Brian Wallace
Group Finance Director
Hilton Group plc - Summary of Performance
Half Year to Half Year to
30 June 2001 30 June 2000
£m
£m
Hilton International
Increase
126.3
111.0
+14%
Ladbroke Betting & Gaming
63.8
51.3
+24%
Central costs and income
(6.2)
(6.8)
Operating profit
183.9
155.5
+18%
Interest
(39.6)
(46.7)
-15%
Profit before tax
144.3
108.8
+33%
Tax
(28.9)
(22.9)
Profit after tax
115.4
85.9
+34%
EBITDA before exceptional items
239.3
206.5
+16%
Earnings per share before
goodwill amortisation and
exceptional profits
7.63p
5.71p
+34%
Hilton Group plc - Exceptional Profits
£m
Sale of 11 UK hotels to RBS
Sale of 5 other UK hotels
£m
28.0
1.6
29.6
Disposal of investment property
Disposal of Pennsylvania racetrack
Pre-tax exceptional profit
3.9
1.5
35.0
Hilton International - Underlying Performance
Operating profit as reported
2001
£m
2000
£m
Increase
126.3
111.0
13.8%
Royal Bank of Scotland hotels
(6.9)
(11.7)
Scandic
(2.7)
-
Other net property changes
(1.3)
115.4
(1.7)
97.6
18.2%
Hilton UK Revpar Growth vs The London Market
%
25
20
Hilton UK vs Mkt
Market
Hilton UK
15
10
5
0
-5
-10
-15
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Hilton UK Revpar Growth vs The Provincial Market
%
20
Hilton UK vs Mkt
Market
Hilton UK
15
10
5
0
-5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Hilton UK Year on Year Movement
2000
1st Half
£m
2000
2nd Half
£m
2001
1st Half
£m
Comparable sales
9.4
29.8
22.8
Comparable gross profit
5.5
18.2
10.6
(5.2)
11.6
7.9
Comparable PBIT
Hilton International Summary
2001
Turnover Profit
£m
£m
2000
Turnover Profit
£m
£m
*Revpar
Growth
UK
301.0
70.2
281.3
65.1
6.3%
Europe
286.9
33.3
267.4
30.0
(3.0%)
Middle East
and Africa
114.3
7.4
103.0
6.6
1.9%
Asia / Australasia
244.6
4.4
243.4
4.2
0.0%
Americas
134.1
13.1
114.4
10.0
6.6%
Scandic
28.1
2.7
-
-
-
LivingWell
26.0
2.1
19.4
2.0
-
1,135.0
133.2
1,028.9
117.9
Central & nonoperating items
(6.9)
126.3
* Revpar growth stated at constant exchange rates.
(6.9)
111.0
1.8%
Comparable Like for Like Gross Operating Profit % by Area
%
50.0
2000
46.1
46.6 46.6
45.9
45.0
38.1
37.8 37.9
40.0
2001
38.2
35.0
30.0
30.3
30.9
29.9 29.2
25.0
Americas
Asia/Australasia Middle East Continental
& Africa
Europe
UK
Total
2001 Like for Like Revpar Growth at Constant Exchange Rates
% Growth
10.0
Quarter 1
9.7%
8.6%
8.0
7.1%
6.2%
6.0
6.5%
4.8%
4.0
4.1%
3.2%
1.6%
2.0
0.0
-2.0
-4.0
(3.7%)
-6.0
-8.0
UK
Europe,
Middle East
& Africa
Asia/
Australasia
Americas
Total
Quarter 2
Ladbroke Betting & Gaming Profit Comparison
Revenue
Profit
2001
£m
2000
£m
2001
£m
2000
£m
Retail Betting
948.5
968.4
60.8
46.3
Telephone Betting
125.8
115.1
1.6
(0.2)
62.8
7.7
0.2
(4.5)
Continuing businesses 1,137.1
1,091.2
62.6
41.6
-
6.8
eGaming
Casinos
Disposal businesses
-
63.3
79.0
152.7
1.2
2.9
1,216.1
1,307.2
63.8
51.3
UK Retail Betting - Comparative Analysis
2001
£m
2000
£m
Variance
£m
Turnover
817.3
842.4
(25.1)
Gross profit (including AWP’s)
168.4
155.5
12.9
Gross profit %
- including AWP’s
20.6%
18.5%
2.1%
- excluding AWP’s
19.0%
16.9%
2.1%
Operating costs
(118.2)
(116.6)
(1.6)
Operating profit
50.2
38.9
11.3
Gross Betting Margin Before Costs (%)
First Half
2001
2000
Horses
17.5
15.2
Football
27.5
21.3
Greyhounds
20.0
20.5
Numbers
27.6
29.0
Other Sports
15.3
12.6
Total
19.0
16.9
Analysis of Telephone Betting/eGaming Profit
2001
£m
2000
£m
Variance
£m
1.9
0.1
1.8
1.5
1.3
(0.1)
0.3
(1.3)
0.7
1.2
2.6
(0.8)
Total Telephone Betting
4.6
(0.2)
4.8
eGaming
0.2
(4.5)
4.7
4.8
(4.7)
9.5
Telephone Betting
UK
International
- Elite Telebetting
- Other Telebetting
- High Roller Activity
One-off repatriation costs
(3.0)
1.8
(4.7)
(3.0)
6.5
Group Cash Flow
Inflow from operating activities
2001
£m
194.2
2000
£m
176.8
Interest paid
(29.9)
(26.9)
Tax paid
(25.4)
(22.0)
Dividends paid
(79.2)
(75.2)
Free cash flow
59.7
52.7
Capital expenditure
(94.6)
(216.2)
Proceeds from asset sales
363.8
Acquisitions/disposals
0.9
(414.6)
(85.7)
4.8
(157.8)
(37.1)
(19.5)
Opening net debt
(1,374.3)
(1,336.8)
Closing net debt
(1,497.1)
(1,514.1)
Exchange & other movements
Analysis of Capital Expenditure
£m
Hilton
LivingWell UK Clubs
LivingWell Australia
Manchester Deansgate
Sao Paulo
Zurich
Other UK
Other Overseas
£m
12.5
5.8
5.4
4.7
3.1
30.9
13.9
76.3
Betting & Gaming
BS2000 EPOS System
Other
7.4
10.9
18.3
94.6
BS2000/EPOS

