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Group resultsRevenueincreasedby3.8%to$1,835mandoperatingprofitbeforeexceptionalitemsincreasedby9.8%to$614mduringthe12monthsended31December2012.Feerevenue,beingGrouprevenueexcludingrevenuefromownedandleasedhotels,significantliquidateddamagesreceivedin2012and2011andpropertiesthatarestructuredforlegalreasonsasoperatingleases,butwiththesamecharacteristicsasmanagementcontracts,increasedby6.8%whentranslatedatconstantcurrencyandapplying2011exchangerates.The2012resultsreflectcontinuedRevPARgrowthineachoftheregions,withanoverallRevPARincreaseof5.2%,includinga3.2%increaseinaveragedailyrate.TheresultsalsobenefitedfromSystemsizegrowthof2.7%year-on-yearto675,982rooms.GroupRevPARgrowthremainedrobustfortheyear,reflectingfavourablesupplyanddemanddynamicsintheUSover2012,althoughtradingwasalsoaffectedbytheimpactofEurozoneuncertaintyaswellasindustry-widechallengesinGreaterChinainthelatterpartoftheyearrelatedtothepoliticalleadershipchange.Atconstantcurrency,centraloverheadsincreasedfrom$147mto$158min2012($156matactualcurrency),reflectinginvestmentininfrastructureandcapabilitiestosupportthegrowthofthebusiness.During2012,theIHGglobalSystemincreasedby122hotels(17,634rooms).Openingsof226hotels(33,922rooms)weredrivenbycontinuedexpansionintheUS,particularlywithintheHolidayInnbrandfamilywhichopenedmorethan11,000roomsduring2012,andGreaterChina.Thelevelofhotelremovalsfellfrom198hotels(33,078rooms)in2011to104hotels(16,288rooms)in2012,asanticipatedfollowingthecompletionoftheHolidayInnrelaunch.
Attheendof2012,thepipelinetotalled1,053hotels(169,030rooms).ThecontinuedglobaldemandforIHGbrandsisdemonstratedbyover50%ofpipelineroomsbeingoutsideofTheAmericasregion,including30%inGreaterChina.Excluding25hotels(4,796rooms)signedaspartoftheUSgovernment’sPrivatizationofArmyLodgingsinitiativein2011,signingsincreasedfrom331hotels(50,628rooms)to356hotels(53,812rooms).Signingsduring2012included15hotelsfortheHUALUXEHotels&Resortsbrand,aswellasthefirstsigningfortheEVENHotelsbrand.During2012,theopeningof33,922roomscontributedtoanetpipelinedeclineof11,454rooms.Activemanagementoutofthepipelineofdealsthathavebecomedormantornolongerviablereducedthepipelineby31,344rooms,representingadecreaseof11.8%over2011.
Americas resultsRevenueandoperatingprofitbeforeexceptionalitemsincreasedby$7m(0.8%)to$837mandby$35m(7.8%)to$486mrespectively.RevPARincreasedby6.1%,with4.1%growthinaveragedailyrate.USRevPARwasup6.3%in2012despiteuncertaintyregardingthepresidentialelectionandthe‘fiscalcliff’inthelatterpartoftheyear.Franchisedrevenueincreasedby$39m(7.8%)to$541m.Royaltiesgrowthof8.7%wasdrivenbyRevPARgrowthof6.0%,including6.1%forHolidayInnExpress,togetherwithSystemsizegrowthof2.3%.Operatingprofitincreasedby$35m(8.1%)to$466m.Managedrevenuedecreasedby$27m(21.8%)to$97mandoperatingprofitdecreasedby$4m(7.7%)to$48m.Revenueandoperatingprofitincluded$34m(2011$59m)and$nil(2011$1m)respectivelyfrommanagedleases.Excludingpropertiesoperatedunderthis
arrangement,aswellasthebenefitofa$3mliquidateddamagesreceiptin2012anda$10mliquidateddamagesreceiptin2011,revenueandoperatingprofitgrewby$5m(9.1%)and$4m(9.8%)respectively.GrowthwasdrivenbyaRevPARincreaseof7.3%,including9.6%forHolidayInn.Ownedandleasedrevenuedeclinedby$5m(2.5%)to$199mandoperatingprofitgrewby$7m(41.2%)to$24m.Excludingtheimpactofdisposals,revenueincreasedby$4m(2.1%)andoperatingprofitincreasedby$8m(50.0%).TheincreaseinrevenuewasdrivenbyRevPARgrowthof6.3%,offsetbytheimpactofthepartialclosureofanownedhotelintheCaribbean.Theoperatingprofitincreaseof$7mincludeda$1myear-on-yearbenefitfromlowerdepreciationrecordedfortheInterContinentalNewYorkBarclaysincethehotelwascategorisedasheldforsaleinthefirstquarterof2011,afterwhichnodepreciationwascharged,anda$3myear-on-yearbenefitrelatingtoone-offreorganisationcostsatonehotelin2011.
Europe resultsRevenueandoperatingprofitbeforeexceptionalitemsincreasedby$31m(7.7%)to$436mandby$11m(10.6%)to$115mrespectively.RevPARincreasedby1.7%,with1.2%growthinaveragedailyratedespitechallengingeconomicconditionsacrossEurope.Franchisedrevenueincreasedby$5m(5.8%)to$91m,whilstoperatingprofitwasflatat$65m.Atconstantcurrency,revenueincreasedby$8m(9.3%)andoperatingprofitincreasedby$3m(4.6%).Growthwasmainlydrivenbyanincreaseinroyaltiesof2.7%(7.5%atconstantcurrency)reflectingRevPARgrowthof1.8%,togetherwithSystemsizegrowthof4.0%.Managedrevenueincreasedby$29mto$147m(24.6%)andoperatingprofitincreasedby$6m(23.1%)to$32m.
