99.1
|
Half Yearly Report dated 6 August 2013
|
||||
|
|
||||
Financial summaryº
|
2013
|
20121
|
% Change YoY
|
||
Actual
|
CER2
|
CER & ex. LDs3
|
|||
Revenue
|
$936m
|
$878m
|
7%
|
7%
|
2%
|
Operating profit
|
$338m
|
$281m
|
20%
|
20%
|
6%
|
Total adjusted EPS
|
78.2¢
|
62.8¢
|
25%
|
||
Total basic EPS4
|
127.8¢
|
93.4¢
|
37%
|
||
Interim dividend per share
|
23.0¢
|
21.0¢
|
10%
|
||
Net debt
|
$861m
|
$564m
|
Richard Solomons, Chief Executive of InterContinental Hotels Group PLC, said:
|
|
"We have delivered a good performance in the first half, with our preferred brands driving RevPAR growth of 3.7%, including 4.0% in the second quarter. Our global scale has allowed us to reinvest in the business whilst growing margins, resulting in solid underlying profit gains led by our Americas region, and strong cash flows.
Consistent with our long track record of returning value to shareholders, we today announce a $350m special dividend. In addition we are increasing the interim dividend by 10% reflecting our good first half results and the confidence we have in the future prospects of the business.
We continue to strengthen our foundation for future growth, signing more than 200 hotels into our pipeline, a notable increase on H1 2012 reflecting our owners' confidence in both IHG and the industry demand drivers.
Our high quality pipeline, broad geographic spread and fee based model give us confidence in the outlook, despite the ongoing challenging economic conditions in some of our markets."
|
Driving Market Share
|
||||||||
•
|
Total gross revenue5 from hotels in IHG's system of $10.4bn, up 1% (2% CER).
|
|||||||
•
|
First half global RevPAR growth of 3.7% (rate up 1.9%) with second quarter up 4.0% (rate up 1.8%).
|
|||||||
-
|
Americas 4.5% (US 4.7%); Europe 0.4%; AMEA 6.2%; Greater China (0.1)%.
|
|||||||
-
|
Q2 RevPAR: Americas 4.6% (US 4.7%); Europe 2.2%; AMEA 6.8%; Greater China (1.9)%.
|
|||||||
•
|
Total system size of 678k rooms (4,643 hotels), up 1.7% year on year.
|
|||||||
-
|
15k rooms (108 hotels) added to the system, with over half of these for the Holiday Inn brand family.
|
|||||||
-
|
Pipeline of 179k rooms (1,098 hotels), over 40% under construction.
|
|||||||
-
|
Signings of 32k rooms (216 hotels) up over 40% on H1 2012, with 9k rooms in Greater China.
|
|||||||
-
|
Openings and signings include 4k rooms on US Army bases added in the half.
|
|||||||
•
|
Fee revenue5 up 4%2 to $562m, led by the Americas with growth of 7%2.
|
|||||||
-
|
Increasing proportion of new rooms are now coming from developing markets, which have lower absolute RevPAR levels, particularly in the initial years as demand drivers mature.
|
|||||||
•
|
Building preferred brands.
|
|||||||
-
|
Three EVEN Hotels in the pipeline at the end of June, of which two were added in H1, and with a fourth in July.
|
|||||||
-
|
Four HUALUXE Hotels & Resorts signed, taking the pipeline to 19 hotels.
|
|||||||
-
|
IHG Rewards Club launched 1 July; first loyalty programme in the industry to offer members free internet globally.
|
|||||||
-
|
Holiday Inn ranked "Highest in Guest Satisfaction Among Mid-scale Full Service Hotel Chains" by J.D. Power and Associates for 3rd year running.
|
|||||||
-
|
Holiday Inn Express Stay Smart™ campaign relaunched in the US.
|
|||||||
•
|
Growing margins.
|
|||||||
-
|
Fee based margin5 of 44.0%, up c.50 basis points year on year on an underlying basis.
|
|||||||
Uses of Cash
|
||||||||
•
|
Return of funds to shareholders.
|
|||||||
-
|
$350m will be returned to shareholders via a special dividend7 to be paid with the interim dividend in October.
|
|||||||
-
|
The $500m share buyback programme is almost 50% complete, with 8.9m shares repurchased for $243m. Year to date 4.8m shares have been repurchased for $136m.
|
|||||||
•
|
Growth investment funded by recycling capital.
|
|||||||
-
|
$401m6 cash from disposals primarily represents $368m6 net proceeds from InterContinental London Park Lane.
|
|||||||
-
|
Growth capital expenditure of $55m in H1 includes c.$30m on our first owned EVEN Hotel property.
|
|||||||
-
|
Full year growth capital expenditure is on track for $100m - $200m.
|
|||||||
-
|
Maintenance capital expenditure of $59m in H1 and on track for c$150m in the full year.
|
|||||||
•
|
Sustainable growth in the ordinary dividend.
|
|||||||
-
|
10% increase in the interim dividend to 23¢ reflects confidence in IHG's future prospects and our cash generative business model.
|
|||||||
Asset disposals
|
||||||||
•
|
Disposal of InterContinental London Park Lane completed, with management contract secured for up to 60 years.
|
|||||||
•
|
The disposal process continues for InterContinental New York Barclay.
|
|||||||
Current trading update
|
||||||||
•
|
Early indications are that current trading trends are broadly in line with the first half.
|
|||||||
º All figures are before exceptional items unless otherwise noted. See appendices for financial headlines
|
1 Restated for the adoption of IAS19R
|
|||||||
2 CER = constant exchange rates
|
3 Excluding liquidated damages receipts in 2013 of $31m in the Americas and $9m in Europe ($0m in 2012)
|
|||||||
4 Including exceptional items
|
5 See appendix 5 for definition
|
6 Net of $(94)m, which has been used to provide security over UK pension liabilities
|
||||||
7 Special dividend to be paid without share consolidation.
|
||||||||
Americas - Continued RevPAR progression drives profit growth
|
RevPAR increased 4.5% (with 2.9% rate growth) and second quarter RevPAR increased 4.6% (with 2.5% rate growth). US RevPAR was up 4.7% in both the first half and the second quarter. On a total basis, including the benefit from new hotels but excluding the impact from the removal of 8 hotels with one owner, US RevPAR grew 4.9% in H1 with 5.1% in the second quarter.
Revenue increased 14% to $457m and operating profit increased 21% to $282m. After adjusting for the $31m liquidated damages receipt in the managed business and excluding results from one managed lease hotel*, revenue increased 7% and operating profit increased 8%. This was driven by 6% growth in franchise royalties, and strong drop-through in the owned and leased hotels. This was partly offset by the loss of $4m in fees relating to the 8 hotels with one owner that were removed in the first quarter, and a $4m increase in regional overheads.
We opened 10k rooms (89 hotels) in the first half, with more than half of these rooms under the Holiday Inn brand family. We signed and opened 4k rooms on US Army bases in the first half, taking the total open under this contract to 12k rooms. Signings of 18k rooms (161 hotels) are up 39% year on year (up 8% excluding the rooms on US Army bases), and included two EVEN Hotels properties.
|
Europe - Resilient trading in key markets
|
RevPAR increased 0.4%, with 0.5% rate decline. Second quarter RevPAR increased 2.2% (with 0.3% rate growth) in part reflecting the reversal of the Easter timing impact as expected. Trading was resilient in our key markets with H1 RevPAR up 1.6% in the UK, 1.1% in Germany and 4.0% in France.
Revenue of $206m was flat year on year and operating profit of $53m increased 6% (reported and CER). After adjusting for a $9m liquidated damages receipt in Europe franchised, the disposal of InterContinental London Park Lane in Q2 2013 and excluding results from managed lease hotels*, both revenue and operating profit increased 6% at CER. Strong owned and leased hotel performance was driven by 11.3% RevPAR growth at InterContinental Paris Le Grand.
We opened 2k rooms (8 hotels) in the half, including 1k rooms for the Holiday Inn brand family, a Hotel Indigo hotel in Barcelona, the first for the brand in Southern Europe and a new InterContinental in Marseille. We signed 2k rooms (15 hotels); mostly for the Holiday Inn brand family, including a third signing under the 15 hotel multiple development agreement for Holiday Inn Express in Russia.
|
AMEA - Good RevPAR growth across the region
|
RevPAR was up 6.2% (with 1.6% rate growth) and second quarter RevPAR was up 6.8% (with 2.3% rate growth). Southeast Asia and Japan reported high single digit RevPAR growth; the Middle East and Australasia both achieved mid-single digit RevPAR increases.
