Slide 1: Full Year Presentation to holders of our bonds
18 May 2022 Full Year Presentation to holders of our £450m 3.375% bonds due 2025 £300m 2.375% Green bonds due 2027 £250m 3.000% Green bonds due 2031
Slide 2: Contents
Contents Full year highlights Hemant Patel p3 Full year to 3 March 2022 Iain Strachan p13 Force for Good – Green Bond Rosana Elias p18 Update Conclusion and Q&A Hemant Patel p23 2
Slide 3: Full Year Highlights
FULL YEAR HIGHLIGHTS 3 3 3
Slide 4: Full year highlights and outlook
Full year highlights and outlook • Continued hotel market outperformance in the UK driven by our ‘Investing to win’ commercial strategy, our strong brand, scale, direct distribution and the strong appeal of the Premier Inn customer offering • Strong hotel trading in the UK, exceeding pre-pandemic le
Slide 5: Strong recovery: returning to profitability
Strong recovery: returning to profitability Commercial initiatives and strong appeal of Premier Inn’s customer offering driving recovery as Government restrictions relaxed Total sales £2,072m £1,703m £589m FY20 FY21 FY22 Statutory profit before tax £280m £58m FY20 FY21 FY22 £(1,007)m Restrictions ea
Slide 6: Premier Inn UK strong trading
Premier Inn UK strong trading Accommodation sales ahead of pre-COVID levels H1: Certain restrictions Dec - Jan: Feb - Apr: on hotel and Increased restrictions in parts of the UK due to Omicron Restrictions lifted restaurant visits variant Occupancy Premier Inn UK 130% Accommodation sales recovered v
Slide 7: Premier Inn UK: continued market outperformance
Premier Inn UK: continued market outperformance Premier Inn’s strong brand, scale and direct distribution helping maintain material outperformance of the M&E market… Total sales outperformance vs. the M&E hotel market PI outperformance1 vs M&E 12.5% 13.3% 17.1% 19.0% 20.3% 16.5% 19.4% 28.3% 3 4 H1 S
Slide 8: Germany: Encouraging trading in a challenging market
Germany: Encouraging trading in a challenging market Greater level of restrictions H1: Mar - Apr: Certain restrictions Oct - Nov: Dec - Feb: Restrictions easing and on hotel and Increased restrictions due to Delta variant Further restrictions due to Omicron variant lifted in April restaurant visits
Slide 9: Broad based recovery into FY23
Broad based recovery into FY23 Demand recovering across all customer groups Very strong performance in the UK Regions, recovery in London Premier Inn accommodation sales versus FY20 Regions 31.2% Leisure Ahead of pre-COVID levels 19.9% 10.8% (0.2)% 1 FY21 Q1 Q2 Q3 Q4 Q1 to date Business tradespeople
Slide 10: Multi-year UK growth opportunity
Multi-year UK growth opportunity CLEAR ROUTE TO 110k ROOMS ADDING 2-3k ROOMS EVERY YEAR New hotels in prime locations, with improved operational Equates to >33% UK estate growth opportunity efficiency and operating leverage MANCHESTER PICCADILLY THURSO MANCHESTER PICCADILLY LONDON SOHO, BERWICK ST S
Slide 11: Germany: A compelling proposition in a highly attractive market
Germany: A compelling proposition in a highly attractive market A HIGHLY ATTRACTIVE MARKET – OPPORTUNITY TO REPLICATE UK SUCCESS Highly fragmented Significant opportunity Greater demand for Pre-COVID budget Structural barriers to Market is 40% larger market: 72% to acquire assets with short-stay dom
Slide 12: Long-term value creation: Germany
Long-term value creation: Germany BUILDING A NATIONAL NETWORK RAPID ESTATE GROWTH Open sites Committed sites 24k 21k 18k 18k 16k 16k 15k 14k • 31 hotels added since 6k February 2020 • 37 operational hotels • 41 pipeline hotels, 3 added so far in 2022 Open Open & committed A platform to outperform an
Slide 13: Full Year to 3 March 2022
FULL YEAR TO 3 MARCH 2022 13 13 13
Slide 14: Financial highlights: Return to profitability
Financial highlights: Return to profitability £m FY22 ¹ FY21 FY20 • FY22 performance reflects the strong recovery in sales post Statutory revenue 1,703.4 589.4 2,071.5 COVID-19 restrictions and estate growth in the UK and Germany, driving statutory revenues 189% ahead of FY21 Adjusted revenue 1,703.