Summary Financial Statement
2012 was another year of significant progress with our preferred Brands driving RevPAR growth of 5.2% which, together with a 2.7% increase in hotel room count, fuelled by our continued expansion in developing markets, drove fees up an impressive 6.8%. As a result, we delivered 10% growth in operating profit before exceptional items and achieved a two percentage point increase in operating margin over last year.
42 IHG Annual Review and Summary Financial Statement 2012
Revenueandoperatingprofitincluded$80m(2011$46m)and$2m(2011$nil)respectivelyfrommanagedleases.Excludingpropertiesoperatedunderthisarrangementandonaconstantcurrencybasis,revenuedecreasedby$1m(1.4%)reflectinga4.3%decreaseinSystemsizepartiallyoffsetbyRevPARgrowthof1.0%.Onthesamebasis,operatingprofitgrewby$5m(19.2%).Intheownedandleasedestate,revenuedecreasedby$3m(1.5%)to$198mandoperatingprofitincreasedby$1m(2.0%)to$50m.Atconstantcurrencyandexcludingtheimpactofdisposals,revenueincreasedby$10m(5.1%)andoperatingprofitincreasedby$4m(8.3%).TheInterContinentalLondonParkLaneandtheInterContinentalParisLeGranddeliveredyear-on-yearRevPARgrowthof8.0%and2.5%respectively.
AMEA resultsRevenueandoperatingprofitbeforeexceptionalitemsincreasedby$2m(0.9%)to$218mandby$4m(4.8%)to$88mrespectively.RevPARincreased4.9%,with1.2%growthinaveragedailyrate,withrobusttradinginSoutheastAsiaandJapan,partlyoffsetbycontinuinguncertaintyimpactingsomemarketsintheMiddleEast.Onbothaconstantandactualcurrencybasis,franchisedrevenuedecreasedby$1m(5.3%)to$18mandoperatingprofitwasflatat$12m.Managedrevenueandoperatingprofitincreasedby$1m(0.7%)to$152mandby$3m(3.4%)to$90mrespectively.Atconstantcurrency,excludingthebenefitofa$6mliquidateddamagesreceiptin2011andafteradjustingforthedisposalofahotelassetandpartnershipinterestinAustralia,whichcontributed$3mtooperatingprofitin2011,revenueandoperatingprofitincreasedby$7m(4.8%)and$11m(14.1%)respectively.RevPARgrowthwas4.6%andalthoughyear-endSystemsizewas7.1%higherthanattheendof2011,duetothephasingofopeningstowardstheendoftheyear,roomsavailableduringtheyeargrewbyonly2.2%.Operatingprofitin2012benefitedfroma$1mincreaseinprofitfromanassociateand$2mloweryear-on-yearbaddebtexpense.Intheownedandleasedestate,revenueandoperatingprofitincreasedby$2m(4.3%)to$48mandby$1m(20.0%)to$6mrespectively.
Greater China resultsRevenueandoperatingprofitbeforeexceptionalitemsincreasedby$25m(12.2%)to$230mandby$14m(20.9%)to$81mrespectively.RevPARincreased5.4%with3.1%growthinaveragedailyrate.
Franchisedrevenueincreasedby$1m(50.0%)to$3mandoperatingprofitby$1m(33.3%)to$4m,boostedbytheopeningofthe1,224-roomHolidayInnMacaoCotaiCentral.Managedrevenueincreasedby$12m(15.6%)to$89mandoperatingprofitincreasedby$8m(18.6%)to$51m.RevPARgrowthof5.6%reflectedcontinuedeconomicgrowthintheregion,althoughthewholeindustrywasaffectedinthelatterpartoftheyearbytheonceinadecadepoliticalleadershipchangeandtheDiaoyu/Senkakuislandsterritorialdispute.TherewasalsocontinuedsignificantSystemsizegrowthforthemanagedestateintheregion(9.7%roomsgrowthin2012following14.2%roomsgrowthin2011).Ownedandleasedrevenueincreasedby$12m(9.5%)to$138mandoperatingprofitincreasedby$8m(21.6%)to$45m,withRevPARgrowthof6.7%attheInterContinentalHongKong.
Central resultsNetcentralcostsincreasedby$9m(6.1%)from$147min2011to$156min2012.Atconstantcurrency,netcentralcostsincreasedby$11m(7.5%).Themovementwasdrivenbyinvestmentininfrastructureandcapabilitiestosupportthegrowthofthebusiness.Centralrevenuemainlycomprisedtechnologyfeeincome.
Other financial itemsExceptionaloperatingitemstotalledanetlossof$4m.Exceptionalgainsincludeda$23mimpairmentreversalandthereleaseofa$9mliabilitynolongerrequired.Exceptionalchargesincluded$16mreorganisationcosts,$2mlossondisposalofaninterestinahoteland$18mwrite-offofsoftware.Netfinancialexpensesdecreasedby$8mto$54mprimarilyduetoloweraveragedebtlevels.Theeffectiverateoftaxonoperatingprofit,excludingtheimpactofexceptionalitems,was27%(201124%).Basicearningsperordinarysharein2012was189.5¢,comparedwith159.2¢in2011.Adjustedearningsperordinarysharewas141.5¢,against130.4¢in2011.TheBoardhasproposedafinaldividendperordinaryshareof43.0¢(27.7p).Withtheinterimdividendperordinaryshareof21.0¢(13.5p),thefull-yeardividendperordinarysharefor2012willtotal64.0¢(41.2p),anincreaseof16%over2011.On22October2012,aspecialdividendperordinaryshareof$1.72(108.4p)waspaidtoshareholders.