Revenue decreased 6% (3% CER) to $102m and operating profit increased 3% (5% CER) to $41m. At CER and excluding results from one managed lease hotel*, revenue decreased 6% and operating profit increased 5%. This was driven by strong RevPAR growth and lower costs in the managed business, partly offset by a $3m negative impact from the renewal of a small number of long-standing contracts onto current commercial terms (full year impact expected to be $6m).
We opened 2k rooms (6 hotels) in the first half, including an InterContinental hotel in Osaka, our first new build InterContinental to open in Japan for over 15 years. We signed 3k rooms (10 hotels) in H1, up over 80% year on year, including a Crowne Plaza hotel in Oman and 2k rooms for the Holiday Inn brand family including our first Holiday Inn hotel for Mauritius. In July we announced a 15 hotel multiple development agreement in Australia for Holiday Inn Express.
|
Greater China - Strong signings and industry outperformance
|
RevPAR decreased 0.1%, (with rate down 1.2%) outperforming the industry by 5.9% points. Second quarter RevPAR decreased 1.9% with a 2.0% rate decline. This reflects the adverse impact from a series of natural disasters in Western China in Q2 and the ongoing impact from the slower macroeconomic conditions.
Revenue increased 4% (4% CER) to $112m due to 8% net rooms growth driving rooms revenue up 9% and non-rooms revenues up 3%. Operating profit was flat at $36m (reported and CER) reflecting managed system size growth and cost control measures at InterContinental Hong Kong. This was offset by investment in regional overheads to support future growth as previously disclosed.
We opened 2k rooms (5 hotels) in H1, including a 500 room Crowne Plaza resort hotel in Xishuangbanna, the first major international hotel to open in this prime leisure market in Southwest China, and our first Hotel Indigo hotel in Hong Kong. We signed 9k rooms (30 hotels) taking the pipeline to 58k rooms and reflecting the confidence owners have in both IHG and the compelling long term growth opportunity for this region.
|
*See appendix 5 for definition
|
Interest, tax, net debt, exceptional items and accounting policy change
|
Interest: H1 charge of $36m (H1 2012: $25m) reflected the increase in gross debt year on year, following the issuance of a £400m bond in November 2012.
Tax: Based on the position at the end of the half, the tax charge has been calculated using an estimated annual tax rate of 31% (H1 2012: 29%). The full year tax rate is expected to be in the low 30s in 2013 and 2014 as previously guided.
Net debt: $861m at the end of the half (including the $213m finance lease on the InterContinental Boston). This is up from $564m at 30 June 2012 as a result of the $0.5bn special dividend paid in October 2012 and the $243m share buyback completed to date, but down on the year end position of $1,074m due to the $368m net cash inflow from the disposal of the InterContinental London Park Lane.
Exceptional operating items: net exceptional credit of $160m for the half included $166m net gain on disposal of InterContinental London Park Lane.
Adoption of IAS 19 (Revised) 'Employee Benefits': adoption of this new accounting policy from 1 January 2013 has resulted in an additional $5m charge to operating profit for H1 2012, as reflected in the restated 2012 half year accounts.
|
Appendix 1: RevPAR Movement Summary
|
||||||
Half Year 2013
|
Q2 2013
|
|||||
RevPAR
|
Rate
|
Occ.
|
RevPAR
|
Rate
|
Occ.
|
|
Group
|
3.7%
|
1.9%
|
1.1pts
|
4.0%
|
1.8%
|
1.4pts
|
Americas
|
4.5%
|
2.9%
|
1.0pts
|
4.6%
|
2.5%
|
1.4pts
|
Europe
|
0.4%
|
(0.5)%
|
0.6pts
|
2.2%
|
0.3%
|
1.4pts
|
AMEA
|
6.2%
|
1.6%
|
3.1pts
|
6.8%
|
2.3%
|
3.1pts
|
G. China
|
(0.1)%
|
(1.2)%
|
0.6pts
|
(1.9)%
|
(2.0)%
|
0.1pts
|
*See appendix 5 for definition
Appendix 2: First Half System & Pipeline Summary (rooms)
|
|||||||
System
|
Pipeline
|
||||||
Openings
|
Removals
|
Net
|
Total
|
YoY%
|
Signings
|
Total
|
|
Group
|
14,910
|
(12,926)
|
1,984
|
677,966
|
1.7%
|
31,554
|
178,759
|
Americas
|
10,075
|
(7,187)
|
2,888
|
452,505
|
1.3%
|
17,737
|
75,102
|
Europe
|
1,548
|
(3,085)
|
(1,537)
|
100,490
|
(0.6)%
|
2,126
|
15,090
|
AMEA
|
1,683
|
(2,309)
|
(626)
|
62,111
|
2.4%
|
2,540
|
30,836
|
G. China
|
1,604
|
(345)
|
1,259
|
62,860
|
8.0%
|
9,151
|
57,731
|
Appendix 3: First Half financial headlines
|
||||||||||||
6 months to 30 June 2013
Operating Profit $m
|
Total
|
Americas
|
Europe
|
AMEA
|
G. China
|
Central
|
||||||
2013
|
2012*
|
2013
|
2012
|
2013
|
2012*
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012*
|
|
Franchised
|
294
|
263
|
245
|
224
|
41
|
31
|
6
|
6
|
2
|
2
|
-
|
-
|
Managed
|
132
|
103
|
52
|
24
|
12
|
15
|
45
|
42
|
23
|
22
|
-
|
-
|
Owned & leased
|
51
|
50
|
11
|
7
|
17
|
20
|
1
|
2
|
22
|
21
|
-
|
-
|
Regional overheads
|
(65)
|
(57)
|
(26)
|
(22)
|
(17)
|
(16)
|
(11)
|
(10)
|
(11)
|
(9)
|
-
|
-
|
Profit pre central overheads
|
412
|
359
|
282
|
233
|
53
|
50
|
41
|
40
|
36
|
36
|
-
|
-
|
Central overheads
|
(74)
|
(78)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(74)
|
(78)
|
Group Operating profit
|
338
|
281
|
282
|
233
|
53
|
50
|
41
|
40
|
36
|
36
|
(74)
|
(78)
|
*Restated for the adoption of IAS19R.
|
Total***
|
Americas
|
Europe
|
AMEA
|
G. China
|
|||||||||||
Actual*
|
CER**
|
Actual*
|
CER**
|
Actual*
|
CER**
|
Actual*
|
CER**
|
Actual*
|
CER**
|
||||||
H1 Growth/ (decline)
|
20%
|
20%
|
21%
|
21%
|
6%
|
6%
|
3%
|
5%
|
0%
|
0%
|
Exchange rates:
|
H1
|
||||||||||||||
GBP:USD
|
EUR:USD
|
* US dollar actual currency
|
|||||||||||||
2013
|
0.65
|
0.76
|
** Translated at constant 2012 exchange rates
|
||||||||||||
2012
|
0.63
|
0.77
|
*** After central overheads
|
||||||||||||
Appendix 5: Definitions
|
Total gross revenue: total room revenue from franchised hotels and total hotel revenue from managed, owned and leased hotels. It is not revenue attributable to IHG, as it is derived mainly from hotels owned by third parties. The metric is highlighted as an indicator of the scale and reach of IHG's brands.
Fee based margin and fee revenue: adjusted for owned and leased hotels, managed leases hotels and individually significant liquidated damages payments.
