Intercontinental Hotels Group Plc · LSE:IHG
Intercontinental Hotels — H1 2004 Earnings Presentation
19 slides from Intercontinental Hotels's earnings presentation, September 2004
Slide 1: Richard Solomons, Finance Director
Richard Solomons Finance Director 2
Slide 2: Summary
Summary z Hotel results remain strong z Soft drinks continues to grow turnover z Interim dividend raised to 4.30p per share z £1bn return of funds since separation z Special one-off contribution to pension fund of approximately £50m 3
Slide 3: IHG Group Profit & Loss Account
IHG Group Profit & Loss Account Proforma 6 mths to 6 mths to Change £m 30 June 04* 30 June 03* % Turnover 1,101 1,043 5.6 EBITDA 254 213 19.2 Operating Profit 153 114 34.2 Interest (10) (22) 54.5 Profit before Tax 143 92 55.4 Tax rate 18% 25% Earnings per share 14.2p 7.6p 86.8 + Dividend 4.30p 4.05p
Slide 4: Results 6 months to 30 June 2004
Results 6 months to 30 June 2004 Proforma 6 mths to 6 mths to Change £m 30 Jun 04 30 Jun 03 % Hotels Turnover 735 708 3.8 Operating Profit 113 75 50.7 Soft Drinks Turnover 366 335 9.3 Operating Profit 40 39 2.6 5
Slide 5: Hotels Operating Profit 6 months to 30 June 2004
Hotels Operating Profit 6 months to 30 June 2004 Proforma 6 mths to 6 mths to $m 30 Jun 04 30 Jun 03 % Americas 145 131 10.7 EMEA 91 51 78.4 Asia Pacific 17 3 466.7 Central Overheads (47) (63) 25.4 Total Operating Profit $m 206 122 68.9 Total Operating Profit £m 113 75 50.7 Total EBITDA £m 190 152 2
Slide 6: Hotels Operating Profit 3 months to 30 June 2004
Hotels Operating Profit 3 months to 30 June 2004 Proforma 3 mths to 3 mths to $m 30 Jun 04 30 Jun 03 % Americas 86 81 6.2 EMEA 62 31 100.0 Asia Pacific 7 (4) - Central Overheads (30) (32) 6.3 Total Operating Profit $m 125 76 64.5 Total Operating Profit £m 69 46 50.0 Total EBITDA £m 107 84 27.4 7
Slide 7: Owned & Leased Estate Comparable RevPAR growth
Owned & Leased Estate Comparable RevPAR growth for 18 months to 30 June 2004 8
Slide 8: Americas Operating Profit 6 months to 30 June 2004
Americas Operating Profit 6 months to 30 June 2004 Proforma 6 mths to 6 mths to $m 30 Jun 04 30 Jun 03 % Americas - Owned & Leased 22 17 29.4 - Managed 4 5 (20.0) - Franchised 148 136 8.8 Total 174 158 10.1 Regional Overheads (29) (27) (7.4) Total Americas Operating profit $m 145 131 10.7 Total Amer
Slide 9: Americas - Franchised Hotels RevPAR Movement
Americas - Franchised Hotels RevPAR Movement 3 mths to 6 mths to RevPAR Movement 30 Jun 04 30 Jun 04 Holiday Inn 5.3% 5.0% Express 6.3% 6.8% 6 months to 30 Jun 04 Holiday Inn Express Change in royalty rate (0.02)% pts (0.02)% pts Change in number of (1.0%) 6.2% rooms available 10 Operating profit up
Slide 10: EMEA Operating Profit 6 months to 30 June 2004
EMEA Operating Profit 6 months to 30 June 2004 Proforma 6 mths to 6 mths to £m 30 Jun 04 30 Jun 03 % EMEA - Owned & Leased 38 30 26.7 - Managed 15 8 87.5 - Franchised 9 8 12.5 Total 62 46 34.8 Regional Overheads (12) (14) 14.3 Total EMEA 50 32 56.3 Total EMEA $m 91 51 78.4 11
Slide 11: EMEA - Owned & Leased Comparable RevPAR Movement
EMEA - Owned & Leased Comparable RevPAR Movement 3 mths to 6 mths to RevPAR Movement 30 Jun 04 30 Jun 04 InterContinental 8.5% 4.0% Crowne Plaza 9.8% 7.5% Holiday Inn 9.3% 8.6% HIUK London 27.7% 22.3% HIUK Regions 5.3% 6.7% 12 O&L Operating profit up £8m to £38m
Slide 12: Asia Pacific Operating Profit 6 months to 30 June 2004
Asia Pacific Operating Profit 6 months to 30 June 2004 6 mths to 6 mths to 6 mths to $m 30 Jun 04 30 Jun 03 30 Jun 02 % (04 v 02) Asia Pacific - Owned & Leased 13 6 14 (7.1) - Managed 12 4 9 33.3 - Franchised 2 2 3 (33.3) Total 27 12 26 3.8 Regional Overheads (10) (9) (9) (11.1) Total Asia Pacific 1
Slide 13: Capital Expenditure continues to be controlled
Capital Expenditure continues to be controlled Hotels Capex Spend, £m, 2001 - z Spend continues to 2004F 700 trend downwards 600 500 z Forecast for 2004 400 reduced to £250m 300 200 100 z Britvic expected spend 0 remains at £80m A A A ) ) ld ew 01 02 03 (o (n 20 20 20 F F 04 04 20 20 14
Slide 14: Soft Drinks 6 months to June 2004
Soft Drinks 6 months to June 30 2004 z Volume up 7.7% as all major brands perform strongly and gain share z Turnover up 9.3% to £366m z Operating Profit up 2.6% to £40m 15
Slide 15: IHG Group Cash Flow
IHG Group Cash Flow Proforma 6 mths to 6 mths to £m 30 Jun 04 30 Jun 03 Operating Profit 153 114 Depreciation/Amortisation 101 99 Working capital/other (20) 25 Capital expenditure (109) (158) Cash flow before disposals 125 80 Disposals 88 18 Operating cash flow 213 98 16
Slide 16: Exceptional Items 6 months to 30 June 2004
Exceptional Items 6 months to 30 June 2004 £m FelCor carrying value adjustment 6 Profit on disposal of assets 18 Exceptional interest 6 Tax on exceptional items (3) Exceptional tax credit 138 17
Slide 17: IHG Group Balance Sheet
IHG Group Balance Sheet £m 30 Jun 04 30 Jun 03 Tangible assets 3,892 4,456 Intangible assets 147 157 Working capital 9 (54) Long-term liabilities (160) (216) Net operating assets 3,888 4,343 Net debt (520) (942) Other non-operating liabilities (731) (870) Net assets 2,637 2,531 18
Slide 18: Return of Funds
Return of Funds z £213m of initial share buyback programme complete, £37m remaining z Special Dividend of £500m with associated share consolidation to be paid in December 2004 z Further Buyback of £250m once existing programme completes £1bn Return of Funds 19
Slide 19: Summary
Summary z Hotel results remain strong z Soft drinks continues to grow turnover and profit z Interim dividend raised to 4.30p per share z £1bn return of funds since separation z Special one-off contribution to pension fund of £50m 20
InterContinental Hotels Group — H1 2004 Earnings Presentation on 6ix