Slide 1: FY25 Interim Results
FY25 INTERIM RESULTS This document has been labelled as Non-Confidential 16 OCTOBER 2024
Slide 2: Contents
This document has been labelled as Non-Confidential CONTENTS HIGHLIGHTS Dominic Paul FINANCIAL REVIEW & CAPITAL ALLOCATION Hemant Patel STRATEGIC UPDATE Dominic Paul FIVE-YEAR PLAN & CONCLUSION Dominic Paul CARDIFF NORTH 2
Slide 3: Highlights
This document has been labelled as Non-Confidential MUNICH CITY HIGHLIGHTS DOMINIC PAUL І CHIEF EXECUTIVE
Slide 4: H1 FY25: Revenue flat despite AGP investment and slightly softer UK demand
This document has been labelled as Non-Confidential H1 FY25 І REVENUE FLAT DESPITE AGP INVESTMENT AND SLIGHTLY SOFTER UK DEMAND REVENUE & PROFIT MARGINS & ROCE CASHFLOW & RETURNS REVENUE UK PRE-TAX MARGINS EBITDAR £1.6bn 0% +45% 24.6% (290)bps +30bps £611m (3)% +43% H1 FY25 VS H1 FY24 VS H1 FY20 H1
Slide 5: Outlook: Executing at pace to deliver for our guests during H2 FY25
This document has been labelled as Non-Confidential OUTLOOK | EXECUTING AT PACE TO DELIVER FOR OUR GUESTS DURING H2 FY25 EXTENDING BECOMING ENABLING OUR UK MARKET- NO.1 LONG-TERM LEADING POSITION IN GERMANY GROWTH CURRENT TRADING: CURRENT TRADING: INCREASED ACCOM SALES TOTAL REVPAR COST EFFICIENCIES
Slide 6: Five-year plan: Increased confidence in the outlook
This document has been labelled as Non-Confidential FIVE-YEAR PLAN | INCREASED CONFIDENCE IN THE OUTLOOK UK GERMANY LONG-TERM GROWTH £50m 98,000 20,000 EFFICIENCIES OPEN ROOMS OPEN ROOMS PER ANNUM: FY26 TO FY30 +£120m +£100m +£80m £500m PBT1 PBT1 PBT2 AVERAGE NETWORK ACCELERATING MATURING BRAND ANNU
Slide 7: Five-year plan: >£2bn for shareholder returns and additional growth
This document has been labelled as Non-Confidential FIVE-YEAR PLAN | >£2BN FOR SHAREHOLDER RETURNS AND ADDITIONAL GROWTH UK NETWORK EXPANSION GENERATING ACCELERATING DELIVERING MORE THAN GROWTH AT LEAST PLAN £500m SUBSTANTIAL £2bn £300m OPERATING ANNUAL NET CAPEX TO DELIVER FREE CASH FLOW GERMANY FI
Slide 8: Financial Review & Capital Allocation
This document has been labelled as Non-Confidential CARDIFF NORTH FINANCIAL REVIEW & CAPITAL ALLOCATION HEMANT PATEL І CFO
Slide 9: Financials: Group Highlights
This document has been labelled as Non-Confidential FINANCIALS | GROUP HIGHLIGHTS H1 H1 vs H1 • Revenues in line with last year: £m FY25 FY24 FY24 • UK behind last year due to slightly softer Statutory revenue (1,570) (1,574) 0% demand and AGP • Strong growth in Germany Operating costs (959) (949) (
Slide 10: Financials: UK Highlights
This document has been labelled as Non-Confidential FINANCIALS | UK HIGHLIGHTS H1 H1 vs H1 £m FY25 FY24 FY24 Statutory revenue ([x]1,455) 1,479) (2)% • Accommodation sales in line with last year due to estate growth offsetting slightly softer Operating costs (856) (852) (1)% UK market Adjusted EBITD
Slide 11: UK: Maintaining post-pandemic growth despite slightly softer market demand
This document has been labelled as Non-Confidential UK | MAINTAINING POST-PANDEMIC GROWTH DESPITE SLIGHTLY SOFTER MARKET DEMAND OCCUPANCY ARR REVPAR ACCOM SALES £0.6bn 84.3% £90.53 £76.31 83.1% £84.16 £1.1bn 81.9% £77.59 £63.54 £69.93 £0.5bn Q1 Q2 H1 Q1 Q2 H1 Q1 Q2 H1 Q1 Q2 H1 FY25 FY25 FY25 FY25 FY
Slide 12: UK: Sustaining RevPAR premium, accommodation sales slightly ahead
This document has been labelled as Non-Confidential UK | SUSTAINING REVPAR PREMIUM, ACCOMMODATION SALES SLIGHTLY AHEAD £6.29 £5.85 £5.44 PI RevPAR premium1 vs M&E Q1 FY25 Q2 FY25 H1 FY25 PI Accom sales performance1 +0.3pp +0.1pp +0.2pp vs M&E PI Occupancy performance1 (1.1)pp (1.5)pp (1.3)pp vs M&E