Managed lease hotels: properties that are structured for legal reasons as operating leases but with the same characteristics as management contracts.
|
Appendix 6: Investor Information for 2013 interim dividend
|
|||
Ex-dividend date:
|
21 August 2013
|
Record date:
|
23 August 2013
|
Payment date:
|
4 October 2013
|
Dividend payment:
|
Ordinary shares = 15.1 pence per share
|
ADRs = 23.0 cents per ADR
|
Appendix 7: Investor Information for 2013 special dividend
|
|||
Ex-dividend date:
|
21 August 2013
|
Record date:
|
23 August 2013
|
Payment date:
|
4 October 2013
|
Dividend payment:
|
Ordinary shares = 87.1 pence per share
|
ADRs = 133.0 cents per ADR
|
For further information, please contact:
|
|||
Investor Relations (Catherine Dolton; Isabel Green):
|
+44 (0)1895 512176
|
||
Media Relations (Yasmin Diamond, Zoe Bird):
|
+44 (0)1895 512008
|
+44 (0) 7736 746767
|
|
Presentation for Analysts and Shareholders:
A presentation with Richard Solomons, Chief Executive Officer and Tom Singer, Chief Financial Officer will commence at 9.30am UK time on 6 August at Goldman Sachs, Rivercourt, 120 Fleet Street, London, EC4A 2BE. There will be an opportunity to ask questions. The presentation will conclude at approximately 11am.
There will be a live audio webcast of the results presentation on the web address http://www.ihgplc.com/interims13.
The archived webcast of the presentation is expected to be on this website later on the day of the results and will remain on it for the foreseeable future. There will also be a live dial-in facility: |
|||
UK Toll
UK Toll Free
US Toll
US Toll Free
|
+44 (0)20 3003 2666
0808 109 0700
+1 646 843 4608
+1 866 966 5335
|
||
Passcode:
|
IHG
|
||
A replay of the 9.30 am conference call will be available following the event - details are below:
|
|||
UK Toll
|
+44 (0)20 8196 1998
|
||
Replay pin
|
2184275
|
||
US conference call and Q&A:
There will also be a conference call, primarily for US investors and analysts, at 9.00am Eastern Standard Time on 6 August with Richard Solomons (Chief Executive Officer) and Tom Singer (Chief Financial Officer). There will be an opportunity to ask questions.
|
|||
UK Toll
UK Toll Free
US Toll
US Toll Free
|
+44 (0)20 3003 2666
0808 109 0700
+1 646 843 4608
+1 866 966 5335
|
||
Passcode:
|
IHG
|
||
A replay of the 9am EST conference call will be available following the event - details are below:
|
|||
UK Toll
|
+44 (0)20 8196 1998
|
||
Replay pin
|
8150046
|
||
Website:
The full release and supplementary data will be available on our website from 7.00 am (London time) on 6 August. The web address is http://www.ihgplc.com/interims13. To watch a video of Tom Singer reviewing our results visit our YouTube channel at http://www.youtube.com/ihgplc.
|
|||
Notes to Editors
IHG (InterContinental Hotels Group) [LON:IHG, NYSE:IHG (ADRs)] is a global organisation with a broad portfolio of nine hotel brands, including InterContinental® Hotels & Resorts, Hotel Indigo® Hotels, Crowne Plaza® Hotels & Resorts, Holiday Inn® Hotels and Resorts, Holiday Inn Express® Hotels, Staybridge Suites® Hotels, Candlewood Suites® Hotels, EVEN™ Hotels and HUALUXE™ Hotels & Resorts.
IHG manages IHG® Rewards Club, the world's first and largest hotel loyalty programme with over 74 million members worldwide. The programme was relaunched in July 2013, offering enhanced benefits for members including free internet across all hotels, globally.
IHG franchises, leases, manages or owns over 4,600 hotels and 678,000 guest rooms in nearly 100 countries and territories. With more than 1,000 hotels in its development pipeline, IHG expects to recruit around 90,000 people into additional roles across its estate over the next few years.
InterContinental Hotels Group PLC is the Group's holding company and is incorporated in Great Britain and registered in England and Wales.
Visit www.ihg.com for hotel information and reservations and www.ihgrewardsclub.com for more on IHG Rewards Club. For our latest news, visit: www.ihg.com/media, www.twitter.com/ihg, www.facebook.com/ihg or www.youtube.com/ihgplc.
|
|||
Cautionary note regarding forward-looking statements:
This announcement contains certain forward-looking statements as defined under US law (Section 21E of the Securities Exchange Act of 1934). These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements often use words such as 'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe' or other words of similar meaning. By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty. There are a number of factors that could cause actual results and developments to differ materially from those expressed in or implied by, such forward-looking statements. Factors that could affect the business and the financial results are described in 'Risk Factors' in the InterContinental Hotels Group PLC Annual report on Form 20-F filed with the United States Securities and Exchange Commission.
|
|||
6 months ended 30 June
|
||||
Group results
|
2013
|
2012
|
%
|
|
$m
|
$m
|
change
|
||
Revenue
|
||||
Americas
|
457
|
400
|
14.3
|
|
Europe
|
206
|
206
|
-
|
|
AMEA
|
102
|
108
|
(5.6)
|
|
Greater China
|
112
|
108
|
3.7
|
|
Central
|
59
|
56
|
5.4
|
|
____
|
____
|
_____
|
||
936
|
878
|
6.6
|
||
____
|
____
|
____
|
||
Operating profit
|
||||
Americas
|
282
|
233
|
21.0
|
|
Europe
|
53
|
50
|
6.0
|
|
AMEA
|
41
|
40
|
2.5
|
|
Greater China
|
36
|
36
|
-
|
|
Central
|
(74)
|
(78)
|
5.1
|
|
____
|
____
|
_____
|
||
Operating profit before exceptional items
|
338
|
281
|
20.3
|
|
Exceptional operating items
|
160
|
23
|
595.7
|
|
___
|
___
|
___
|
||
498
|
304
|
63.8
|
||
Net financial expenses
|
(36)
|
(25)
|
(44.0)
|
|
___
|
___
|
___
|
||
Profit before tax
|
462
|
279
|
65.6
|
|
___
|
___
|
___
|
||
Earnings per ordinary share
|
||||
Basic
|
127.8¢
|
93.4¢
|
36.8
|
|
Adjusted
|
78.2¢
|
62.8¢
|
24.5
|
|
Average US dollar to sterling exchange rate
|
$1 : £0.65
|
$1 : £0.63
|
3.2
|
6 months ended 30 June
|
|||||
Americas Results
|
2013
|
2012
|
%
|
||
$m
|
$m
|
change
|
|||
Revenue
|
|||||
Franchised
|
278
|
260
|
6.9
|
||
Managed
|
79
|
47
|
68.1
|
||
Owned and leased
|
100
|
93
|
7.5
|
||
____
|
____
|
____
|
|||
Total
|
457
|
400
|
14.3
|
||
____
|
____
|
____
|
|||
Operating profit before exceptional items
|
|||||
Franchised
|
245
|
224
|
9.4
|
||
Managed
|
52
|
24
|
116.7
|
||
Owned and leased
|
11
|
7
|
57.1
|
||
____
|
____
|
_____
|
|||
308
|
255
|
20.8
|
|||
Regional overheads
|
(26)
|
(22)
|
(18.2)
|
||
____
|
____
|
____
|
|||
Total
|
282
|
233
|
21.0
|
||
____
|
____
|
____
|
|||
Hotels
|
Rooms
|
||||
Americas hotel and room count
|
Change over
|
Change over
|
|||
2013
30 June
|
2012
31 December
|
2013
30 June
|
2012
31 December
|
||
Analysed by brand
|
|||||
InterContinental
|
51
|
(2)
|
17,443
|
(313)
|
|
Crowne Plaza
|
177
|
(6)
|
47,273
|
(1,457)
|
|
Holiday Inn*
|
808
|
(12)
|
143,662
|
(2,999)
|
|
Holiday Inn Express
|
1,961
|
30
|
171,513
|
3,115
|
|
Staybridge Suites
|
185
|
2
|
19,965
|
178
|
|
Candlewood Suites
|
304
|
5
|
29,083
|
408
|
|
Hotel Indigo
|
37
|
-
|
4,340
|
33
|
|
Other
|
80
|
31
|
19,226
|
3,923
|
|
____
|
____
|
______
|
_____
|
||
Total
|
3,603
|
48
|
452,505
|
2,888
|
|
____
|
____
|
______
|
_____
|
||
Analysed by ownership type
|
|||||
Franchised
|
3,382
|
28
|
409,955
|
2,106
|
|
Managed
|
216
|
20
|
40,148
|
565
|
|
Owned and leased
|
5
|
-
|
2,402
|
217
|
|
____
|
____
|
______
|
_____
|
||
Total
|
3,603
|
48
|
452,505
|
2,888
|
|
____
|
____
|
______
|
_____
|
|
|
|
* Includes 10 Holiday Inn Club Vacations (3,701 rooms) and 18 Holiday Inn Resort properties (4,572 rooms) (2012: 10 Holiday Inn Club Vacations (3,701 rooms) and 17 Holiday Inn Resort properties (4,240 rooms)).
