enjoy!Whitbread Successful brand management in the leisure industry
enjoy!Whitbread John Banham, chairman
enjoy!Whitbread Highlights Strong trading performance Improving returns Winning brands Organic growth Healthy outlook
enjoy!Whitbread Successful brand management in the leisure industry
enjoy!Whitbread David Richardson, finance director
enjoy!Whitbread Keynotes Double digit profit growth Strong cash management Better returns
enjoy!Whitbread Profit and loss account £m 2003/42002/3 Divisional sales % (less Pelican)-(23) Sales continuing businesses % Operating profit (before amortisation) % Interest(26)(30) PBTA % Goodwill amortisation(4)(4) PBT (as reported) % BEFORE EXCEPTIONAL ITEMS
enjoy!Whitbread Dividends 2003/42002/3 Interim dividend per share6.15p5.57p+10.4% Interim adjusted basic EPS %
enjoy!Whitbread Divisional results % TotalLike-for-likeProfit Year-on-year growth salessales Marriott/Swallow(1.2)(1.3)(12.0) Travel Inn Pub restaurants High Street restaurants David Lloyd Leisure
enjoy!Whitbread Divisional results (continued) % Margins MAT ROCE 2003/42002/32003/42002/3 Marriott (pre-amortisation) Travel Inn Pub restaurants High Street restaurants David Lloyd Leisure
enjoy!Whitbread Cash flow £m 2003/42002/3 Cash flow operations % Dividends from JVs and associates46 Interest(27)(27) Tax(15)(23) Capex (net)(66)(67) Dividends paid(42)(38) Net cash inflow3611
enjoy!Whitbread Exceptionals £m 2003/42002/3 Property/business disposals: Beefeater(4)- Swallow(6)- Other15 Curzons -(8) Financing costs(3)- Tax23- Exceptionals after tax11(3)
enjoy!Whitbread Financial disciplines Disclosure of key numbers Focus on returns Getting more from the assets Higher returning assets
enjoy!Whitbread High Street restaurants - progress £mFull years Half years 2000/12001/22002/32002/32003/4 Sales Profit Assets MAT ROCE
enjoy!Whitbread Things to watch for Full year, not first half x 2 Beefeater and Swallow disposals New ERP system Year end 4th March 2004
enjoy!Whitbread Capital expenditure £m ActualEstimate half yearfull yearFull year capexcapex2002 Marriott Travel Inn Pub restaurants High Street restaurants David Lloyd Leisure Other
enjoy!Whitbread Summary Profit growth Strong cash flow Improving returns
enjoy!Whitbread David Thomas, chief executive
enjoy!Whitbread Total shareholder return – October 2000 * to August 2003 Source: Datastream * Announcement of restructuring
enjoy!Whitbread Highlights Strong trading performance Improving returns Winning brands Organic growth Healthy outlook
enjoy!Whitbread Marriott - relative outperformance Sales £194m(1.2%) Like-for-like sales (1.3%) Operating profit £32.2m(12%) MAT ROCE 6.5% Occupancy 72%
enjoy!Whitbread Marriott - profit per room Marriott H1 Peer group, 6 months (M&C. De Vere, Hilton) £k 6 MONTHS
enjoy!Whitbread Travel Inn Sales£114m+9.9% Like-for-like sales+3.5% Operating profit£38.3m+7.9% MAT ROCE12.8% Occupancy82.5%
enjoy!Whitbread Travel Inn - on-line inventory cross-sell H1 2002/3H2 2002/3H1 2003/ ,000 1,200 1,400 £k per month
enjoy!Whitbread Travel Inn
enjoy!Whitbread Travel Inn - sustained rooms growth *projected 5,000 10,000 15,000 20,000 25, /71997/81998/91999/ /12001/22002/32003/42004/52007/8 Rooms ***
enjoy!Whitbread Pub restaurants Sales£307m+1.7% Like-for-like sales+3.3% Operating profit£53.4m+13.9% MAT ROCE11.0%
enjoy!Whitbread Pub restaurants - operating margin % H1 2003/4H1 2002/3 Beefeater Brewers Fayre Total pub restaurants
enjoy!Whitbread Pub restaurants - profit per outlet H1 2001/2H1 2002/3H1 2003/4 £k
enjoy!Whitbread
Beefeater - the next generation Six trial sites operating since February 30% sales uplift 8 more sites in 2003/4 Roll-out complete by 2006/7 Target ROCE: 12% +
enjoy!Whitbread High Street restaurants Sales£207.5m+6.1% Like-for-like sales+2.7% Operating profit£8.0m+31.1% MAT ROCE19.4%
enjoy!Whitbread High Street restaurants - UK growth agenda Outlets 2003/42008 Pizza Hut * Costa *Owned and franchised
enjoy!Whitbread David Lloyd Leisure Sales£99.6m+12.7% Like-for-like sales+6.6% Operating profit£23.0m+11.7% MAT ROCE9.2% Member retention 75% (MAT)
enjoy!Whitbread David Lloyd Leisure - UK club pipeline Oxford (opening February 2004) Worthing Exeter * Southend-on-Sea * Farnham * Aberdeen * Bristol * Norwich * *subject to planning approval
enjoy!Whitbread Trading update Week 24Week 33 Marriott(1.2)(0.5) Travel Inn Beefeater Brewers Fayre David Lloyd Leisure LIKE-FOR-LIKE SALES GROWTH (%)
enjoy!Whitbread The opportunity - PBIT growth potential Management action Brand distribution NB Figures identify areas of potential. They are not forecasts and exclude impact of inflation.They are incremental to 2002/3 operating profit.
enjoy!Whitbread PBIT growth potential - management action * Marriott profit per room£28m — improved sales — Swallow to Marriott conversions — market uplift *By 2007/8
enjoy!Whitbread PBIT growth potential - management action * Marriott profit per room£28m — improved sales — Swallow to Marriott conversions — market uplift *By 2007/8 Beefeater ROCE growth£14m — sales per outlet — operating margins
enjoy!Whitbread PBIT growth potential - management action * High Street brands£20m — operating margins — brand leverage *By 2007/8
enjoy!Whitbread PBIT growth potential - management action * High Street brands£20m — operating margins — brand leverage *By 2007/8 David Lloyd Leisure clubs to maturity £15m — 19 developing clubs
enjoy!Whitbread PBIT Capex £34m£290m £30m£210m £20m£200m Travel Inn to 25,000 rooms Brewers Fayre to 550 units David Lloyd Leisure to 75 clubs PBIT growth potential - brand distribution * *By 2007/8
enjoy!Whitbread The outlook Growth markets Leading brands Performance management Organic growth Improving returns
enjoy!Whitbread Successful brand management in the leisure industry