Slide 13: Financials: Germany Highlights
This document has been labelled as Non-Confidential FINANCIALS | GERMANY HIGHLIGHTS H1 H1 vs H1 vs H1 More established hotels progressing £m FY25 FY24 FY24 FY241 towards maturity Statutory revenue (115) 95) 21% 23% PROFIT BEFORE TAX 2 Other income (excl. rental income) -) 3) n/a) n/a) £10m Operating
Slide 14: Germany: Continued progress versus the M&E market
This document has been labelled as Non-Confidential GERMANY | CONTINUED PROGRESS VERSUS THE M&E MARKET RevPAR € and RevPAR growth versus H1 FY24 €72 €67 €61 +10% €66 €65 €61 +12% €61 €56 +10% €57 +7% +14% +7% +14% +15% Q1 FY25 Q2 FY25 H1 FY25 1: STR data, standard methodology basis, 1 March 2024 to
Slide 15: Financials: Cashflow funds growth and shareholder returns
This document has been labelled as Non-Confidential FINANCIALS | CASHFLOW FUNDS GROWTH AND SHAREHOLDER RETURNS £483m £411m £44m £206m £(199)m £(50)m £81m expansionary £118m non-expansionary £(115)m £(163)m £(72)m Cashflow H1 FY24 H1 FY25 H1 FY25 pre- Share Operating Operating Capex Disposals Other1
Slide 16: Financials: Asset-backed balance sheet supporting future growth
This document has been labelled as Non-Confidential FINANCIALS | ASSET-BACKED BALANCE SHEET SUPPORTING FUTURE GROWTH VALUABLE FREEHOLD PORTFOLIO UNLOCKING GROWTH OPPORTUNITIES OPPORTUNITY TO RECYCLE CAPITAL Property portfolio last valued in 2018: PADDINGTON OXFORD £4.9bn - £5.8bn ✓ Control over esta
Slide 17: Outlook: Current trading and FY25 guidance
This document has been labelled as Non-Confidential OUTLOOK І CURRENT TRADING AND FY25 GUIDANCE UK GERMANY • Positive forward booked position • On track to breakeven on a PBT run-rate basis • Total accommodation sales (1)% vs FY24 • Total accommodation sales +26% vs FY24 CURRENT TRADING1 • 1.0pp tot
Slide 18: Capital Allocation: Investing in growth and delivering shareholder returns
This document has been labelled as Non-Confidential CAPITAL ALLOCATION | INVESTING IN GROWTH AND DELIVERING SHAREHOLDER RETURNS MAINTAIN INVESTMENT Maintaining investment grade rating with leverage1 below 3.5x GRADE METRICS CONTINUE TO INVEST IN Gross capex of £550m-£600m, less property transactions
Slide 19: Strategic Update
This document has been labelled as Non-Confidential NEW ID5 FORMAT STRATEGIC UPDATE DOMINIC PAUL І CHIEF EXECUTIVE
Slide 20: Overview: Executing against our strategic priorities
This document has been labelled as Non-Confidential OVERVIEW | EXECUTING AGAINST OUR STRATEGIC PRIORITIES EXTENDING UK BECOMING ENABLING MARKET-LEADING NO.1 LONG-TERM POSITION IN GERMANY GROWTH TO DELIVER A STEP CHANGE IN PROFITS, MARGINS AND RETURNS 20
Slide 21: UK: Extending our market-leading position
This document has been labelled as Non-Confidential MANCHESTER PICCADILLY UK EXTENDING OUR MARKET-LEADING POSITION GERMANY BECOMING NO.1 HOTEL BRAND ENHANCING CAPABILITIES ENABLING LONG-TERM GROWTH
Slide 22: UK: Taking advantage of the structural shift in UK supply
UK UK This document has been UK labelled as Non-Confidential GERMANY EFFICIENCIES NETWORK EXPANSION ACCELERATING GROWTH COMMERCIAL PROGRAMME CONTINUING MOMENTUM INCREASED PROGRAMME UK | TAKING ADVANTAGE OF THE STRUCTURAL SHIFT IN UK SUPPLY MARKET OPPORTUNITY1 FIVE-YEAR PLAN: 98,000+ OPEN ROOMS BY FY
Slide 23: UK: AGP: Increasing margins and returns whilst enhancing the guest experience
UK UK This document has been UK labelled as Non-Confidential GERMANY EFFICIENCIES NETWORK EXPANSION ACCELERATING GROWTH COMMERCIAL PROGRAMME CONTINUING MOMENTUM INCREASED PROGRAMME UK | AGP: INCREASING MARGINS AND RETURNS WHILST ENHANCING THE GUEST EXPERIENCE SOUTH SHIELDS • Converting 112 branded r