|
Hotels
|
Rooms
|
||||
Americas pipeline
|
Change over
|
Change over
|
|||
2013
30 June
|
2012
31 December
|
2013
30 June
|
2012
31 December
|
||
Analysed by brand
|
|||||
InterContinental
|
6
|
2
|
1,427
|
502
|
|
Crowne Plaza
|
18
|
2
|
4,121
|
384
|
|
Holiday Inn*
|
132
|
(7)
|
18,155
|
(672)
|
|
Holiday Inn Express
|
358
|
13
|
33,606
|
1,218
|
|
Staybridge Suites
|
68
|
4
|
7,102
|
454
|
|
Candlewood Suites
|
83
|
5
|
7,235
|
493
|
|
Hotel Indigo
|
20
|
(3)
|
2,651
|
(425)
|
|
EVEN Hotels
|
3
|
2
|
541
|
311
|
|
Other
|
3
|
3
|
264
|
264
|
|
____
|
____
|
______
|
_____
|
||
Total
|
691
|
21
|
75,102
|
2,529
|
|
____
|
____
|
______
|
_____
|
||
Analysed by ownership type
|
|||||
Franchised
|
674
|
15
|
71,959
|
1,669
|
|
Managed
|
16
|
5
|
2,982
|
699
|
|
Owned and Leased
|
1
|
1
|
161
|
161
|
|
____
|
____
|
______
|
_____
|
||
Total
|
691
|
21
|
75,102
|
2,529
|
|
____
|
____
|
______
|
_____
|
|
* Includes 6 Holiday Inn Resort properties (792 rooms) (2012: 5 Holiday Inn Resort properties (640 rooms)).
|
6 months ended 30 June
|
|||||
Europe results
|
2013
|
2012
|
%
|
||
$m
|
$m
|
change
|
|||
Revenue
|
|||||
Franchised
|
53
|
42
|
26.2
|
||
Managed
|
72
|
71
|
1.4
|
||
Owned and leased
|
81
|
93
|
(12.9)
|
||
____
|
____
|
____
|
|||
Total
|
206
|
206
|
-
|
||
____
|
____
|
____
|
|||
Operating profit before exceptional items
|
|||||
Franchised
|
41
|
31
|
32.3
|
||
Managed
|
12
|
15
|
(20.0)
|
||
Owned and leased
|
17
|
20
|
(15.0)
|
||
____
|
____
|
_____
|
|||
70
|
66
|
6.1
|
|||
Regional overheads
|
(17)
|
(16)
|
(6.3)
|
||
____
|
____
|
____
|
|||
Total
|
53
|
50
|
6.0
|
||
____
|
____
|
____
|
|||
Hotels
|
Rooms
|
||||
Europe hotel and room count
|
Change over
|
Change over
|
|||
2013
30 June
|
2012
31 December
|
2013
30 June
|
2012
31 December
|
||
Analysed by brand
|
|||||
InterContinental
|
30
|
-
|
9,307
|
(87)
|
|
Crowne Plaza
|
83
|
(1)
|
19,338
|
(228)
|
|
Holiday Inn*
|
280
|
(8)
|
45,320
|
(1,290)
|
|
Holiday Inn Express
|
211
|
(1)
|
24,895
|
(8)
|
|
Staybridge Suites
|
4
|
-
|
605
|
-
|
|
Hotel Indigo
|
11
|
1
|
1,025
|
76
|
|
____
|
____
|
______
|
_____
|
||
Total
|
619
|
(9)
|
100,490
|
(1,537)
|
|
____
|
____
|
______
|
_____
|
||
Analysed by ownership type
|
|||||
Franchised
|
520
|
(8)
|
78,575
|
(1,324)
|
|
Managed
|
98
|
-
|
21,445
|
234
|
|
Owned and leased
|
1
|
(1)
|
470
|
(447)
|
|
____
|
____
|
______
|
_____
|
||
Total
|
619
|
(9)
|
100,490
|
(1,537)
|
|
____
|
____
|
______
|
_____
|
|
|
|
* Includes 2 Holiday Inn Resort properties (212 rooms) (2012: 3 Holiday Inn Resort properties (362 rooms)).
|
Hotels
|
Rooms
|
||||
Europe pipeline
|
Change over
|
Change over
|
|||
2013
30 June
|
2012
31 December
|
2013
30 June
|
2012
31 December
|
||
Analysed by brand
|
|||||
InterContinental
|
1
|
(1)
|
216
|
(188)
|
|
Crowne Plaza
|
11
|
(1)
|
2,566
|
(203)
|
|
Holiday Inn
|
23
|
3
|
4,628
|
361
|
|
Holiday Inn Express
|
43
|
-
|
6,097
|
(187)
|
|
Staybridge Suites
|
1
|
-
|
168
|
-
|
|
Hotel Indigo
|
14
|
1
|
1,415
|
123
|
|
____
|
____
|
______
|
_____
|
||
Total
|
93
|
2
|
15,090
|
(94)
|
|
____
|
____
|
______
|
_____
|
||
Analysed by ownership type
|
|||||
Franchised
|
84
|
1
|
11,780
|
(406)
|
|
Managed
|
9
|
1
|
3,310
|
312
|
|
____
|
____
|
______
|
_____
|
||
Total
|
93
|
2
|
15,090
|
(94)
|
|
____
|
____
|
______
|
_____
|
6 months ended 30 June
|
|||||
AMEA results
|
2013
|
2012
|
%
|
||
$m
|
$m
|
change
|
|||
Revenue
|
|||||
Franchised
|
8
|
10
|
(20.0)
|
||
Managed
|
73
|
75
|
(2.7)
|
||
Owned and leased
|
21
|
23
|
(8.7)
|
||
____
|
____
|
_____
|
|||
Total
|
102
|
108
|
(5.6)
|
||
____
|
____
|
____
|
|||
Operating profit before exceptional items
|
|||||
Franchised
|
6
|
6
|
-
|
||
Managed
|
45
|
42
|
7.1
|
||
Owned and leased
|
1
|
2
|
(50.0)
|
||
____
|
___
|
_____
|
|||
52
|
50
|
4.0
|
|||
Regional overheads
|
(11)
|
(10)
|
(10.0)
|
||
____
|
____
|
____
|
|||
Total
|
41
|
40
|
2.5
|
||
____
|
____
|
_____
|
|||
Hotels
|
Rooms
|
||||
AMEA hotel and room count
|
2013
|
Change
over 2012
|
2013
|
Change
over 2012
|
|
30 June
|
31 December
|
30 June
|
31 December
|
||
Analysed by brand
|
|||||
InterContinental
|
66
|
1
|
21,016
|
225
|
|
Crowne Plaza
|
64
|
(1)
|
18,490
|
(69)
|
|
Holiday Inn*
|
75
|
-
|
17,256
|
(184)
|
|
Holiday Inn Express
|
12
|
-
|
2,877
|
-
|
|
Staybridge Suites
|
2
|
-
|
304
|
-
|
|
Other
|
11
|
(2)
|
2,168
|
(598)
|
|
____
|
____
|
______
|
_____
|
||
Total
|
230
|
(2)
|
62,111
|
(626)
|
|
____
|
____
|
______
|
_____
|
||
Analysed by ownership type
|
|||||
Franchised
|
48
|
-
|
11,121
|
261
|
|
Managed
|
180
|
(2)
|
50,403
|
(887)
|
|
Owned and leased
|
2
|
-
|
587
|
-
|
|
____
|
____
|
______
|
_____
|
||
Total
|
230
|
(2)
|
62,111
|
(626)
|
|
____
|
____
|
______
|
_____
|
|
|
|
* Includes 13 Holiday Inn Resort properties (2,638 rooms) (2012: 14 Holiday Inn Resort properties (3,311 rooms)).
