The Biltmore, Mayfair – opening Q2 2019

MILLENNIUM & COPTHORNE HOTELS PLC

Results Presentation FY2018

15 Feb 2019

INTRODUCTION

Kwek Leng Beng, Chairman

Orchard Hotel Singapore

FY 2018 HIGHLIGHTS

£m FY

2018

FY

2017 % Change

Revenue 997 1,008 (1.1)%

- at constant rates 997 987 1.0%

Profit before tax 106 147 (27.9)%

- at constant rates 106 144 (26.4)%

Gearing (vs. Dec 2017) 26.2% 24.3% 1.9% pts.

Basic EPS 13.1p 38.1p (65.6)%

Ordinary dividend per share 4.23p 6.50p (34.9)%

FINANCIAL REVIEW

Kok-Kee Chong, Chief Financial Officer

The Biltmore, Mayfair

TOTAL REVENUE

REVENUE DOWN BY 1.1% (reported currency)

• Property revenues are up by £6m at constant currency

largely due to higher New Zealand residential section

sales and the sale of 2 apartments in Australia.

• Hotel revenues are up by £5m in constant currency,

further detail on the next slide.

• The strengthening of the pound sterling during the year had a

negative foreign exchange impact of £21m.

1,008 997

6 5

(1)

(21)

940

960

980

1,000

1,020

RevenueFY17

Property Hotel REIT Foreximpact

RevenueFY18

£m REVENUE FY17 to FY18

HOTEL REVENUE

HOTEL REVENUE DOWN BY 1.5% (reported currency)

• The Waterfront Hotel in New Plymouth, New Zealand was

acquired in February 2018.

• M Social Auckland (previously Copthorne Hotel Auckland

Harbourcity) re-opened in October 2017. 12 months of

trading in 2018 versus 3 months in 2017.

• Refurbishment work and full hotel closure at the Mayfair

hotel resulted in lower revenue of £20m.

• Underlying hotel revenues are up largely due to higher

contributions from Millennium Hilton New York One UN

Plaza which was re-branded in August 2017. The hotel

traded as Hilton for 12 months in 2018 versus 5 months

in 2017.

• The stronger pound sterling resulted in a negative £18m

foreign exchange impact on revenue.

880 867

2 7

17

(20) (1)

(18)

840

860

880

900

920

Hotel revenueFY17

NewPlymouth

M SocialAuckland

Underlying Mayfairrefurbishment

Glasgow Foreximpact

Hotel revenueFY18

£m Hotel Revenue FY17 to FY18

OPERATING PROFIT AND PROFIT BEFORE TAX

OPERATING PROFIT DOWN BY 27.6% (reported currency)

PBT DOWN BY 27.9% (reported currency)

• Operating profit is down by £40m (27.6%) in reported

rate.

• Property impairment recognised in FY18 of £36m versus

FY17 of £29m.

• Other income in FY18 consists of £3m gain on disposal of

two Australian hotels formerly owned by CDLHT during

2018. Loan impairment reversal of £12m in FY17.

• Unfavourable foreign exchange impact of £3m on

operating profit.

145

105

2

(8) (9)

(14) (8) (3)

80

120

160

Op ProfitFY17

REIT &Property

Impairment/revaluation

OtherIncome

Hotels CentralCosts

Forex Op ProfitFY18

£m Operating Profit FY17 to FY18

147

106

7

(37) (8)

(3)

80

120

160

PB

T F

Y17

Share

of

JV

/Asso

cia

tes

Ope

ratin

gP

rofit

Ne

t F

inance

cost

Fore

x Im

pact

PB

T F

Y18

£m PBT FY17 to FY18

BUSINESS REVIEW

Tan Kian Seng, Interim Group CEO

Sunnyvale – artist’s impression

109.98

53.85

159.37

59.84

83.06

63.53 68.76 80.97

101.89

56.18

165.49

59.61

83.56

65.17 73.13

81.57

40

60

80

100

120

140

160

London Rest ofEurope

New York Regional US Singapore Rest of Asia Australasia Total Group

FY17*

FY18

REGIONAL REVPAR TRENDS

GROUP REVPAR UP BY 0.7% AT CONSTANT RATES

LFL GROUP REVPAR UP BY 2.4%

Rest of Europe: RevPAR up due to increase in occupancy and average room rate of 0.7% points and 3.3% respectively.

New York: RevPAR up driven largely by the higher contribution from ONE UN.

Singapore: Higher occupancy of 0.3% points and higher room rate of 0.3%.

Rest of Asia: RevPAR up in North Asia i.e. Taipei and Beijing.

Australasia: Excluding M Social Auckland and New Plymouth, RevPAR up by 3.1%.

Regional US: RevPAR down mainly due to drop in occupancy by 2.4% points.

London: Excluding Mayfair, London RevPAR was up by 3.3%.

(7.4%)

4.3%

3.8%

(0.4%)

0.6%

2.6%

6.4%

£

Restated at FY18 rates*

0.7%

This presentation contains certain statements that are or may be forward-looking with respect to the financial condition, results or operations and business of Millennium & Copthorne Hotels plc. By their nature forward-

looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to

differ materially from those expressed or implied by such forward-looking statements. Undue reliance should not be placed on forward looking statements which speak only as of the date of this document. The Group

accepts no obligation to publicly revise or update these forward-looking statements or adjust them to future events or developments, whether as a result of new information, future events or otherwise, except to the extent

legally required.

THANK YOU

The Biltmore, Mayfair (the former Millennium Hotel London Mayfair)