InterContinental Hotels Group PLC · LSE:IHG
InterContinental Hotels — Shareholder Meeting (June 2006)
19 slides from InterContinental Hotels's shareholder meeting presentation, Jun 1, 2006
Slide 1: Andrew Cosslett, Chief Executive
Andrew Cosslett Chief Executive
Slide 2: 2005 Highlights
2005 Highlights • Asset sale programme successfully executed. Britvic sold • £2.75bn cash return committed to shareholders to date • Continuing operating profit up 42% to £190 million • Adjusted earnings per share up 13% to 38.2p • Full year dividend up 7% to 15.3p • New growth strategy and target a
Slide 3: 3
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Slide 4: If it fits in, it goes on
IF IT FITS IN, IT GOES ON
Slide 5: Nominal private consumption per capita, G8
Nominal private consumption 20000 per capita, G8, nominal $; CAGR = 3.3% 15000 10000 5000 0 1996 2000 2005 5
Slide 6: 6
6
Slide 7: New ambitions and targets for our new environment
New ambitions and targets for our new environment Goal Target Faster growth by By end 2008: making IHG’s brands Net, organic growth of the first-choice for 50,000 - 60,000 rooms guests and hotel owners Strategy Priorities Build the industry’s • Brand performance strongest operating system • Excellen
Slide 8: $14bn hotel revenue delivered by IHG system
Operating review $14bn hotel revenue delivered by IHG system Hotel distribution Brand portfolio Loyalty programme Operating system delivers $14bn System funds Web presence revenues into IHG hotels Reservations Market coverage Field sales force systems 8
Slide 9: We are seeing good growth all around the world
We are seeing good growth all around the world Canada UK Middle East USA China Mexico Australia 9
Slide 10: China - a significant opportunity for IHG
China - a significant opportunity for IHG World's World's biggest Second in-bound 1.4bn Population largest market 166 cities > 1 million people out-bound within 50 new airports planned market ten years 85,000 kilometres of new roads planned within ten years 10
Slide 11: China - 51 hotels already open
Operating review China - 51 hotels already open BEIJING SHANGHAI HONGKONG IHG hotel open 11
Slide 12: China - further 49 hotels to open soon
Operating review China - further 49 hotels to open soon BEIJING SHANGHAI CHENGDU HONGKONG - IHG hotel scheduled to open 12
Slide 13: China hotel pipeline high quality and growing fast
China hotel pipeline high quality and growing fast Holiday Inn, Chengdu InterContinental, Chengdu Crowne Plaza, Express, Shanghai Pudong, Shanghai 13
Slide 14: InterContinental Nanjing – tallest hotel in the world
InterContinental Nanjing – tallest hotel in the world Under construction – opening 2008 14
Slide 15: We have strengthened the organisation
We have strengthened the organisation Finance Steve Porter, Tom Conophy, Global Leader Chief Information Franchise Strategy Officer Functions centralised IT HR Peter Gowers, Tracy Robbins, Chief Marketing Head of Human Officer Resources 15
Slide 16: Changes working - strong first quarter in 2006
Changes working - strong first quarter in 2006 • Room signings up 50% • Global RevPAR up 11.6% • Continuing operating profit up 40% to £42m • Franchised operating profit up 25% to £55m • Managed operating profit up 36% to £19m • Key owned assets continuing to improve 16
Slide 17: Summary
Summary • Transformation from asset ownership nearly complete – 168 hotels sold to date – Seven further properties expected to be sold this year • £2.75bn cash returns committed to shareholders • Organisation changes successfully implemented • New strategy and target in place • Excellent prospects f
Slide 18: 254 hotels opened over last 12 months for our 7 brands
254 hotels opened over last 12 months for our 7 brands InterContinental Holiday Inn Express Beijing Houston Holiday Inn Candlewood Suites Staybridge Suites Hotel indigo Moscow Jefferson City Sioux Falls Chicago 18
Slide 19: InterContinental Hotels Group Annual General Meeting
InterContinental Hotels Group Annual General Meeting 1st June 2006
InterContinental Hotels Group — Shareholder Meeting (June 2006) on 6ix