|
Hotels
|
Rooms
|
||||
AMEA pipeline
|
2013
|
Change
over 2012
|
2013
|
Change
over 2012
|
|
30 June
|
31 December
|
30 June
|
31 December
|
||
Analysed by brand
|
|||||
InterContinental
|
20
|
-
|
5,365
|
(1)
|
|
Crowne Plaza
|
16
|
(2)
|
4,622
|
(723)
|
|
Holiday Inn*
|
48
|
1
|
11,358
|
463
|
|
Holiday Inn Express
|
37
|
2
|
7,371
|
280
|
|
Staybridge Suites
|
7
|
1
|
908
|
180
|
|
Hotel Indigo
|
7
|
1
|
1,212
|
280
|
|
____
|
____
|
______
|
_____
|
||
Total
|
135
|
3
|
30,836
|
479
|
|
____
|
____
|
______
|
_____
|
||
Analysed by ownership type
|
|||||
Franchised
|
4
|
2
|
742
|
317
|
|
Managed
|
131
|
1
|
30,094
|
162
|
|
____
|
___
|
______
|
_____
|
||
Total
|
135
|
3
|
30,836
|
479
|
|
____
|
____
|
______
|
_____
|
|
|
|
* Includes 5 Holiday Inn Resort properties (1,301 rooms) (2012: 4 Holiday Inn Resort properties (900 rooms)).
|
6 months ended 30 June
|
|||||
Greater China results
|
2013
|
2012
|
%
|
||
$m
|
$m
|
change
|
|||
Revenue
|
|||||
Franchised
|
2
|
1
|
100.0
|
||
Managed
|
41
|
40
|
2.5
|
||
Owned and leased
|
69
|
67
|
3.0
|
||
____
|
____
|
_____
|
|||
Total
|
112
|
108
|
3.7
|
||
____
|
____
|
____
|
|||
Operating profit before exceptional items
|
|||||
Franchised
|
2
|
2
|
-
|
||
Managed
|
23
|
22
|
4.5
|
||
Owned and leased
|
22
|
21
|
4.8
|
||
____
|
____
|
_____
|
|||
47
|
45
|
4.4
|
|||
Regional overheads
|
(11)
|
(9)
|
(22.2)
|
||
____
|
____
|
____
|
|||
Total
|
36
|
36
|
-
|
||
____
|
____
|
_____
|
|||
Hotels
|
Rooms
|
||||
Greater China hotel and room count
|
2013
|
Change
over 2012
|
2013
|
Change
over 2012
|
|
30 June
|
31 December
|
30 June
|
31 December
|
||
Analysed by brand
|
|||||
InterContinental
|
23
|
1
|
9,514
|
141
|
|
Crowne Plaza
|
62
|
2
|
22,279
|
827
|
|
Holiday Inn*
|
64
|
-
|
20,874
|
97
|
|
Holiday Inn Express
|
38
|
1
|
9,650
|
197
|
|
Hotel Indigo
|
4
|
1
|
543
|
138
|
|
Other
|
-
|
(1)
|
-
|
(141)
|
|
____
|
____
|
______
|
_____
|
||
Total
|
191
|
4
|
62,860
|
1,259
|
|
____
|
____
|
______
|
_____
|
||
Analysed by ownership type
|
|||||
Franchised
|
4
|
-
|
2,184
|
-
|
|
Managed
|
186
|
4
|
60,173
|
1,259
|
|
Owned and leased
|
1
|
-
|
503
|
-
|
|
____
|
____
|
______
|
_____
|
||
Total
|
191
|
4
|
62,860
|
1,259
|
|
____
|
____
|
______
|
_____
|
|
|
|
* Includes 3 Holiday Inn Resort properties (893 rooms) (2012: 3 Holiday Inn Resort properties (893 rooms)).
|
Hotels
|
Rooms
|
||||
Greater China pipeline
|
2013
|
Change
over 2012
|
2013
|
Change
over 2012
|
|
30 June
|
31 December
|
30 June
|
31 December
|
||
Analysed by brand
|
|||||
InterContinental
|
25
|
3
|
11,610
|
2,592
|
|
Crowne Plaza
|
52
|
-
|
18,508
|
(824)
|
|
Holiday Inn*
|
42
|
5
|
12,352
|
1,353
|
|
Holiday Inn Express
|
35
|
6
|
8,237
|
2,240
|
|
Hotel Indigo
|
6
|
1
|
760
|
191
|
|
HUALUXE
|
19
|
4
|
6,264
|
1,360
|
|
Other
|
-
|
-
|
-
|
(97)
|
|
____
|
____
|
______
|
_____
|
||
Total
|
179
|
19
|
57,731
|
6,815
|
|
____
|
____
|
______
|
_____
|
||
Analysed by ownership type
|
|||||
Managed
|
179
|
19
|
57,731
|
6,815
|
|
____
|
____
|
______
|
_____
|
||
Total
|
179
|
19
|
57,731
|
6,815
|
|
____
|
____
|
______
|
_____
|
|
|
|
* Includes 4 Holiday Inn Resort properties (1,200 rooms) (2012: 3 Holiday Inn Resort properties (850 rooms)).
|
· political and economic developments;
|
|
· events that adversely impact domestic or international travel;
|
|
· the hotel industry supply and demand cycle;
· the dependency on a wide range of external stakeholders and business partners;
|
|
· identifying, securing and retaining franchise and management agreements;
|
|
· changing technology and systems;
|
|
· the reputation of its brands and the protection of intellectual property rights;
· the reliance upon its proprietary reservations system and is exposed to the risk of failures in the system and increased competition in reservations infrastructure;
· information security and data privacy;
· safety security and crisis management;
|
|
· requiring the right people, skills and capability to manage growth and change;
|
|
· compliance with existing and changing regulations across numerous countries, territories and jurisdictions;
|
|
· litigation;
· corporate responsibility;
|
|
· its financial stability, ability to borrow and satisfy debt covenants;
|
|
· funding in relation to the defined benefits under its pension plans; and
|
|
· difficulties insuring the business.
|
|
· The condensed set of Financial Statements has been prepared in accordance with IAS 34;
|
|
· The Interim Management Report includes a fair review of the important events during the first six months and a description of the principal risks and uncertainties for the remaining six months of the year, as required by DTR 4.2.7R; and
|
|
· The Interim Management Report includes a fair review of related party transactions and changes therein, as required by DTR 4.2.8R.