Slide 24: UK Commercial: Broadening reach to grow customer demand
UK UK This document has been UK labelled as Non-Confidential GERMANY EFFICIENCIES NETWORK EXPANSION ACCELERATING GROWTH COMMERCIAL PROGRAMME CONTINUING MOMENTUM INCREASED PROGRAMME UK | COMMERCIAL: BROADENING REACH TO GROW CUSTOMER DEMAND DRIVING BRAND CONSIDERATION EXPANDING DIGITAL AVAILABILITY GR
Slide 25: UK Commercial: Leveraging technology to drive revenue growth
UK UK This document has been UK labelled as Non-Confidential GERMANY EFFICIENCIES NETWORK EXPANSION ACCELERATING GROWTH COMMERCIAL PROGRAMME CONTINUING MOMENTUM INCREASED PROGRAMME UK | COMMERCIAL: LEVERAGING TECHNOLOGY TO DRIVE REVENUE GROWTH CANARY WHARF • Ancillary revenue opportunities TECH- • e
Slide 26: UK Proposition: Extending our market-leading guest offer
UK UK This document has been UK labelled as Non-Confidential GERMANY EFFICIENCIES NETWORK EXPANSION ACCELERATING GROWTH COMMERCIAL PROGRAMME CONTINUING MOMENTUM INCREASED PROGRAMME UK | PROPOSITION: EXTENDING OUR MARKET-LEADING GUEST OFFER HIGH-QUALITY PROPOSITION UNDERPINS POSITION AS UK’S NO.1 HOT
Slide 27: Germany: Becoming No.1 hotel brand
This document has been labelled as Non-Confidential MANCHESTER PICCADILLY UK EXTENDING OUR MARKET-LEADING POSITION GERMANY BECOMING NO.1 HOTEL BRAND ENHANCING CAPABILITIES ENABLING LONG-TERM GROWTH
Slide 28: Germany: Significant growth opportunity
UK UK This document has been UK labelled as Non-Confidential GERMANY EFFICIENCIES NETWORK EXPANSION ACCELERATING GROWTH COMMERCIAL PROGRAMME CONTINUING MOMENTUM INCREASED PROGRAMME GERMANY | SIGNIFICANT GROWTH OPPORTUNITY INVESTMENT CASE REMAINS HIGHLY ATTRACTIVE FASTEST GROWING HOTEL BRAND IN GERMA
Slide 29: Germany: On track to reach breakeven on a run-rate basis in 2024
UK UK This document has been UK labelled as Non-Confidential GERMANY EFFICIENCIES NETWORK EXPANSION ACCELERATING GROWTH COMMERCIAL PROGRAMME CONTINUING MOMENTUM INCREASED PROGRAMME GERMANY | ON TRACK TO REACH BREAKEVEN ON A RUN-RATE BASIS IN 2024 BRAND COMMERCIAL OPERATIONS • First marketing campaig
Slide 30: Germany: £70m of profit by FY30 and continuing maturity thereafter
UK UK This document has been UK labelled as Non-Confidential GERMANY EFFICIENCIES NETWORK EXPANSION ACCELERATING GROWTH COMMERCIAL PROGRAMME CONTINUING MOMENTUM INCREASED PROGRAMME GERMANY | £70M OF PROFIT BY FY30 AND CONTINUING MATURITY THEREAFTER Germany adjusted profit before tax NETWORK EXPANSIO
Slide 31: Enabling long-term growth
This document has been labelled as Non-Confidential MANCHESTER PICCADILLY UK EXTENDING OUR MARKET-LEADING POSITION GERMANY BECOMING NO.1 HOTEL BRAND ENHANCING CAPABILITIES ENABLING LONG-TERM GROWTH
Slide 32: Force for Good: Enacting positive change
This document has been labelled as Non-Confidential FORCE FOR GOOD | ENACTING POSITIVE CHANGE OPPORTUNITY COMMUNITY RESPONSIBILITY Expanded Thrive programme £1.5m raised for GOSH, exceeding Six sites now fully powered by supporting SEN students into £25m since 2012 renewable energy employment Highes
Slide 33: Efficiencies: Increased and extended programme to FY30
UK UK This document has been UK labelled as Non-Confidential GERMANY EFFICIENCIES NETWORK EXPANSION ACCELERATING GROWTH COMMERCIAL PROGRAMME CONTINUING MOMENTUM INCREASED PROGRAMME EFFICIENCIES | INCREASED AND EXTENDED PROGRAMME TO FY30 ADDITIONAL £50M PER ANNUM TO FY301 ACROSS ALL AREAS OF OUR BUSI
Slide 34: Five-Year Plan & Conclusion
This document has been labelled as Non-Confidential PADDINGTON FIVE-YEAR PLAN & CONCLUSION DOMINIC PAUL І CHIEF EXECUTIVE
