Whitbread : Annual Report and Accounts 2020/21

ANNUAL REPORT AND ACCOUNTS

2020/21

INTRODUCTION

A focused hotel group

Our unique, vertically-integrated, approach has enabled Premier Inn to grow at a significantly faster pace than the market, deliver a consistently superior customer experience and generate a strong return on capital for shareholders.

As we emerge from the COVID-19 pandemic, Whitbread is well positioned in the UK and Germany, both of which are structurally attractive budget hotel markets with significant growth opportunities.

Whilst the pandemic had a significant impact on our markets throughout the financial year, our robust operating model allowed us to take the necessary actions to steer the business through the crisis, while staying true to our Force for Good beliefs, leaving us in a strong position as we look forward to better times ahead.

Strategic report

2 Our business at a glance

4 COVID-19

1. Chairman's statement

1. Chief Executive's review

1. Our investment case
2. Market review

1. Our business model

1. Our strategy at a glance

1. Strategic update

1. Group Finance Director's review

1. Group HR Director's review

1. Force for Good

1. Stakeholder engagement

1. Non-financialinformation statement
2. Section 172 statement

1. Principal risks and uncertainties

1. Viability statement

Governance

68 Chairman's introduction to corporate governance

1. Board of Directors

1. Executive Committee
2. Corporate governance

1. Audit Committee report

1. Nomination Committee report

1. Remuneration report

1. Remuneration at a glance

1. Remuneration policy

1. Annual report on remuneration

1. Directors' report

1. Directors' responsibility statement
2. Independent auditor's report

Consolidated accounts 2020/21

1. Consolidated income statement

1. Earnings per share
2. Consolidated statement of comprehensive income
3. Consolidated statement of changes in equity
4. Consolidated balance sheet
5. Consolidated cash flow statement
6. Notes to the consolidated financial statements

Whitbread PLC Company accounts 2020/21

1. Company balance sheet
2. Company statement of changes in equity
3. Notes to the Company financial statements

Other information

1. Glossary
2. Alternative performance measures

1. Shareholder services

Financial performance

report Strategic

REVENUE

£590m

2019/20: £2,072m

ADJUSTED OPERATING (LOSS)/PROFIT†

(£487m)

2019/20: £487m

ADJUSTED (LOSS)/PROFIT BEFORE TAX†

(£635m)

2019/20: £358m

ADJUSTED BASIC (LOSS)/EARNINGS PER SHARE†

(288p)

2019/20: 166p

NET DEBT†

(£47m)

2019/20: (£323m)

WE HAVE SET NEW

AMBITIOUS FORCE FOR

GOOD TARGETS FOR

THIS YEAR.

We are aware of the material impact, both positive and negative, that our business activities can have on the planet, our communities and the customers we serve. We began this year with a portfolio of new, ambitious, stretching targets that were set to really make a difference.

 Read more - pages 48 to 55

MARKET SHARE1

11%

2019/20: 7%

STATUTORY OPERATING (LOSS)/PROFIT

(£839m)

2019/20: £409m

STATUTORY (LOSS)/PROFIT BEFORE TAX

(£1,007m)

2019/20: £280m

STATUTORY BASIC (LOSS)/EARNINGS PER SHARE

(482p)

2019/20: 125p

OPERATING CASH FLOW†

(£489m)

2019/20: £555m

CASH AND CASH EQUIVALENTS

£1,256m

2019/20: £503m

TOTAL CASH CAPEX UK†

£132m

2019/20: £320m

TOTAL CASH CAPEX GERMANY†2

£99m

2019/20: £268m

• See pages 206 to 209 for definitions of alternative performance measures.
  1 STR data, revenue share of total UK market.
  2 Includes Middle East and business combinations.

information Other statements Financial Governance

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OUR BUSINESS AT A GLANCE

A unique approach

OUR AMBITION	OUR PURPOSE
To be the world's	To provide quality, affordable hotels
best budget hotel brand	for our guests to help them to live
	and work well and to positively impact
	the world around us. With no barriers
	to entry or limits to ambition, we will
	provide meaningful work, skills and
	career development opportunities
	for our teams
OVERVIEW

UNITED KINGDOM* Read more - pages 20 to 25

At Premier Inn, we're here to help the nation rest easy, whether it's a choice of rooms across our 800+ hotels, comfy beds that guests won't want to leave or food to fuel the start and end of every day.