|
6 months ended 30 June 2013
|
6 months ended 30 June 2012
(restated*)
|
||||||
Before
exceptional
items
|
Exceptional
items
(note 4)
|
Total
|
Before
exceptional
items
|
Exceptional
items
(note 4)
|
Total
|
||
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||
Continuing operations
|
|||||||
Revenue (note 3)
|
936
|
-
|
936
|
878
|
-
|
878
|
|
Cost of sales
|
(377)
|
-
|
(377)
|
(377)
|
-
|
(377)
|
|
Administrative expenses
|
(182)
|
(13)
|
(195)
|
(178)
|
-
|
(178)
|
|
Share of profits of associates and joint ventures
|
-
|
7
|
7
|
2
|
-
|
2
|
|
Other operating income and expenses
|
1
|
166
|
167
|
2
|
-
|
2
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
378
|
160
|
538
|
327
|
-
|
327
|
||
Depreciation and amortisation
|
(40)
|
-
|
(40)
|
(46)
|
-
|
(46)
|
|
Impairment
|
-
|
-
|
-
|
-
|
23
|
23
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
Operating profit (note 3)
|
338
|
160
|
498
|
281
|
23
|
304
|
|
Financial income
|
3
|
-
|
3
|
2
|
-
|
2
|
|
Financial expenses
|
(39)
|
-
|
(39)
|
(27)
|
-
|
(27)
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
Profit before tax
|
302
|
160
|
462
|
256
|
23
|
279
|
|
Tax (note 5)
|
(93)
|
(28)
|
(121)
|
(74)
|
66
|
(8)
|
|
_____
|
____
|
____
|
_____
|
____
|
____
|
||
Profit for the period from continuing operations
|
209
|
132
|
341
|
182
|
89
|
271
|
|
====
|
====
|
====
|
====
|
====
|
====
|
||
Attributable to:
|
|||||||
Equity holders of the parent
|
208
|
132
|
340
|
182
|
89
|
271
|
|
Non-controlling interest
|
1
|
-
|
1
|
-
|
-
|
-
|
|
____
|
____
|
____
|
____
|
____
|
____
|
||
209
|
132
|
341
|
182
|
89
|
271
|
||
====
|
====
|
====
|
====
|
====
|
====
|
||
Earnings per ordinary share
(note 6)
|
|||||||
Continuing and total operations:
|
|||||||
Basic
|
127.8¢
|
93.4¢
|
|||||
Diluted
|
126.4¢
|
91.9¢
|
|||||
Adjusted
|
78.2¢
|
62.8¢
|
|||||
Adjusted diluted
|
77.3¢
|
61.7¢
|
|||||
====
|
====
|
====
|
====
|
||||
*
|
Restated for the adoption of IAS19R 'Employee Benefits' (see note 1)
|
2013
6 months ended 30 June
$m
|
2012
6 months ended 30 June
(restated*)
$m
|
||
Profit for the period
|
341
|
271
|
|
Other comprehensive income
|
|||
Items that may be subsequently reclassified to profit or loss:
|
|||
Available-for-sale financial assets:
|
|||
Gains/(losses) on valuation
|
14
|
(4)
|
|
Exchange differences:
|
|||
On retranslation of foreign operations, net of related tax credit of $2m (2012 $1m)
|
(34)
|
(9)
|
|
Losses reclassified to profit on hotel disposal
|
46
|
-
|
|
____
|
____
|
||
26
|
(13)
|
||
Items that will not be reclassified to profit or loss:
|
|||
Defined benefit pension plans:
|
|||
Actuarial (losses)/gains, including related tax charge of $9m (2012 credit of $1m)
|
(22)
|
1
|
|
Change in asset restriction on plans in surplus and liability in respect of funding commitments, net of a related tax charge of $1m (2012 credit of $13m)
|
9
|
12
|
|
Tax related to pension contributions
|
1
|
1
|
|
____
|
____
|
||
(12)
|
14
|
||
____
|
____
|
||
Total other comprehensive income for the period
|
14
|
1
|
|
____
|
____
|
||
Total comprehensive income for the period
|
355
|
272
|
|
====
|
====
|
||
Attributable to:
|
|||
Equity holders of the parent
|
355
|
272
|
|
Non-controlling interest
|
-
|
-
|
|
____
|
____
|
||
355
|
272
|
||
====
|
====
|
*
|
Restated for the adoption of IAS19R 'Employee Benefits' (see note 1)
|
6 months ended 30 June 2013
|
|||||
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total equity
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
At beginning of the period
|
179
|
(2,652)
|
2,781
|
9
|
317
|
Total comprehensive income for the period
|
-
|
27
|
328
|
-
|
355
|
Issue of ordinary shares
|
4
|
-
|
-
|
-
|
4
|
Repurchase of shares
|
-
|
-
|
(137)
|
-
|
(137)
|
Movement in shares in employee share trusts
|
-
|
31
|
(60)
|
-
|
(29)
|
Equity-settled share-based cost
|
-
|
-
|
13
|
-
|
13
|
Tax related to share schemes
|
-
|
-
|
9
|
-
|
9
|
Equity dividends paid
|
-
|
-
|
(115)
|
(1)
|
(116)
|
Exchange adjustments
|
(11)
|
11
|
-
|
-
|
-
|
_____
|
_____
|
____
|
____
|
____
|
|
At end of the period
|
172
|
(2,583)
|
2,819
|
8
|
416
|
=====
|
=====
|
====
|
====
|
====
|
6 months ended 30 June 2012
|
|||||
Equity share capital
|
Other reserves*
|
Retained earnings
|
Non-controlling interest
|
Total equity
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
At beginning of the period
|
162
|
(2,650)
|
3,035
|
8
|
555
|
Total comprehensive income for the period
|
-
|
(13)
|
285
|
-
|
272
|
Issue of ordinary shares
|
7
|
-
|
-
|
-
|
7
|
Movement in shares in employee share trusts
|
-
|
18
|
(63)
|
-
|
(45)
|
Equity-settled share-based cost
|
-
|
-
|
13
|
-
|
13
|
Tax related to share schemes
|
-
|
-
|
14
|
-
|
14
|
Equity dividends paid
|
-
|
-
|
(113)
|
-
|
(113)
|
Share of reserve in equity accounted investment
|
-
|
-
|
5
|
-
|
5
|
Exchange adjustments
|
1
|
(1)
|
-
|
-
|
-
|
_____
|
_____
|
____
|
____
|
____
|
|
At end of the period
|
170
|
(2,646)
|
3,176
|
8
|
708
|
=====
|
=====
|
====
|
====
|
====
|
*
|
Other reserves comprise the capital redemption reserve, shares held by employee share trusts, other reserves, unrealised gains and losses reserve and currency translation reserve.
|
2013
30 June
|
2012
30 June
|
2012
31 December
|
|
$m
|
$m
|
$m
|
|
ASSETS
|
|||
Property, plant and equipment
|
1,079
|
1,336
|
1,056
|
Goodwill
|
83
|
92
|
93
|
Intangible assets
|
408
|
342
|
354
|
Investment in associates and joint ventures
|
87
|
90
|
84
|
Retirement benefit assets
|
78
|
26
|
99
|
Other financial assets
|
260
|
145
|
155
|
Non-current tax receivable
|
23
|
42
|
24
|
Deferred tax assets
|
161
|
145
|
204
|
_____
|
_____
|
_____
|
|
Total non-current assets
|
2,179
|
2,218
|
2,069
|
_____
|
_____
|
_____
|
|
Inventories
|
4
|
4
|
4
|
Trade and other receivables
|
518
|
465
|
422
|
Current tax receivable
|
4
|
4
|
31
|
Derivative financial instruments
|
-
|
-
|
2
|
Other financial assets
|
5
|
5
|
6
|
Cash and cash equivalents
|
396
|
70
|
195
|
_____
|
_____
|
_____
|
|
Total current assets
|
927
|
548
|
660
|
Non-current assets classified as held for sale
|
226
|
218
|
534
|
______
|
______
|
______
|
|
Total assets (note 3)
|
3,332
|
2,984
|
3,263
|
=====
|
=====
|
=====
|
|
LIABILITIES
|
|||
Loans and other borrowings
|
(16)
|
(21)
|
(16)
|
Derivative financial instruments
|
-
|
(1)
|
-
|
Trade and other payables
|
(691)
|
(671)
|
(709)
|
Provisions
|
(4)
|
(1)
|
(1)
|
Current tax payable
|
(43)
|
(76)
|
(54)
|
_____
|
_____
|
_____
|
|
Total current liabilities
|
(754)
|
(770)
|
(780)
|
_____
|
_____
|
_____
|
|
Loans and other borrowings
|
(1,206)
|
(588)
|
(1,242)
|
Derivative financial instruments
|
(42)
|
(37)
|
(19)
|
Retirement benefit obligations
|
(161)
|
(192)
|
(187)
|
Trade and other payables
|
(585)
|
(527)
|
(563)
|
Provisions
|
-
|
(1)
|
(1)
|
Deferred tax liabilities
|
(106)
|
(101)
|
(93)
|
_____
|
_____
|
_____
|
|
Total non-current liabilities
|
(2,100)
|
(1,446)
|
(2,105)
|
Liabilities classified as held for sale
|
(62)
|
(60)
|
(61)
|
_____
|
_____
|
_____
|
|
Total liabilities
|
(2,916)
|
(2,276)
|
(2,946)
|
=====
|
=====
|
=====
|
|
Net assets
|
416
|
708
|
317
|
=====
|
=====
|
=====
|
|
EQUITY
|
|||
Equity share capital
|
172
|
170
|
179
|
Capital redemption reserve
|
11
|
10
|
11
|
Shares held by employee share trusts
|
(15)
|
(9)
|
(48)
|
Other reserves
|
(2,892)
|
(2,894)
|
(2,901)
|
Unrealised gains and losses reserve
|
86
|
67
|
72
|
Currency translation reserve
|
227
|
180
|
214
|
Retained earnings
|
2,819
|
3,176
|
2,781
|
______
|
______
|
______
|
|
IHG shareholders' equity
|
408
|
700
|
308
|
Non-controlling interest