Slide 35: Five-year plan: At least £300m incremental Group PBT
This document has been labelled as Non-Confidential FIVE-YEAR PLAN | AT LEAST £300M INCREMENTAL GROUP PBT EFFICIENCIES AND UK LFL SALES 3 +£80m 1 GROWTH >£300m +£100m UK COST INFLATION 20,000 open +£120m Germany rooms +3,500 UK rooms £70m Germany £50m efficiencies and PBT in FY301 per annum2 more ef
Slide 36: Five-year plan: >£2bn for shareholder returns and additional growth
This document has been labelled as Non-Confidential FIVE-YEAR PLAN | >£2BN FOR SHAREHOLDER RETURNS AND ADDITIONAL GROWTH UK NETWORK EXPANSION GENERATING ACCELERATING DELIVERING MORE THAN GROWTH AT LEAST PLAN £500m SUBSTANTIAL £2bn £300m OPERATING ANNUAL NET CAPEX TO DELIVER FREE CASH FLOW GERMANY FI
Slide 37: Executing at pace in H2 FY25
This document has been labelled as Non-Confidential LUBECK EXECUTING AT PACE IN H2 FY25 EXTENDING UK MARKET-LEADING POSITION GERMANY ON TRACK TO BECOME NO.1 HOTEL BRAND INCREASED AND EXTENDED COST EFFICIENCY PROGRAMME FIVE-YEAR PLAN DELIVERS A STEP CHANGE IN PROFITS, MARGINS AND RETURNS
Slide 38: Appendices
This document has been labelled as Non-Confidential APPENDICES I Additional slides p39 VII Definitions p45 VIII Supplementary information p46 VIIII Cautionary statement p47 Whitbread ADR programme – WTDBY Whitbread has established a sponsored Level I American Depositary Receipt (ADR) programme for w
Slide 39: Appendix I: Unique model positioned to deliver long-term, profitable growth
This document has been labelled as Non-Confidential APPENDIX I | UNIQUE MODEL POSITIONED TO DELIVER LONG-TERM, PROFITABLE GROWTH UK VERTICALLY INTEGRATED OPERATING MODEL GERMANY LOW-COST DISTRIBUTION COMMERCIAL PROGRAMME OPERATIONAL CONTROL 92,000 17,000 ROOMS OPEN AND ROOMS OPEN AND COMMITTED ASSET
Slide 40: Appendix II: Guidance overview
This document has been labelled as Non-Confidential APPENDIX II | 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: 2 - 3% (after £60m of efficiencies) • Further £100m - £120m
Slide 41: Appendix III: Unit cost guidance
This document has been labelled as Non-Confidential APPENDIX III | UNIT COST GUIDANCE FY25 FY29 (VERSUS FY24) 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 cos
Slide 42: Appendix IV: H1 FY25 Freehold : Leasehold mix
This document has been labelled as Non-Confidential APPENDIX IV | H1 FY25 FREEHOLD : LEASEHOLD MIX Freehold Leasehold UK Open 56% 44% Open and committed 57% 43% Germany Open 24% 76% Open and committed 28% 72% Group Open 52% 48% Open and committed 52% 48% 42
Slide 43: Appendix V: Premier Inn UK: Proven resilience in previous downturns
This document has been labelled as Non-Confidential APPENDIX V | 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 mar
Slide 44: Appendix VI: UK returns
This document has been labelled as Non-Confidential APPENDIX VI | UK RETURNS PI UK ROCE COVID-19 15.5% pandemic 14.0% 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 86k 79k 79k 82k 76k 72k 65k 68k 59k 52k 55k 47k (14.4)% 42k 43k FY10 FY11 FY12 FY13 FY14 FY15 FY1
Slide 45: Appendix VII: Definitions
This document has been labelled as Non-Confidential APPENDIX VII | 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
Slide 46: Appendix VIII: Supplementary information
This document has been labelled as Non-Confidential APPENDIX VIII | 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
Slide 47: Appendix VIIII: Cautionary statement
This document has been labelled as Non-Confidential APPENDIX VIIII | 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 Fina