This Summary Financial Statement was approved by the Board on 18 February 2013 and signed on its behalf by Tom Singer. It does not contain sufficient information to provide as complete an understanding of the Group’s results and state of affairs as that provided in the Annual Report and Financial Statements 2012. That report may be obtained, free of charge, by writing to IHG or the Company’s Registrar, Equiniti (contact details are provided on page 59).
The auditors have issued an unqualified report on the Financial Statements containing no statement under section 498(2) or 498(3) of the Companies Act 2006. Information concerning Directors’ emoluments is shown on pages 50 to 57.
“We continued to win share by adding rooms to meet growing demand and driving up RevPAR. We have delivered good fee growth of 6.8% for the Group, driven by 2.7% net rooms growth and RevPAR outperformance in our two largest markets, the US and China.”
Tom Singer Chief Financial Officer
Capital structure and liquidity managementDuringtheyear,$472mofcashwasgeneratedfromoperatingactivities,ofwhich$133mwasinvestedincapitalexpenditure.Aftershareholderreturnsof$786m,includinga$505mspecialdividendand$107mofsharebuybacks,netdebtat31December2012was$1,074m,anincreaseovertheyearof$536m.
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Summary Financial Statement 43
Summary Financial Statement continued
SummarisedGroupincomestatement
2012 2011
Before Before exceptional Exceptional exceptional Exceptional items items Total items items TotalFortheyearended31December2012 $m $m $m $m $m $m
RevenueAmericas 837 – 837 830 – 830Europe 436 – 436 405 – 405AMEA 218 – 218 216 – 216GreaterChina 230 – 230 205 – 205Central 114 – 114 112 – 112Totalrevenue 1,835 – 1,835 1,768 – 1,768
OperatingprofitAmericas 486 23 509 451 13 464Europe 115 (4) 111 104 (39) 65AMEA 88 (5) 83 84 26 110GreaterChina 81 – 81 67 – 67Central (156) (18) (174) (147) 35 (112)Operatingprofit 614 (4) 610 559 35 594Netfinancecosts (54) – (54) (62) – (62)Profitbeforetax 560 (4) 556 497 35 532Tax (153) 142 (11) (120) 48 (72)Profitfortheyearfromcontinuingoperations 407 138 545 377 83 460
Earningsperordinaryshare(cents)Basic–continuingandtotaloperations 189.5 159.2Adjusted–continuingandtotaloperations 141.5 130.4 Dividendpershare(cents)Final–paidinrespectofprioryear 39.0 35.2Interim–paid 21.0 16.0Special–paid 172.0 –Final–proposed 43.0 39.0
WehaveexaminedtheSummaryFinancialStatementfortheyearended31December2012whichcomprisesthesummarisedGroupincomestatement,summarisedGroupstatementofcashflowsandsummarisedGroupstatementoffinancialposition.ThisstatementismadesolelytotheCompany’smembers,asabody,inaccordancewithsection428(4)oftheCompaniesAct2006.OurauditworkhasbeenundertakensothatwemightstatetotheCompany’smembersthosematterswearerequiredtostatetotheminanauditor’sstatementandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheCompanyandtheCompany’smembersasabody,forourauditwork,forthisstatement,orfortheopinionswehaveformed.
RespectiveresponsibilitiesofDirectorsandtheauditorTheDirectorsareresponsibleforpreparingtheAnnualReviewandSummaryFinancialStatementinaccordancewithapplicableUnitedKingdomlaw.OurresponsibilityistoreporttoyououropinionontheconsistencyoftheSummaryFinancialStatementwithintheAnnualReviewandSummaryFinancialStatementwiththefullannualFinancialStatements,theDirectors’RemunerationReportandtheDirectors’Report,anditscompliancewiththerelevantrequirementsofsection428oftheCompaniesAct2006andtheregulationsmadethereunder.WealsoreadtheotherinformationcontainedintheAnnualReviewandSummaryFinancialStatementandconsidertheimplicationsforourreportifwebecomeawareofanyapparentmisstatementsormaterialinconsistencieswith
theSummaryFinancialStatement.TheotherinformationcomprisesonlytheHeadlines,Chairman’sStatement,ChiefExecutive’sReview,BusinessReviews,SummaryDirectors’Report,CorporateGovernanceStatement,SummaryAuditCommitteeReportandSummaryDirectors’RemunerationReport.WeconductedourworkinaccordancewithBulletin2008/3issuedbytheAuditingPracticesBoard.OurreportontheCompany’sfullannualFinancialStatementsdescribesthebasisofouropiniononthoseFinancialStatements,theDirectors’RemunerationReportandtheDirectors’Report.
OpinionInouropiniontheSummaryFinancialStatementisconsistentwiththefullannualFinancialStatements,theDirectors’ReportandtheDirectors’RemunerationReportofInterContinentalHotelsGroupPLCfortheyearended31December2012andcomplieswiththeapplicablerequirementsofsection428oftheCompaniesAct2006,andtheregulationsmadethereunder.
Ernst&YoungLLPStatutoryAuditor,London18February2013.
