Whitbread Plc · LSE:WTB
Whitbread — Debt Investor Presentation (May 2023)
19 slides from Whitbread's debt investor presentation, May 30, 2023
Slide 1: FY23 Results – Bondholders
This document has been marked as Non-Confidential FY23 RESULTS – Bondholders 30 MAY 2023
Slide 2: Contents
This document has been marked as Non-Confidential CONTENTS FY23 PERFORMANCE AND OUTLOOK Hemant Patel 3 FINANCIAL REVIEW Iain Strachan 11 GREEN BOND UPDATE Iain Strachan 15 CONCLUSION AND Q&A Hemant Patel 18 2
Slide 3: FY23 Performance and Outlook
This document has been marked as Non-Confidential FY23 PERFORMANCE AND OUTLOOK HEMANT PATEL - CFO
Slide 4: Outlook: operating model underpins our confidence in FY24
This document has been marked as Non-Confidential OUTLOOK | OPERATING MODEL UNDERPINS OUR CONFIDENCE IN FY24 EXCELLENT RESULTS STRONG CURRENT TRADING SHAREHOLDER RETURNS Occupancy and ARR growth UK accommodation sales over 15% 1 £546m capex invested in FY23 driving UK RevPAR +27% ahead of FY23 3 18
Slide 5: UK: accommodation sales driven by occupancy and ARR
This document has been marked as Non-Confidential UK | ACCOMMODATION SALES DRIVEN BY OCCUPANCY AND ARR Premier Inn UK – KPIs vs pre-pandemic (FY20) Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 +8pp +5pp +4pp +8pp +7pp Accommodation Occupancy ARR RevPAR sales 5
Slide 6: Germany: established hotels trading in line with the market
This document has been marked as Non-Confidential GERMANY | ESTABLISHED HOTELS TRADING IN LINE WITH THE MARKET RevPAR € 1 2 HOTELS TRADED RESTRICTION FREE IN Q2 FY23 ONWARDS 1: STR data, standard methodology basis, 4 March 2022 to 2 March 2023, M&E includes Premier Inn 2: FY23: Premier Inn data: tra
Slide 7: UK: further UK expansion opportunity
This document has been marked as Non-Confidential UK | FURTHER UK EXPANSION OPPORTUNITY 125,000 ROOM POTENTIAL ESTATE OPTIMISATION DRIVES CATCHMENT REVENUE Network potential Accommodation Current network 125,000 sales +c.27%1 + pipeline rooms Peterborough North c.91,000 Current network rooms Retaine
Slide 8: Germany: established hotels underpin confidence in our model
This document has been marked as Non-Confidential GERMANY | ESTABLISHED HOTELS UNDERPIN CONFIDENCE IN OUR MODEL 2 COHORT OF ESTABLISHED HOTELS NOW PROFITABLE PROVING THE BUSINESS CASE 1 PBT moving annual total Hamburg City Zentrum FY22 H1 FY23 FY23 H2 OCCUPANCY 82% €m 5 H2 ARR €98 #21 / 349 hotels i
Slide 9: Current trading: continued sales growth and positive outlook
This document has been marked as Non-Confidential 1 CURRENT TRADING | CONTINUED SALES GROWTH AND POSITIVE OUTLOOK • UK accommodation sales over 15% ahead of FY23 UK • Continued RevPAR outperformance - £6.08 2 • Total F&B sales +10% ahead of FY23 • Germany accommodation sales +140% ahead of FY23 GERM
Slide 10: Capital allocation: confidence in FY24 reflected by £300m buy-back
This document has been marked as Non-Confidential CAPITAL ALLOCATION | CONFIDENCE IN FY24 REFLECTED BY £300M BUY-BACK MAINTAIN INVESTMENT Asset-backed balance sheet and investment 1 GRADE METRICS grade status, BBB- rating CONTINUE TO INVEST £400 - £450m of planned capex in FY24 THROUGH THE CYCLE CAP
Slide 11: Financial Review – Iain Strachan
This document has been marked as Non-Confidential FINANCIAL REVIEW – IAIN STRACHAN GFC
Slide 12: Financials: profit above pre-pandemic levels
This document has been marked as Non-Confidential FINANCIALS | PROFIT ABOVE PRE-PANDEMIC LEVELS 1 £m FY23 FY22 FY20 vs FY22 vs FY20 Statutory revenue (2,625) (1,703) (2,072) 54% 27% Adjusted revenue (2,625) (1,703) (2,062) 54% 27% Operating costs ((1,742) (1,345) (1,323) (30)% (32)% Adjusted EBITDAR
Slide 13: Financials: asset-backed balance sheet
This document has been marked as Non-Confidential FINANCIALS | ASSET-BACKED BALANCE SHEET £m FY23 FY22 KEY MOVEMENTS Non-current assets 8,611 8,234 • Strong trading performance driving increased Property, plant and equipment 4,554 4,227 cash balances Right-of-use assets – property, plant and equipme
Slide 14: Financials: cash flow is funding continued investment and returns
This document has been marked as Non-Confidential FINANCIALS | CASH FLOW IS FUNDING CONTINUED INVESTMENT AND RETURNS £m £184m non-expansionary £362m expansionary (546) Cashflow FY23 Net 1 pre- Operating Capex Disposals Other Dividend cashflow shareholder cashflow FY23 returns Net (debt) / cash movem
Slide 15: Green Bond Update
This document has been marked as Non-Confidential GREEN BOND UPDATE
Slide 16: Green Bond Update – FY23
This document has been marked as Non-Confidential GREEN BOND UPDATE – FY23 16
Slide 17: Use of proceeds allocation against framework – 92% allocated
This document has been marked as Non-Confidential USE OF PROCEEDS ALLOCATION AGAINST FRAMEWORK – 92% ALLOCATED 17
Slide 18: Conclusion and Q&A
This document has been marked as Non-Confidential CONCLUSION AND Q&A
Slide 19: Credit highlights
This document has been marked as Non-Confidential Credit highlights Confident of being able to offset the impact of inflation on UK profits. On 1 Largest hotel operator in the UK with the strongest brand 7 course to deliver £140m of cost savings between FY22 and FY25. Vertically integrated model aff