2 year roll-out completed end of July 2001

Cost of project £25m

Major savings to be achieved through better settling
accuracy and pay out and shop efficiency

Initial performance indicators show that on track to meet
5 year pay off target

Consumer benefits yet to be factored in such as faster
settlement and pay out of winning bets

Handling more bet volumes post duty charge
David Michels
Group Chief Executive
Revenue Per Available Room - Like for Like
First Quarter
Second Quarter
Six Months to June
2001 at 2000 Growth 2001 at 2000 Growth 2001 at 2000 Growth
00 rates
00 rates
00 rates
London
77.8
72.2
7.8%
85.6
84.4
1.4%
81.7
78.3
4.3%
Provinces
49.7
46.2
7.6%
52.4
49.8
5.2%
51.1
48.0
6.5%
Total United Kingdom
60.9
56.1
8.6%
65.3
62.7
4.1%
63.2
59.5
6.2%
Europe,
Middle East & Africa
44.2
41.6
6.2%
51.5
53.5
(3.7%)
47.9
47.7
0.4%
47.5
45.3
4.8%
53.5
50.2
6.5%
50.4
47.9
5.2%
44.3
40.4
9.7%
50.6
49.0
3.2%
47.5
44.7
6.3%
48.8
45.6
7.1%
55.1
54.2
1.6%
52.0
50.0
4.0%
Asia/Australasia
The Americas
Total
Openings and Closures
Openings
1st Half
Rooms Openings
2nd Half
Rooms Sales/Closures Rooms
1st Half
Copenhagen
382
The Trafalgar
129
St. Ermins
290
Adana
308
Jeddah
422
Huddersfield
114
Melbourne Airport 280
Cairo
200
Kuala Lumpur
581
Sofia
246
Ras Al Khaimah
214
Stoke on Trent
125
Rhodes Resort
404
Dubai Creek
154
Bath Waterside
106
Sorrento
370
Ras Sudr Sinai Resort 176
Newcastle
119
Auckland
166
Edinburgh Belford 144
Bangalore
150
Sharm El Sheikh
Image Resort
307
Luxembourg
337
Chongqing
400
Algiers
411
Guest Satisfaction
1999
9%
12%
20%
June 2001
2000
8%
19%
20%
68%
Completely or very satisfied
71%
Fairly satisfied
73%
Dissatisfied
Independent research carried out for Hilton International
based on a sample of over 12,500 respondents
Hilton International Capex Forecast
(Excluding new builds/acquisitions)
< £175 million
Scandic - Rebranding to Hilton
By Dec 2001
11
By June 2002
10
By Dec 2002
12
Total
33
• Plus 5-8 through December 2003
London Metropole
Twelve month rolling average
Occupancy, Room Rate and Total Revenue
120
Revenue £m
%/£
91.3
100
84.6
85.4
87.1
88.2
89.3
3.8
90.3
3.6
80
3.5
3.4
60
3.2
3.2
40
3.1
2.9
2.9
20
2.8
0
2.7
Dec 00
2.6
Jan 01
Occupancy %
Feb 01
Mar 01
Apr 01
Total revenue £m
May 01
Jun 01
Average rate £
Hilton Alliance
Hilton HHonors
Total members
Active members
Hilton Reservations Worldwide
Total worldwide
hilton.com worldwide
HRW Hilton International
30th June
2001
30th June
2000
11.4m
6.1m
8.5m
4.6m
4.9m
330k
946k
4.7m
159k
824k
Conrad Joint Venture
Waldorf Towers becomes Conrad
3 new Conrads outside USA close to signing
Number of Hotels by Type
Fixed Contingent Management
Lease
Contract Total
Owned Lease
UK
57
2
15
2
76
Continental Europe
15
49
110
31
205
Africa/Middle East
4
-
5
29
38
Asia/Australasia
2
2
2
28
34
The Americas
7
1
7
11
26
85
54
139
101
379
Total No. of Hotels
Hilton International - Property
Net book value
June 2001
Dec 2000
UK
£1.6 billion
£1.9 billion
Overseas
£1.0 billion
£0.9 billion
LivingWell
Current Membership:
UK
International
Total
115,000
12,839
127,839
Half Year Shop Performance - UK and Jersey
1995
1996
1997
1998
1999
2000
2001
Average
number of shops 1,878 1,831
1,892
1,892
1,910
1,879
1,883
PBIT £m
22.8
29.1
37.1
43.3
34.7
36.1
48.3
PBIT per
Shop £k
12.1
15.9
19.6
23.0
18.2
19.2
25.7
N.B. Excludes SIS contribution
Betting Duty Modernisation
• Gross profits tax of 15% replaces 6.75% turnover tax on
6th October
• Increases in turnover will come from
• Recycling
• Increased spend
• Illegal gambling
PBIT Impact per annum
• Assuming no change to gross margins turnover levels
+25%
+30%
Breakeven
25%
• Assuming 1% decline in gross margins
+30%
+40%
Breakeven
28%
N.B. Uses 2000 UK retail margin and 2000 PBIT as base. No change in Levy
SIS/Media Rights/Levy/BHB
• SIS picture and data contract for British horseracing
expires May 2002
• SIS have secured alternative content
• Foot and mouth indicated punters will readily accept alternatives
• Government announced review of continuance of statutory levy likely to be at least 3 years
• British racing has issued a policy, pricing racing data
and pictures at:
data
1.5% turnover
picture and audio
1.0% turnover
2.5% (2.94% incl. VAT)
At this price Ladbrokes will revert to alternative content
Gambling Review
• Report published 17th July 2001
• Consultation on recommendations until
end October 2001
• Possibility of changes via better regulation
• Most changes via legislation
Key Betting Recommendations
• 4 x £500 jackpots
• Betting on the UK lottery
• Removal of demand criteria
eGaming
Sportsbook
Ladbrokes.co.uk and
Ladbrokes.com
Casino
Ladbrokescasino.com
Customers
200,000 registrations
16,750 players
% Active
40%
83%
Countries
161
85
Currencies
23
21
£ Stake per bet 18.98
18.26
Languages
4
6
Active = 1 or more bets in the period
eGaming
Key Partners
• Playboy
• Poker million
• K L Invest (Scandinavia)
• Microgaming
• Teamtalk
• Cricinfo
240 affiliates from 35 countries, 82 in the Far East
UK
Far East