Directors’statementTheauditorhasissuedunqualifiedreportsonthefullannualFinancialStatements,theauditablepartoftheDirectors’RemunerationReportandontheconsistencyoftheDirectors’ReportwiththoseannualFinancialStatements.TheirreportonthefullannualFinancialStatementsandtheauditablepartoftheDirectors’RemunerationReportcontainednostatementundersections498(2)or498(3)oftheCompaniesAct2006.
Independent Auditor’s Statement to the members of InterContinental Hotels Group PLC
44 IHG Annual Review and Summary Financial Statement 2012
SummarisedGroupstatementofcashflows
2012 2011Fortheyearended31December2012 $m $m
Cashflowfromoperations 639 623Netinterestpaid (48) (55)Taxpaidonoperatingactivities (119) (89)Netcashfromoperatingactivities 472 479Capitalexpenditure (133) (194)Proceedsfromdisposalofoperationsandotherfinancialassets 8 157Taxpaidondisposals (3) (1)Purchaseofownshares (107) –Dividendspaidtoshareholders (679) (148)Issueoflong-termbonds 632 –Decreaseinotherborrowings (99) (119)Otherfinancingmovements (76) (67)Netmovementincashandcashequivalentsintheyear 15 107Cashandcashequivalentsatbeginningoftheyear 182 78Exchangerateeffects (2) (3)Cashandcashequivalentsatendoftheyear 195 182
SummarisedGroupstatementoffinancialposition
2012 201131December2012 $m $m
ASSETS Property,plantandequipment 1,056 1,362Goodwillandintangibleassets 447 400Investmentinassociatesandjointventures 84 87Retirementbenefitassets 99 21Otherfinancialassets 155 156Non-currenttaxassets 228 147Totalnon-currentassets 2,069 2,173Inventories 4 4Tradeandotherreceivables 422 369Currenttaxreceivable 31 20Derivativefinancialinstruments 2 3Otherfinancialassets 6 –Cashandcashequivalents 195 182Totalcurrentassets 660 578Non-currentassetsclassifiedasheldforsale 534 217Totalassets 3,263 2,968
LIABILITIES Loansandotherborrowings (16) (21)Tradeandotherpayables (709) (707)Provisions (1) (12)Currenttaxpayable (54) (120)Totalcurrentliabilities (780) (860)Loansandotherborrowings (1,242) (670)Derivativefinancialinstruments (19) (39)Retirementbenefitobligations (187) (188)Tradeandotherpayables (563) (497)Provisions (1) (2)Deferredtaxliabilities (93) (97)Totalnon-currentliabilities (2,105) (1,493)Liabilitiesclassifiedasheldforsale (61) (60)Totalliabilities (2,946) (2,413)Netassets 317 555
IHGshareholders’equity 308 547Non-controllinginterest 9 8Totalequity 317 555
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Summary Financial Statement 45
Board of DirectorsPatrickCescauNon-ExecutiveChairmanChairmanoftheNominationCommitteeAppointedNon-ExecutiveChairmaninJanuary2013.AlsoNon-ExecutiveDirectorofInternationalConsolidatedAirlinesGroup,S.A.andtheSeniorIndependentDirectorandNon-ExecutiveDirectorofTescoPLC.TrusteeoftheLeverhulmeTrustandChairmanoftheStJudeIndiaChildren’sCharity.FormerlyaSeniorIndependentDirectorandNon-ExecutiveDirectorofPearsonPLCandaDirectoratINSEAD.
RichardSolomonsChiefExecutiveAppointedChiefExecutiveinJuly2011.JoinedtheGroupin1992andheldanumberofseniorfinancialandoperationalroleswithhispreviousroleasChiefFinancialOfficerandHeadofCommercialDevelopmentandformerlyasChiefOperatingOfficerofTheAmericasHotelsdivision.ServesontheExecutiveCommitteeoftheWorldTravel&TourismCouncil.
TomSingerChiefFinancialOfficerAppointedChiefFinancialOfficerinSeptember2011.JoinedtheGroupfromBupa,wherehewasGroupFinanceDirectorandamainboardmember.PreviouslyGroupFinanceDirectorandChiefOperatingOfficeratWilliamHillPLCandFinanceDirectoratMossBrosGroupPLC.
KirkKinsellPresident,TheAmericasAppointedaDirectorinAugust2010.JoinedtheGroupin2002.AppointedanExecutiveCommitteememberin2007andwasPresident,Europe,MiddleEastandAfricauntilJune2011.ResponsibleforthebusinessdevelopmentandperformanceofallthehotelbrandsandpropertiesinTheAmericasregion.
TracyRobbinsExecutiveVicePresident,HumanResourcesandGroupOperationsSupportAppointedaDirectorinAugust2011.JoinedtheGroupinDecember2005fromCompassGroupPLC.Responsibleforglobaltalentmanagement,leadershipdevelopment,employeerewardstrategyandimplementation,organisationalcapabilityandoperationssupport.
DavidKapplerSeniorIndependentNon-ExecutiveDirectorChairmanoftheAuditCommittee AppointedaDirectorandSeniorIndependentDirectorinJune2004.HeisalsoaNon-ExecutiveDirectorofShireplc.FormerlyChiefFinancialOfficerofCadburySchweppesplcandNon-ExecutiveChairmanofPremierFoodsplc.AmemberoftheEuropeAdvisoryCouncilofTrilanticCapitalPartnersandChairmanofADS2BrandsLimited.