|
8
|
8
|
9
|
______
|
______
|
______
|
|
Total equity
|
416
|
708
|
317
|
=====
|
=====
|
=====
|
2013
6 months ended
30 June
|
2012
6 months ended
30 June
(restated*)
|
||||
$m
|
$m
|
||||
Profit for the period
|
341
|
271
|
|||
Adjustments for:
|
|||||
Net financial expenses
|
36
|
25
|
|||
Income tax charge
|
121
|
8
|
|||
Depreciation and amortisation
|
40
|
46
|
|||
Impairment
|
-
|
(23)
|
|||
Other exceptional operating items
|
(160)
|
-
|
|||
Equity-settled share-based cost
|
11
|
11
|
|||
Other items
|
2
|
(2)
|
|||
_____
|
_____
|
||||
Operating cash flow before movements in working capital
|
391
|
336
|
|||
Net change in loyalty programme liability and System Fund surplus
|
99
|
118
|
|||
Other changes in net working capital
|
(198)
|
(208)
|
|||
Utilisation of provisions, net of cost
|
2
|
(12)
|
|||
Retirement benefit contributions, net of cost
|
(9)
|
(3)
|
|||
Cash flows relating to exceptional operating items
|
(9)
|
-
|
|||
_____
|
_____
|
||||
Cash flow from operations
|
276
|
231
|
|||
Interest paid
|
(11)
|
(13)
|
|||
Interest received
|
1
|
1
|
|||
Tax paid on operating activities
|
(40)
|
(38)
|
|||
_____
|
_____
|
||||
Net cash from operating activities
|
226
|
181
|
|||
_____
|
_____
|
||||
Cash flow from investing activities
|
|||||
Purchase of property, plant and equipment
|
(62)
|
(12)
|
|||
Purchase of intangible assets
|
(39)
|
(32)
|
|||
Investment in other financial assets
|
(100)
|
-
|
|||
Investment in associates and joint ventures
|
(7)
|
(1)
|
|||
Disposal of hotel assets, net of costs
|
462
|
-
|
|||
Proceeds from other financial assets
|
16
|
3
|
|||
Distribution from associate on sale of hotel
|
17
|
-
|
|||
Tax paid on disposals
|
(5)
|
(2)
|
|||
_____
|
_____
|
||||
Net cash from investing activities
|
282
|
(44)
|
|||
_____
|
_____
|
||||
Cash flow from financing activities
|
|||||
Proceeds from the issue of share capital
|
4
|
7
|
|||
Purchase of own shares
|
(127)
|
-
|
|||
Purchase of own shares by employee share trusts
|
(32)
|
(45)
|
|||
Dividends paid to shareholders
|
(115)
|
(113)
|
|||
Dividends paid to non-controlling interests
|
(1)
|
-
|
|||
Decrease in other borrowings
|
(1)
|
(99)
|
|||
_____
|
_____
|
||||
Net cash from financing activities
|
(272)
|
(250)
|
|||
_____
|
_____
|
||||
Net movement in cash and cash equivalents in the period
|
236
|
(113)
|
|||
Cash and cash equivalents at beginning of the period
|
195
|
182
|
|||
Exchange rate effects
|
(35)
|
1
|
|||
_____
|
_____
|
||||
Cash and cash equivalents at end of the period
|
396
|
70
|
|||
=====
|
=====
|
||||
*
|
Restated for the adoption of IAS19R 'Employee Benefits' (see note 1)
|
||||
1.
|
Basis of preparation
|
These condensed interim financial statements have been prepared in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority and IAS 34 'Interim Financial Reporting'. Other than the changes listed below, they have been prepared on a consistent basis using the accounting policies set out in the InterContinental Hotels Group PLC (the Group or IHG) Annual Report and Financial Statements for the year ended 31 December 2012.
With effect from 1 January 2013, the Group has adopted IAS 19 (Revised) 'Employee Benefits' which introduces a number of changes to accounting for defined benefit plans, including the removal of expected returns on plan assets from the income statement. Instead, there is a requirement to recognise interest on the net defined benefit asset/liability (after any asset restrictions), calculated using the discount rate used to measure the defined benefit obligation. This change in accounting policy has required restatements of the Group income statement, Group statement of comprehensive income and Group statement of cash flows for the six months ended 30 June 2012, resulting in an additional charge to operating profit of $5m with an equivalent reduction in actuarial losses in other comprehensive income. The tax impacts of the adjustments are a $1m credit to the income statement with an equivalent charge against the reduced actuarial losses. Basic, diluted, adjusted and adjusted diluted earnings per share are reduced by 1.4, 1.3, 1.3 and 1.4 cents respectively. There has been no change to previously reported retained earnings or balance sheet amounts.
The Group has also adopted IAS 1 (Amendment) 'Presentation of Items of Other Comprehensive Income, which changes the grouping of items presented in the Groups statement of comprehensive income so that items which may be reclassified to profit or loss in the future are presented separately from items that will never be reclassified. The amendment affects presentation only and has had no impact on the Group's financial position or performance.
In addition, with effect from 1 January 2013, the Group has implemented IAS 28 (Amendment) 'Investments in Associates and Joint Ventures', IFRS 10 'Consolidated Financial Statements', IFRS 11 'Joint Arrangements', IFRS 12 'Disclosure of Interests in Other Entities' and IFRS 13 'Fair Value Measurement'. The adoption of these standards has had no material impact on the Group's financial performance or position and there has been no requirement to restate prior year comparatives. IFRS 13 introduces new disclosure requirements for interim financial statements and these are provided in note 10.
These condensed interim financial statements are unaudited and do not constitute statutory accounts of the Group within the meaning of Section 435 of the Companies Act 2006. The auditors have carried out a review of the financial information in accordance with the guidance contained in ISRE 2410 (UK and Ireland) 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board.
The financial information for the year ended 31 December 2012 has been extracted from the Group's published financial statements for that year which were prepared in accordance with IFRSs as adopted by the European Union and contain an unqualified audit report and which have been filed with the Registrar of Companies.
|
2.
|
Exchange rates
|
The results of operations have been translated into US dollars at the average rates of exchange for the period. In the case of sterling, the translation rate is $1= £0.65 (2012 $1=£0.63). In the case of the euro, the translation rate is $1 = €0.76 (2012 $1 = €0.77).
Assets and liabilities have been translated into US dollars at the rates of exchange on the last day of the period. In the case of sterling, the translation rate is $1=£0.66 (2012 30 June $1 = £0.64; 31 December $1 = £0.62). In the case of the euro, the translation rate is $1 = €0.77 (2012 30 June $1 = €0.79; 31 December $1 = €0.76).
|
3.
|
Segmental information
|
||
Revenue
|
2013
6 months ended
30 June
|
2012
6 months ended
30 June
|
|
$m
|
$m
|
||
Americas
|
457
|
400
|
|
Europe
|
206
|
206
|
|
AMEA
|
102
|
108
|
|
Greater China
|
112
|
108
|
|
Central
|
59
|
56
|
|
____
|
____
|
||
Total revenue
|
936
|
878
|
|
====
|
====
|
||
All results relate to continuing operations.
|
Profit
|
2013
6 months ended
30 June
$m
|
2012
6 months ended
30 June
(restated*)
$m
|
|
Americas
|
282
|
233
|
|
Europe
|
53
|
50
|
|
AMEA
|
41
|
40
|
|
Greater China
|
36
|
36
|
|
Central
|
(74)
|
(78)
|
|
____
|
____
|
||
Reportable segments' operating profit
|
338
|
281
|
|
Exceptional operating items (note 4)
|
160
|
23
|
|
____
|
____
|
||
Operating profit
|
498
|
304
|
|
Financial income
|
3
|
2
|
|
Financial expenses
|
(39)
|
(27)
|
|
____
|
____
|
||
Profit before tax
|
462
|
279
|
|
====
|
====
|
||
All results relate to continuing operations.
|
*
|
Restated for the adoption of IAS19R 'Employee Benefits' (see note 1).