Bet brain

Bethelp

Bookies index

Bettingjam

Easyodds

SCMP
Betting and Gaming
Digital TV
Homes (M)
Carrier
Satellite
5.5
BSkyB
Cable
1.5
Ntl/Telewest
Terrestrial
1.1
ITV digital
8.1
Ladbrokes are featured on:
• BSkyB - from start of joint venture
• Ntl/Telewest
• ITV digital
• Bush TV
• Freeserve digital
Ladbroke and BSkyB

BSkyB has 5.5m digital homes and 66 live premier
league football matches

Ladbroke has the best betting brand

50:50 joint venture to be created including Surrey Sports
and Vernons, using Ladbroke, Surrey and Vernons
brands

Ladbroke appoint CEO

£30m cash payment on signing subject to OFT clearance

OFT clearance expected by the end of the year

Joint venture commences operating in 2002
Balls!

The latest interactive product, designed and developed
in-house

A new rapid number draw game carrying the
nomenclature Balls

Launched 4 weeks ago and has already generated over
3,000 individual players

Range of fixed odds betting opportunities based upon a 6
from 48 number draw taking place every minute and
returning circa 94% of stakes to customers

Thursday before last we took the same turnover on Balls as
we took on day 3 of the York Ebor meeting
Appendix
Analysis by Contract Type
2001
Owned Fixed
Lease
Contingent Mgmt
Lease Contract
Scandic LivingWell
Total
No. of hotels
82
14
41
88
154
N/A
379
No. of rooms
20,044
4,971
12,604
29,945
26,533
N/A
94,097
£m
£m
£m
£m
£m
£m
£m
Turnover
325.5
114.0
185.2
456.2
28.1
26.0
1,135.0
Gross operating profit
127.1
45.0
73.3
159.3
28.1
26.0
458.8
(1.1)
(17.7)
(40.6)
(142.4)
-
-
(201.8)
Depreciation
(25.9)
(8.3)
(2.8)
-
(1.2)
(1.8)
(40.0)
Other costs/income
(20.0)
(5.8)
(11.7)
-
(24.2)
2001 profit
80.1
13.2
18.2
16.9
2.7
(22.1)
2.1
(83.8)
133.2
2000 profit
75.3
12.3
13.7
14.6
-
2.0
117.9
Less:
Rental/owners return
Descargar

No Slide Title