Slide 15: Continued market outperformance in the UK; rapid estate growth in Germany
Continued market outperformance in the UK; rapid estate growth in Germany Premier Inn UK Premier Inn Germany £m FY22 FY21 FY20 £m FY22 FY21 FY20 Statutory revenue 1,668.2 577.4 2,050.3 Statutory revenue 35.2 11.5 11.8 Other income (excl. rental income) 70.1 142.5 13.6 Other income (excl. rental inco
Slide 16: FY22 Cashflow: Strong trading resulting in operating cash inflow
FY22 Cashflow: Strong trading in the year resulting in operating cash inflow £m H1: £220.4m US PPs repaid H2: £83.5m US PPs repaid ¹ H1 FY22: £(113.7)m outflow H2 FY22: £ (3.2)m outflow Benefit of Government support: UK: £126.5m Germany: £44.3m Net (debt) / cash movement Available liquidity £m £m Ne
Slide 17: Strong balance sheet a reflection of continued capital discipline
Strong balance sheet a reflection of continued capital discipline RETURNING TO INVESTMENT GRADE METRICS ASSET BACKED BALANCE SHEET Return to FFO investment grade leverage in FY23 • Property estate last valued in 2018: • Individual sale and leaseback basis 5.0x • Yield range: 4.5% - 5.0% 4.0x Investm
Slide 18: Force for Good - Green Bond Update
FORCE FOR GOOD - GREEN BOND UPDATE 18 18 18
Slide 19: Green Bond Update – FY22
Green Bond Update – FY22 • £404m of our total £550m Green Bonds has been allocated against the Eligible projects in our Green Bond Framework (£146m remaining to allocate) • This Use of Proceeds allocation has been independently assured to the ISAE3000 standard • Eligible green projects aligned to Un
Slide 20: Use of proceeds allocation against framework – 73% allocated
Use of proceeds allocation against framework – 73% allocated 20
Slide 21: A Force for Good: Our strategy and targets
A Force for Good: Our strategy and targets Being a Force for Good in all we do supports our vision of enabling people to live and work well TARGETS OPPORTUNITY COMMUNITY RESPONSIBILITY Meaningful No barriers to entry contributions to the Operating in a way 80% Scope 1 & 2 50% Scope 3 Reduce food Eli
Slide 22: Industry-leading sustainability and responsibility programme
Industry-leading sustainability and responsibility programme Key achievements in FY22 Our long-term commitments Committed to SBTi for net zero Achieved RSPO Chain of Custody Rated Top Employer for the 12th carbon target by 2040 certification for sustainable palm consecutive year oil CARBON NET ZERO
Slide 23: Conclusion and Q&A
CONCLUSION AND Q&A 23 23 23
Slide 24: Well positioned for long-term value creation
Well positioned for long-term value creation FOCUS ON OUR STRENGTHS TO ENHANCE CAPABILITY TO 1 GROW AND INNOVATE IN THE UK 2 GROW IN GERMANY 3 SUPPORT LONG-TERM GROWTH UK Germany UK + Germany ENHANCED STRUCTURAL OPPORTUNITIES BEST-IN-CLASS OPERATIONS Market supply contraction accelerating PI market
Slide 25: Credit highlights
Credit highlights Decisive and effective actions taken to mitigate business and financial 1 Largest hotel operator in the UK with the strongest brand 7 disruption from COVID-19 and protect stakeholders, along with longstanding proven ability to manage costs through a cycle Vertically integrated mode
Slide 26: Q&A
Q&A 26 26 26
Slide 27: Cautionary statement
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 presentation avai