We've got a range of flexible rates to suit everyone, friendly team members who genuinely care and a level of consistency that ensures everyone knows exactly what they're going to get. It's comfort that everyone can count on.

NUMBER OF ROOMS1	NUMBER OF ROOMS
78,718	IN PIPELINE1
12,256
+0.2%	(5.8)%
2019/20: 78,547	2019/20: 13,011

• Includes one site in each of Jersey, Ireland and the Isle of Man.
  1 As at year-end 25 February 2021.

GERMANY

Read more - pages 26 to 31

Germany provides a significant opportunity for Premier Inn to grow long term and replicate its UK success, with the German market sharing many of the attractive characteristics we see in the UK.

We continue to grow at pace in Germany, with 30 operational hotels and a committed pipeline of 42 hotels. This progress now gives Premier Inn a national footprint and brings us closer to our goal of becoming the number one budget hotel brand in Germany.

NUMBER OF ROOMS1	NUMBER OF ROOMS
4,880	IN PIPELINE1
8,420
+349.8%	(3.3)%
2019/20: 1,085	2019/20: 8,709

1 As at year-end 25 February 2021.

2	WhitbreadAnnual Report and Accounts 2020/21

OUR VALUES

GENUINE

REALLY CARING ABOUT

OUR CUSTOMERS

CONFIDENT

STRIVING TO BE THE BEST

AT WHAT WE DO

COMMITTED

WORKING HARD FOR

EACH OTHER

OPPORTUNITY

	report Strategic
OUR BRANDS	Governance
At Premier Inn we pride ourselves on comfort and quality,	Financial
so whether you're staying for business or leisure, you'll always
enjoy a warm welcome from our friendly teams, as well as
comfortable king-sized beds, ensuite bathrooms, a TV with	statements
Freeview and Wi-Fi in every room.
We have innovated to develop two new hotel brands to cater	Other
for different market segments. Contemporary style combined	information
brilliantly, then take away everything else. You get a small
with great connectivity makes hub by Premier Inn the UK's
most space-efficientdigitally-advanced hotel. Meanwhile,
at ZIP by Premier Inn, our idea is simple. Do the essentials
room, a simple stay and, best of all, a price to match.

All our hotels have a bar and restaurant, either within the hotel or just next door, offering a wide selection of meals and hearty eat-as-much-as-you-like full English and continental breakfasts. Beefeater is one of the UK's best-loved and most well-known restaurant brands and has been welcoming guests for over 40 years. Our newest restaurant brand Cookhouse & Pub is a great place to get together and offers freshly prepared dishes and delicious drinks, with a friendly service and great value. Bar + Block Steakhouse is an informal, all-day dining restaurant with a focus on high-quality steaks and Thyme is Premier Inn's in-house restaurant with

a contemporary British menu.

COMMUNITY

RESPONSIBILITY

A team where everyone can reach their potential

• no barriers to entry and no limitations to ambition

Making a meaningful	Always operating in a way
contribution to the customers	that respects people and
and communities we serve	the planet

 Information on our sustainability programme, Force for Good, is integrated throughout the report and can be found by looking for the logo above

We will be for everyone, championing inclusivity across the organisation and improving diversity

We will have industry-leading training and development schemes

Team member wellbeing will be considered in everything we do

We will make a positive contribution to the communities we serve

Working collaboratively with our teams and supply chain, we will support our charity partners to meet their mission

We will support the wellbeing of our customers

We will source responsibly and with integrity

We will reduce our environmental impact

We will always do business the right way

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