO 16 16 FY21 INTERIM RESULTS FY21 INTERIM | OCTOBER RESULTS 2020 | OCTOBER 2020
Slide 17: UK | Market share gains
UK | Market share gains Best-placed to capitalise on the recovery opportunity and reinforce our UK: Market market leading position share gains Enhanced structural opportunities • Market supply contraction accelerating PI market share gains and growth ✓ Budget model is structurally advantaged • Budge
Slide 18: Enhanced structural opportunities | Accelerate market share gains
Enhanced structural opportunities | Accelerate market share gains Long-term migration from independents to budget branded hotels in UK 678k rooms 713k rooms • Clear signs of structural distress 6% amongst independent and budget 11% branded competitors in the UK 13% 17% Budget branded • Weaker operat
Slide 19: Budget model | Higher growth and more resilient in downturns
Budget model | Higher growth and more resilient in downturns Historic : Branded budget sector has grown faster than the rest of the market in every year since 2009 14.0% 15% UK total booked room % annual growth1 9.0% Branded Budget 4.0% Other branded and 0% independents -1.0% -6.0% (6)% 2008 2009 20
Slide 20: Broad customer reach | Diversified customer mix is resilient
Broad customer reach | Diversified customer mix is resilient Regions vs London Domestic vs Inbound Business vs Leisure 29% 10% 17% 37% 44% 50% 50% 56% 83% 63% 90% 71% PI London PI Inbound PI Business PI Regions PI Domestic PI Leisure Market London Market Inbound Market Business Market Regions Market
Slide 21: Brand | Premier Inn is the strongest hotel brand in the UK
Brand | Premier Inn is the strongest hotel brand in the UK Standout customer brand scores in the market BrandIndex1 BrandIndex2 35 Hilton Variance 2020 30 2019 Metric 1st to 2nd 2018 26.7 Premie… Satisfaction 40.6 1st 17.6 25 Marriott PI - 2018-19 Quality score Impression 40.8 1st 11.7 20 Improvemen
Slide 22: Operating model | Competitive advantage in a changing market
Operating model | Competitive advantage in a changing market Flexible model enables a rapid response to returning demand and is a long-term sustainable competitive advantage advantage • UK’s strongest hotel brand • Largest UK network strength Brand Scale • Market leading consumer metrics • Economies
Slide 23: Germany | A compelling opportunity to replicate PI's UK success
Germany | A compelling opportunity to replicate PI’s UK success Germany: Relevance of UK characteristics to drive growth in Germany: Growth Enhanced structural opportunities • Market supply contraction accelerating PI market share gains and growth ✓ Budget model is structurally advantaged • Budget h
Slide 24: Germany | Ambition to be the no.1 budget hotel operator
Germany | Ambition to be the no.1 budget hotel operator High levels of 53 hotels now Attractive market Clear indications Ambition to be domestic open and and of competitor the no.1 budget business and committed and demographics constraints hotel operator leisure travel expanding Site • Focus on majo
Slide 25: Germany | Enhanced structural opportunities
Germany | Enhanced structural opportunities Long-term migration from independents to budget branded hotels in Germany 940k rooms 992k rooms 6% 9% Budget branded • Germany potential network c.60k 14% • Currently c.10k including pipeline 19% Other branded • Clear signs of structural distress amongst i
Slide 26: Germany | Rapidly building a national network
Germany | Rapidly building a national network Already secured a 53 hotel network… …and now expanding to up to 68 hotels • Announced signing of leases for up to 15 hotels currently operated under the Centro, Ninetynine and Fourside brands; 8 open and 7 pipeline, totalling over 2,000 rooms 2 4 • Locat
Slide 27: Summary | Compelling platform and strategy for outperformance
Summary | Compelling platform and strategy for outperformance Uniquely positioned to grow market share through enhanced structural opportunities ✓ Ownership and operating model is a competitive advantage Grow and innovate in 1 core UK markets ✓ Number one brand and winning customer proposition Marke
Slide 28: Appendices
APPENDICES I Definitions p29 II Supplementary information p30 III Cautionary statement p31 Whitbread ADR programme – WTDBY Whitbread has established a sponsored Level I American Depositary Receipt (ADR) programme for which Deutsche Bank perform the role of depositary bank. The Level I programme trad
Slide 29: Appendix I | Definitions
Appendix I | Definitions Accommodation sales Premier Inn accommodation revenue excluding non-room income such as food and beverage Adjusted basic EPS Adjusted profit attributable to the parent shareholders divided by the basic weighted average number of ordinary shares Adjusted EBITDA Profit before
Slide 30: Appendix II | Supplementary information
Appendix II | 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. Hotel estate B. Financial summary, KPIs & segment in
Slide 31: Appendix III | Cautionary statement
Appendix III | 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 Financial Services and Markets Act 2000. In making this pr