JenniferLaingIndependentNon-ExecutiveDirectorChairmanoftheCorporateResponsibilityCommittee AppointedaDirectorinAugust2005.Hasover30years’experienceinmarketingandadvertisingandwas,until2007,AssociateDean,ExternalRelationsatLondonBusinessSchool.AlsoservesasaNon-ExecutiveDirectorofHudsonGlobal,Inc.,andPremierFoodsplc.
JonathanLinenIndependentNon-ExecutiveDirector AppointedaDirectorinDecember2005.WasformerlyViceChairmanoftheAmericanExpressCompany.ServesasaNon-ExecutiveDirectorofYum!Brands,Inc.andofModernBank,N.A.,andonanumberofUScouncilsandadvisoryboards.
LukeMayhewIndependentNon-ExecutiveDirectorChairmanoftheRemunerationCommittee AppointedaDirectorinJuly2011.ANon-ExecutiveDirectorofBramblesLimited.PreviouslyservedontheBoardofJohnLewisPartnershipandasManagingDirectoroftheDepartmentStoreDivision.WasaNon-ExecutiveDirectorofWHSmithPLCandChairmanofPetsatHomeGroupLimited.
DaleMorrisonIndependentNon-ExecutiveDirector AppointedaDirectorinJune2011.AfoundingpartnerofTriPointeCapitalPartners.WaspreviouslyPresidentandChiefExecutiveOfficerofMcCainFoodsLimited.CurrentlyaNon-ExecutiveDirectorofInternationalFlavors&FragrancesInc.,andChairmanofFindusGroupLimited.
YingYehIndependentNon-ExecutiveDirector AppointedaDirectorinDecember2007.WaspreviouslyVicePresidentandChairman,GreaterChinaRegion,NalcoCompanyandChairmanandPresident,NorthAsiaRegion,President,BusinessDevelopment,AsiaPacificRegionandVicePresident,EastmanKodakCompany.AlsoaNon-ExecutiveDirectorofABVolvo,ABBLtdandSamsoniteInternationalS.A.
AuditCommitteememberCorporateResponsibilityCommitteememberNominationCommitteememberRemunerationCommitteemember
The Board of Directors and Executive Committee
Lefttoright:LarryLight,DaleMorrison,JenniferLaing,RichardSolomons,YingYeh,PatrickCescau,JonathanLinen,LukeMayhew,EricPearson,
46 IHG Annual Review and Summary Financial Statement 2012
KeithBarrChiefExecutive,GreaterChinaJoinedtheGroupin2000.BecameChiefExecutive,GreaterChinainApril2011.ResponsibleforthebusinessdevelopmentandperformanceofallthehotelbrandsandpropertiesintheGreaterChinaregion.
AngelaBravChiefExecutive,EuropeJoinedtheGroupin1988.AppointedChiefExecutive,EuropeinAugust2011.ResponsibleforthebusinessdevelopmentandperformanceofallthehotelbrandsandpropertiesinEurope.
LarryLightChiefBrandsOfficerJoinedtheGroupin2012.FormerlyChiefMarketingOfficerforMcDonald’s.ResponsibleforbuildingontheGroup’sstrategyofdevelopingandnurturingapowerfulportfolioofpreferredBrands.
EricPearsonExecutiveVicePresidentandChiefInformationOfficerJoinedtheGroupin1997.AppointedExecutiveVicePresidentandChiefInformationOfficerin2012.Responsibleforglobaltechnology,includingITsystemsandinformationmanagement,throughouttheGroup.
JanSmitsChiefExecutive,Asia,MiddleEastandAfricaJoinedtheGroupin2002.BecameChiefExecutive,Asia,MiddleEastandAfricainAugust2011.ResponsibleforthebusinessdevelopmentandperformanceofallthehotelbrandsandpropertiesinAsia,MiddleEastandAfrica.
GeorgeTurnerExecutiveVicePresident,GeneralCounselandCompanySecretaryJoinedtheGroupin2008fromImperialChemicalIndustriesPLC.AppointedExecutiveVicePresident,GeneralCounselandCompanySecretaryinJanuary2009.Responsibleforcorporategovernance,riskmanagement,insurance,regulatory,internalaudit,legal,corporateresponsibilityandpublicaffairs.
StevenSickelInterimGlobalHeadofSalesandDistribution*JoinedtheGroupin2000.SinceAugust2011,Stevenhasinterimresponsibilityforrevenuemanagement,revenuesystemsandworldwidesales,inadditiontohisexistingresponsibilitiesasSeniorVicePresident,DistributionRelationshipMarketing.Previously,hewasManagingDirector,LoyaltyMarketingatContinentalAirlinesfor8years.
Executive CommitteeInadditiontotheExecutiveDirectorsontheBoard,theExecutiveCommitteecomprises:
The Board of Directors and Executive Committee
GeorgeTurner,KeithBarr,TracyRobbins,StevenSickel,KirkKinsell,AngelaBrav,JanSmits,TomSingerandDavidKappler.
InApril2013KennethMacPhersonwilljointheGroupasChiefExecutive,GreaterChinahavingpreviouslybeenGeneralManagerandBoardDirectorofSichuanShuijingfangCompanyLtd,aDiageojointventureinChina.Witheffectfrom1June2013KeithBarrwillbeappointedtothenewlycreatedpositionofChiefCommercialOfficer,responsibleforbrands,sales,marketinganddistribution,andwillremainamemberoftheExecutiveCommittee.DuringthetransitionLarryLightwillcontinueinhisroleasChiefBrandsOfficerandasamemberoftheExecutiveCommittee.FollowingthetransitionLarrywillstayonasaseniorIHGadvisor.