|
Assets
|
2013
30 June
$m
|
2012
30 June
$m
|
2012
31 December
$m
|
|
Americas
|
1,104
|
988
|
957
|
|
Europe
|
638
|
828
|
928
|
|
AMEA
|
265
|
279
|
282
|
|
Greater China
|
383
|
390
|
390
|
|
Central
|
358
|
238
|
250
|
|
____
|
____
|
____
|
||
Segment assets
|
2,748
|
2,723
|
2,807
|
|
Unallocated assets:
|
||||
Non-current tax receivable
|
23
|
42
|
24
|
|
Deferred tax assets
|
161
|
145
|
204
|
|
Current tax receivable
|
4
|
4
|
31
|
|
Derivative financial instruments
|
-
|
-
|
2
|
|
Cash and cash equivalents
|
396
|
70
|
195
|
|
____
|
____
|
____
|
||
Total assets
|
3,332
|
2,984
|
3,263
|
|
====
|
====
|
====
|
4.
|
Exceptional items
|
|||||
2013
6 months ended
30 June
$m
|
2012
6 months ended
30 June
$m
|
|||||
Continuing operations:
|
||||||
Exceptional operating items
|
||||||
Administrative expenses:
|
||||||
Litigation (a)
|
(10)
|
-
|
||||
Loyalty programme rebranding costs
|
(3)
|
-
|
||||
____
|
____
|
|||||
(13)
|
-
|
|||||
Share of profits of associates and joint ventures:
|
||||||
Share of gain on disposal of a hotel (b)
|
7
|
-
|
||||
Other operating income and expenses:
|
||||||
Gain on disposal of a hotel (c)
|
166
|
-
|
||||
Impairment:
|
||||||
Reversals of previously recorded impairment:
|
||||||
Property, plant and equipment (d)
|
-
|
23
|
||||
____
|
____
|
|||||
160
|
23
|
|||||
====
|
====
|
|||||
Tax
|
||||||
Tax on exceptional operating items
|
(10)
|
(13)
|
||||
Exceptional tax (e)
|
(18)
|
79
|
||||
____
|
____
|
|||||
(28)
|
66
|
|||||
====
|
====
|
|||||
These items are treated as exceptional by reason of their size or nature.
|
||
a)
|
Relates to an agreed settlement in respect of a lawsuit filed against the Group.
|
|
b)
|
Relates to the sale of a hotel by an associate in the Americas region.
|
|
c)
|
Relates to the sale of the InterContinental London Park Lane.
|
|
d)
|
Related to the reversal of a previously recorded impairment charge on a North American hotel.
|
|
e)
|
In 2013 represents, primarily, deferred tax related to the expected repatriation of earnings consequential upon the disposal of the InterContinental London Park Lane. In 2012, represented the release of provisions which were exceptional by reason of their size or nature relating to tax matters which had been settled or in respect of which the relevant statutory limitation period had expired, together with the recognition of deferred tax assets as a result of the associated reduction in future uncertainty as to their recoverability.
|
5.
|
Tax
|
The tax charge on profit for the period from continuing operations, excluding the impact of exceptional items (note 4), has been calculated using a tax rate of 31% (2012 29%) analysed as follows.
|
2013
|
2013
|
2013
|
2012
|
2012
|
2012
|
||||||
6 months ended 30 June
|
Profit
$m
|
Tax
$m
|
Tax
rate
|
Profit
(restated*)
$m
|
Tax
(restated*)
$m
|
Tax
(restated*)
rate
|
|||||
Before exceptional items
|
302
|
(93)
|
31%
|
256
|
(74)
|
29%
|
|||||
Exceptional items
|
160
|
(28)
|
23
|
66
|
|||||||
____
|
____
|
____
|
____
|
||||||||
462
|
(121)
|
279
|
(8)
|
||||||||
====
|
====
|
====
|
====
|
||||||||
Analysed as:
|
|||||||||||
UK tax
|
(13)
|
33
|
|||||||||
Foreign tax
|
(108)
|
(41)
|
|||||||||
____
|
____
|
||||||||||
(121)
|
(8)
|
||||||||||
====
|
====
|
||||||||||
*
|
Restated for the adoption of IAS19R 'Employee Benefits' (see note 1).
|
||||||||||
6.
|
Earnings per ordinary share
|
Basic earnings per ordinary share is calculated by dividing the profit for the period available for IHG equity holders by the weighted average number of ordinary shares, excluding investment in own shares, in issue during the period.
Diluted earnings per ordinary share is calculated by adjusting basic earnings per ordinary share to reflect the notional exercise of the weighted average number of dilutive ordinary share options outstanding during the period.
Adjusted earnings per ordinary share is disclosed in order to show performance undistorted by exceptional items, to give a more meaningful comparison of the Group's performance.
|
Continuing and total operations for the six months ended 30 June
|
2013
|
2012
(restated*)
|
||
Basic earnings per ordinary share
|
||||
Profit available for equity holders ($m)
|
340
|
271
|
||
Basic weighted average number of ordinary shares (millions)
|
266
|
290
|
||
Basic earnings per ordinary share (cents)
|
127.8
|
93.4
|
||
====
|
====
|
|||
Diluted earnings per ordinary share
|
||||
Profit available for equity holders ($m)
|
340
|
271
|
||
Diluted weighted average number of ordinary shares (millions)
|
269
|
295
|
||
Diluted earnings per ordinary share (cents)
|
126.4
|
91.9
|
||
====
|
====
|
|||
Adjusted earnings per ordinary share
|
||||
Profit available for equity holders ($m)
|
340
|
271
|
||
Adjusting items (note 4):
|
||||
Exceptional operating items ($m)
|
(160)
|
(23)
|
||
Tax on exceptional operating items ($m)
|
10
|
13
|
||
Exceptional tax ($m)
|
18
|
(79)
|
||
____
|
____
|
|||
Adjusted earnings ($m)
|
208
|
182
|
||
Basic weighted average number of ordinary shares (millions)
|
266
|
290
|
||
Adjusted earnings per ordinary share (cents)
|
78.2
|
62.8
|
||
====
|
====
|
|||
Diluted weighted average number of ordinary shares (millions)
|
269
|
295
|
||
Adjusted diluted earnings per ordinary share (cents)
|
77.3
|
61.7
|
||
====
|
====
|
The diluted weighted average number of ordinary shares is calculated as:
|
|||||||
2013
millions
|
2012
millions
|
||||||
Basic weighted average number of ordinary shares
|
266
|
290
|
|||||
Dilutive potential ordinary shares - employee share options
|
3
|
5
|
|||||
____
|
____
|
||||||
269
|
295
|
||||||
====
|
====
|
||||||
*
|
Restated for the adoption of IAS19R 'Employee Benefits' (see note 1).
|
||||||
7.
|
Dividends and shareholder returns
|
|||||
2013
cents per share
|
2012
cents per share
|
2013
$m
|
2012
$m
|
|||
Paid during the period:
|
||||||
Final (declared for previous year)
|
43.0
|
39.0
|
115
|
113
|
||
=====
|
=====
|
====
|
====
|
|||
Proposed for the period:
|
||||||
Interim
|
23.0
|
21.0
|
61
|
61
|
||
=====
|
=====
|
====
|
====
|
|||
Under the $500m share buyback programme announced on 7 August 2012, 4,777,504 shares were repurchased in the six months to 30 June 2013 for a consideration of $136m (before transaction costs), increasing the total amount repurchased to $243m. All of the shares repurchased in 2013 were held as Treasury Shares at 30 June 2013, the cost of which has been deducted from retained earnings. There were no Treasury Shares held at 31 December 2012 or earlier.
On 6 August 2013, the Group also announced a special dividend of 133.0 cents per share amounting to approximately $350m payable on 4 October 2013 on shares in issue on 23 August 2013.
|
8.
|
Net debt
|
||||
2013
30 June
|
2012
30 June
|
2012
31 December
|
|||
$m
|
$m
|
$m
|
|||
Cash and cash equivalents
|
396
|
70
|
195
|
||
Loans and other borrowings - current
|
(16)
|
(21)
|
(16)
|
||
Loans and other borrowings - non-current
|
(1,206)
|
(588)
|
(1,242)
|
||
Derivatives hedging debt values*
|
(35)
|
(25)
|
(11)
|
||
____
|
____
|
____
|
|||
Net debt
|
(861)
|
(564)
|
(1,074)
|
||
====
|
====
|
====
|