MILLENNIUM & COPTHORNE HOTELS PLC

INTERIM RESULTS PRESENTATION

03rd AUGUST 2016

WELCOME TO

OUR WORLD OF

HOSPITALITY

H1 2016 HIGHLIGHTS

£m H1

2016

H1

2015

%

Change

Revenue 418 404 3.5%

- at constant rates 418 418 -

Profit before tax 56 62 (9.7)%

- at constant rates 56 63 (11.1)%

Basic EPS 9.3p 11.2p (17.0)%

Interim ordinary dividend per share 2.08p 2.08p -

H1 2016 HIGHLIGHTS

RevPAR – key gateway cities

H1

2016

£

H1

2015

£

%

Change

£

New York 116.31 138.13 (15.8%)

New York LFL 132.87 145.42 (8.6)%

London 91.54 96.66 (5.3)%

London LFL 92.60 99.63 (7.1)%

Singapore 75.60 84.21 (10.2)%

Singapore LFL 75.60 84.21 (10.2)%

FINANCIAL REVIEW

Angela Ong, SVP Finance

The Bailey’s Hotel London

TOTAL REVENUE

Revenue Growth of 3.5%

404 418

5 11

14

(16)

300

320

340

360

380

400

420

RevenueH1 2015

Hotel REIT Property Foreximpact

RevenueH1 2016

£m Total Revenue H1 2015 to H1 2016

• Reported total revenue is up £14m or 3.5%.

• Revenue in constant currency is flat.

• Hotel revenues declined by 1.4%. Down by 4.3% in

constant currency.

• Property revenues are up £11m in constant currency, with

higher land sales in NZ.

• The weakening of the British Pound has a positive translation

impact on our overseas income.

HOTEL REVENUE

Hotel Revenue Declined By 1.4%

365 360

2

11 (2)

(16)

300

310

320

330

340

350

360

370

Hotel RevenueH1 2015

Acquisitions Net roomopenings

Underlying Foreximpact

Hotel RevenueH1 2016

£m Hotel Revenue H1 2015 to H1 2016

• Hotel revenue is down by 1.4%.

• In constant currency, hotel revenue declined by 4.3%.

• Deterioration of trading in our NY, London and Singapore

hotels.

• FX gain of £11m.

OPERATING PROFIT AND PROFIT BEFORE TAX

Operating Profit down 7.8%

64 59

7 3

2 2

(15)

(4)

40

45

50

55

60

65

Op ProfitH1 2015

Hotels Property Central costs Insurance Claim RevaluationDeficit

Forex Impact Op ProfitH1 2016

£m Operating Profit H1 2015 to H1 2016

• Operating profit is down by 7.8%. PBT is down by 9.7%.

• New York hotel operating loss has increased by £8m to

£10m.

• Property operations contributed £15m in profit, an

increase of £7m.

• Central costs is lower by £3m.

• Revaluation deficit relating to Tanglin Shopping Centre of

£4m.

62

56

2

(7) (1) (0) 50

54

58

62

PB

T H

1 2

015

Ope

ratin

g P

rofit

Share

of

JV

/Asso

cia

tes

Ne

t F

inance

cost

Fore

x Im

pact

PB

T H

1 2

016

£m PBT H1 2015 to H1 2016

96.66

50.18

138.13

50.49

84.21

55.04 45.02

91.54

50.42

116.31

51.57

75.60

56.77 51.64

20

40

60

80

100

120

140

160

London Rest of Europe New York Regional US Singapore Rest of Asia Australasia

H1 2015 *

H1 2016

REGIONAL REVPAR TRENDS

* Restated at H1 2016 rates

Group RevPAR down 4.2% in Constant Currency

Rest of Europe: Paris was impacted by terrorist attacks. Excluding Hard Days Night Hotel, RevPAR declined by 1.6%.

New York: Influx of new inventory and struggles with rates. Excluding ONE UN, RevPAR fell by 8.6%.

Singapore: Weak demand in corporate travel segment and increasing room supply putting pressure on pricing. Rest of Asia: RevPAR up, with strong

performance in Seoul after room refurbishment programme.

Australasia: Strong growth, driven by increased overseas visitors.

Regional US: Reflecting a pick-up in trading.

London: London RevPAR impacted by threat of terrorism related attacks leading to reduction in group bookings and individual travellers. Excluding Bailey’s, RevPAR fell by 7.1%

(5.3%)

0.5%

(15.8%)

2.1%

(10.2%)

3.1%

14.7%

£

96.66

50.18

138.13

50.49

84.21

55.04 45.02

91.54

50.42

116.31

51.57

75.60

56.77 51.64

20

40

60

80

100

120

140

160

London Rest of Europe New York Regional US Singapore Rest of Asia Australasia

H1 2015 *

H1 2016

REGIONAL REVPAR TRENDS

* Restated at H1 2016 rates

Group RevPAR down 4.2% in Constant Currency

Rest of Europe: Paris was impacted by terrorist attacks. Excluding Hard Days Night Hotel, RevPAR declined by 1.6%.

New York: Influx of new inventory and struggles with rates. Excluding ONE UN, RevPAR fell by 8.6%.

Singapore: Weak demand in corporate travel segment and increasing room supply putting pressure on pricing. Rest of Asia: RevPAR up, with strong

performance in Seoul after room refurbishment programme.

Australasia: Strong growth, driven by increased overseas visitors.

Regional US: Reflecting a pick-up in trading.

London: London RevPAR impacted by threat of terrorism related attacks leading to reduction in group bookings and individual travellers. Excluding Bailey’s, RevPAR fell by 7.1%

(5.3%)

0.5%

(15.8%)

2.1%

(10.2%)

3.1%

14.7%

£

OPERATION REVIEW

Aloysius Lee, CEO

Grand Hyatt Taipei

Operation Review

Brexit and Recent Events in Europe

• Referendum result could impact London, one of our most profitable regions, on revenue and cost

lines

• Terrorist attacks and other events add to uncertainty regarding future trading

29 June (Istanbul, TUR) – Airport Bombings

14 July (Nice, FRA) – Lorry Attack

18 July (Wuezburg, GER) – Train Incident

22 July (Munich, GER) – Shopping mall Shooting

24 July (Anbach & Reutlingen, GER) –

Multiple

26 July (Saint-Etienne-du-Rouvray, France) – Church

Incident

Terror Events

(Late June – July 2016)

Uncertainties

Currency Fluctuation

Staffing Issues

Brexit Referendum Result

(June 24)

Operation Review

Opportunities as well as Threats

• Boost in domestic tourism is noted by several media

outlets to be the key effect following recent terror

events and Brexit effects.

• M&C, with hotels in all key cities, are perfectly

poised to capitalize on any inflow of domestic

tourists to these cities

Operation Review

Brexit – Staff Issues

EU 37%

UK Nationals

50%

ROW 13%

Total UK

EU 55% UK

Nationals 28%

ROW 17%

London

• Over one-third of UK hotel staff come from neighbouring EU nations. In London, more than

half.

• Their eligibility to work in the UK is unclear.

• Contingency planning at this stage

• Additional pressure on costs from National Living Wage legislation

EU 26%

UK Nationals

66%

ROW 8%

Regional UK

ROW: Rest of the World

Operation Review

Revenue Initiatives

• The Group is focused on several key areas to improve revenue and reduce cost.

• Cross-regional management team targeting key areas for growth

M&C Revenue Practices

Targeting Growing Markets

Digital Platform

Prudent Cost

Spending

Upselling Initiatives

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

Hard Days Night Hotel, Liverpool