*StevenSickel,whohasbeenaninterimmemberoftheExecutiveCommittee,willreturntohisfull-timeroleleadingDistributionRelationshipMarketinginJune2013.
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The Board of Directors and Executive Committee 47
PrincipalactivitiesInterContinentalHotelsGroupPLC(theCompany)istheholdingcompanyoftheInterContinentalHotelsGroup(theGroup).TheGroupfranchises,manages,ownsandleasesover4,600hotels,withnearly676,000guestroomsinnearly100countriesandterritoriesaroundtheworld.AreviewoftheperformanceoftheGroupiscontainedintheChairman’sStatementandtheChiefExecutive’sReviewonpages4to7,theBusinessReviewspresentedonpages8to41andintheSummaryFinancialStatementsonpages42to45.
AnnualGeneralMeeting(AGM)TheNoticeconveningtheAGMtobeheldat11.00amonFriday,24May2013iscontainedinacircularsenttoshareholdersatthesametimeasthisAnnualReview.
ResultsanddividendsTheoperatingprofitbeforeexceptionalitemswas$614m.Aninterimdividendof13.5pencepershare(21.0centsperADR)waspaidon28September2012.Aspecialdividendof108.4pencepershare($1.72perADR)waspaidon22October2012.TheDirectorsarerecommendingafinaldividendof27.7pencepershare(43.0centsperADR)tobepaidon31May2013toshareholdersontheRegisterofMembersatthecloseofbusinesson22March2013.
SharecapitalTheCompany’sissuedsharecapitalat31December2012consistedof268,325,071ordinarysharesof14194 ⁄329penceeach.Therearenospecialcontrolrightsorrestrictionsonsharetransferattachingtotheseordinaryshares.Duringtheyear,noawardsorgrantsoversharesweremadethatwouldbedilutiveoftheCompany’sordinarysharecapital.
ShareissuesandbuybacksOn7August2012,theCompanyannounceda$1bnreturnoffundstoshareholdersviaaspecialdividendof$0.5bnandshareconsolidationona14for15basisandasharebuybackprogrammeof$0.5bn.ThesharebuybackauthorityremainsinforceuntiltheAGMin2013,andaresolutiontorenewtheauthoritywillbeputtoshareholdersatthatAGM.
SubstantialshareholdingsAsat31December2012and18February2013,theCompanyhadbeennotifiedofthefollowingsignificantholdingsinitsordinaryshares:
AsatShareholder 18February2013
CedarRockCapitalLimited 5.07%BlackRock,Inc. 5.02%Legal&GeneralGroupplc 3.96%
BoardofDirectorsBiographicaldetailsofcurrentBoardmembersareshownonpages46and47.ExecutiveDirectorshaveservicecontractsandNon-ExecutiveDirectorshavelettersofappointment.
TheBoardmayexerciseallthepowersoftheCompany.TheGroupmaintainsinsurancecoverforandhasprovidedindemnitiestoallofitsDirectorsandofficers,aspermittedbytheCompaniesAct2006.
DetailsofthebeneficialinterestsinsharesoftheCompany,heldbyDirectorswhowereontheBoardattheyearendareshownbelow:
Asat Asat 31December2012 31December2011 ordinaryshares1 ordinaryshares1
ExecutiveDirectors KirkKinsell 155,6282 109,547TracyRobbins 85,703 43,108TomSinger 20,846 –RichardSolomons 322,379 252,166Non-ExecutiveDirectors PatrickCescau3 – –DavidKappler 1,308 1,400JenniferLaing 3,148 3,373JonathanLinen 6,8534 7,343LukeMayhew 1,866 2,000DaleMorrison 4,2334 –DavidWebster3 33,438 35,828YingYeh – –
1 TheseshareholdingsincludeallbeneficialinterestsandthoseheldbyDirectors’spousesandotherconnectedpersons.NoneoftheDirectorshaveabeneficialinterestinthesharesofanysubsidiary.TheseshareholdingsdonotincludeExecutiveDirectors’entitlementstoshareawardsundertheCompany’sshareplans,whicharesetoutseparatelyintheSummaryDirectors’RemunerationReportonpages50to57.
2 155,034ordinarysharesand594AmericanDepositaryReceipts.
3 PatrickCescauwasappointedasaNon-ExecutiveChairmanon1January2013followingtheretirementofDavidWebsteron31December2012.
4 HeldintheformofAmericanDepositaryReceipts.
EmployeesIHGdirectlyemployedanaverageof7,981peopleworldwideduring2012,whosecostsarebornebytheGroup.WhenthewholeIHGestateistakenintoaccount(includingstaffworkinginthefranchisedandmanagedhotels)morethan350,000peopleworkedgloballyacrossallIHG’sbrandsat31December2012.
TheGroupiscommittedtoprovidingemployeeswithequalityofopportunity,withoutdiscrimination.Greatemphasisisplacedonemployeecommunications,particularlyonmattersrelatingtotheGroup’sbusinessanditsperformance.
CharitableandpoliticaldonationsIn2012,theGroupdonated$1,015,000insupportofcommunityinitiativesandcharitablecauses.ThisfigureincludescontributionsfromIHGemployeesandguests.Nopaymentsweremadeforpoliticalpurposes.
AuditorsTheDirectorsconfirmthattheyhavetakenstepstomakethemselvesawareofrelevantauditinformation.NoneoftheDirectorsareawareofanyrelevantauditinformationwhichhasnotbeendisclosedtotheauditors.
ThereappointmentofErnst&YoungLLPasauditorsoftheCompanywillbeputtoshareholdersattheAGM.
GoingconcernAttheendof2012,theGroupwastradingwithinitsbankingcovenantsanddebtfacilities.IHG’sfeebasedmodelandwidegeographicspreadmeansthatitiswellplacedtomanagethroughuncertaintimes.
TheFinancialStatementsfortheyearended31December2012havethereforebeenpreparedonthegoingconcernbasis.
48 IHG Annual Review and Summary Financial Statement 2012
Summary Directors’ Report
TheBoardiscommittedtocompliancewithalltheprinciplesandprovisionssetoutintheUKCorporateGovernanceCode(Code)andconsidersthattheCompanyhascompliedwithitsrequirementsthroughouttheyearended31December2012.
TheBoardofDirectorsTheBoardisresponsibletotheshareholdersforthestrategicdirection,development,performanceandcontroloftheGroup.ItalsoensuresthatthenecessaryfinancialandhumanresourcesareinplacefortheGrouptomeetitsobjectives.During2012eightBoardmeetingswereheld.
DavidWebsterwasNon-ExecutiveChairmanthroughouttheyear.InMay2012DavidWebsternotifiedtheBoardofhisintentiontoretireandstepdownasNon-ExecutiveChairmanwitheffectfrom31December2012.InJune2012GrahamAllanretiredfromtheBoard,AuditCommittee,NominationCommitteeandCorporateResponsibilityCommitteeandinNovember2012DaleMorrisonwasappointedtotheCorporateResponsibilityCommittee.TheprogressiverefreshingoftheBoardensuresthatwehaveappropriatecontinuationandamulti-skilledanddiverseBoard.
TheBoardiscomprisedoffourExecutiveDirectorsandateamofsevenexperiencedindependentNon-ExecutiveDirectorsrepresentastrongsourceofadviceandjudgement.TogethertheBoardhasabroadrangeofskills,knowledgeandexperienceandrepresentawidegeographicalspread.
ThescheduleofmatterswhicharereservedfortheBoardareavailableontheCompany’swebsiteatwww.ihgplc.com/investorsundercorporategovernance.
CommitteesTheBoardCommitteesinclude:AuditCommittee;CorporateResponsibilityCommittee;NominationCommittee;andRemunerationCommittee.TheAudit,NominationandRemunerationCommitteesconsistwhollyofNon-ExecutiveDirectors.TheChairmanoftheBoardisamemberoftheNominationCommitteeonly.ThetermsofreferenceoftheseCommitteeswerereviewedduring2012toensurethattheycontinuetoreflectbestpracticeandareavailableontheCompany’swebsiteatwww.ihgplc.com/investorsundercorporategovernance/committeesorfromtheCompanySecretary’sofficeonrequest.
InductionprogrammesarepreparedfornewDirectorsandongoingtraininganddevelopmentneedsforallDirectorsarekeptunderreview.
The2012BoardperformanceevaluationoftheBoardanditsCommitteeswasconductedbyanindependentexternalfacilitator,LintstockLimited.ItinvolvedthecompletionofcomprehensivequestionnairesinwhichDirectorsandtheCompanySecretarywereaskedtoevaluatetheBoard,eachofitsCommitteesandtheirrespectiveChairmenandtheChairmanoftheBoard.
ThefeedbackconfirmedthattheBoardandeachofitsCommitteescontinuetooperateeffectivelyandthateachDirectorcontinuestomakeaneffectivecontributionandretainsastrongcommitmenttotherole.
TheDirectorshaveagreedtoretireateachAnnualGeneralMeeting(AGM)andofferthemselvesforre-electionannuallyinlinewiththeCoderecommendations.
SeniorIndependentDirectorDavidKapplerwasSeniorIndependentDirectorthroughouttheyear.Hisroleincludesbeingavailabletoliaisewithshareholderswhohaveconcernsthattheyfeelhavenotbeenaddressedthroughthenormalchannels,beingasoundingboardfortheChairmanandleadingtheperformanceevaluationoftheChairman.
CompanySecretaryAllDirectorshaveaccesstotheadviceandservicesoftheCompanySecretary.HisresponsibilitiesincludeadvisingtheBoardoncorporategovernance,andforensuringgoodinformationflowstotheBoardanditsCommitteesandbetweentheExecutiveCommitteeandtheNon-ExecutiveDirectors.HealsofacilitatestheinductionofnewDirectorsandtheregularupdatingandrefreshingofallDirectors’skillsandknowledge.
InternalcontrolandriskmanagementTheBoardhasultimateresponsibilityfortheGroup’ssystemofinternalcontrolandriskmanagementandforreviewingitseffectiveness.Inordertodischargethatresponsibility,theBoardhasestablishedtheproceduresnecessarytoapplytheCode,includingclearoperatingprocedures,linesofresponsibilityanddelegatedauthorities.
Fortheyearended31December2012,theBoardhasconductedareviewoftheeffectivenessofthesystemofinternalcontrolandriskmanagement.Thesystemisdesignedtomanagetheriskoffailuretoachievebusinessobjectives,anditcanonlyprovidereasonableandnotabsoluteassurance.WhilstareasforcontinuousimprovementhavebeenidentifiedandactionsinitiatedasaresultoftheGroup’sprocesses,nosignificantshortcomingshavebeenidentifiedfromthe2012riskassessments.
ShareholderrelationsTheGroupreportsformallytoshareholderstwiceayearandreleasesquarterlyresults.Inaddition,regularmeetingsareheldwithmajorinstitutionalshareholderstodiscuss,usingpubliclyavailableinformation,progressofthebusiness,itsperformance,plansandobjectives.TheChairman,theSeniorIndependentDirectorandotherNon-ExecutiveDirectorsareavailabletomeetwithmajorshareholderstounderstandtheirissuesandconcernsandtodiscussgovernanceandstrategy.
TheAGMprovidesausefulforumforone-to-onecommunicationwithprivateshareholders,manyofwhomarealsoguestsinourhotels.InformationofinteresttoinvestorsisalsomaintainedontheCompany’swebsiteatwww.ihgplc.com/investors
SummaryAuditCommitteeReportTheAuditCommittee,whichischairedbyafinancialexpert,supportstheBoardinmeetingitsresponsibilitiesinrelationtotheintegrityoftheGroup’sfinancialstatementsandassociatedannouncements,theadequacyofinternalcontrolandriskmanagementsystemsandtheappointmentandworkoftheinternalandexternalauditors.TheexternalauditorsandtheHeadofGlobalInternalAuditbothhavetheopportunitytomeetprivatelywiththeCommittee.
Duringtheyear,theCommittee’sdeliberationsincludedawiderangeofmattersaddressingallitsmainareasofresponsibility.TheCommittee’smainfocuswastoreviewthequarterly,interimandfull-yearfinancialresultsandtoreviewtheeffectivenessofinternalcontrol,financialreportingandriskmanagementprocesses,throughreportsandpresentationsreceivedfromGlobalInternalAudit(GIA),theexternalauditorsandmanagement.ConsiderationwasalsogiventoGIA’sannualinternalauditplan,disclosurecontrols,developmentsincorporategovernanceandaccountingstandardsintheUKandUSandsignificantincidentsoffraudandwhistleblowing.
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Summary Directors’ Report and Corporate governance 49
Corporate governance
IntroductionThis year, 2013, is a year of transition for directors’ remuneration reports. We have prepared this report before new final Government regulations on executive remuneration disclosure are issued. However, we have reflected as much as is practical of the direction and spirit of the draft regulations in both the content and structure of the full 2012 Directors’ Remuneration Report from which this summary report is extracted.
We have historically tried to make the report transparent and easy to read and in recent years already included, for example, the single figure for Executive Directors’ remuneration and a remuneration policy summary table.
Executive Director remuneration at IHG has evolved during 2012:
• the measures under the Annual Bonus Plan (ABP) have been changed for Executive Directors in 2013. To distinguish it from the previous measures, we refer to it as the Annual Performance Plan (APP). Although not a radical change, the APP does align annual incentives more closely to the key elements of our strategic priorities of Brands, People and Delivery; and
• the 2010/12 Long Term Incentive Plan (LTIP), which will vest in 2013, is the last LTIP using the previous measures. The 2011/13 LTIP, which vests in 2014, is the first LTIP including the new corporate performance measures of net rooms growth and RevPAR.
Remuneration for Executive Directors in 2012 reflects another year of strong corporate results, as shown in the table below:
2012 2011 2010
EBIT +9.8% +25.9% +22.3%Adjusted EPS* +21.7% +2.5% +9.6%TSR* +28.2% +29.8% +8.0%
* Annualised three-year changes.
Remuneration has reflected these results with an ABP award just above target for 2012 and a maximum vesting of the 2010/12 LTIP cycle.
We continually keep all aspects of remuneration under review and listen to the views of shareholders, the Government and other
stakeholders. We believe our current approach to remuneration is responsible and appropriate as it:
• is structured to drive execution of our business strategy;
• aligns reward with the creation of shareholder value;
• allows the Company to recruit and retain talent in a competitive global sector;
• incorporates measures and safeguards to ensure that high rewards only follow strong, balanced results; and
• incentivises the delivery of long-term, sustainable business growth and shareholder value, rather than the pursuit of unsustainable short-term results.
The targets for 2013 are stretching and will require a strong corporate performance to achieve similar levels of remuneration.
Luke MayhewChairman of the Remuneration Committee 18 February 2013
Summary Directors’ Remuneration Report glossary of terms
ABP Annual Bonus Plan
APP Annual Performance Plan
DB Defined Benefit
DC Defined Contribution
DJGH index Dow Jones Global Hotels index
EBIT Earnings before interest and tax
EPS Earnings per share
ICETUS InterContinental Executive Top-Up Scheme
IC Plan InterContinental Hotels UK Pension Plan
LTIP Long Term Incentive Plan
OPR Overall performance rating
RevPAR Revenue per available room
TSR Total Shareholder Return
Summary of IHG’s Executive Director remuneration policy for 2013
Fixed remuneration Variable remuneration
SalaryPensionBenefits
Annual incentive – APP50% cash and 50% shares deferred for three yearsLinked to individual and company achievement using performance measures relating to:– Brands;– People; and– Delivery.
Long-term incentive – LTIPShare awards vest after three years if performance conditions are met:– 25% relative net rooms growth;– 25% relative RevPAR growth; and– 50% relative TSR v the DJGH index.
Minimum shareholding requirement
Corporate performance indicators 2012 2011 2010Operating profit before exceptional items +9.8%
$614m†
+25.9%$559mt
+22.3% $444m
Full-year dividend (excluding any special dividends and capital returns) 64 cents (41.2p) per share
55 cents (34.5p) per share
48 cents (30.0p) per share
Three-year total TSR (annualised) +28.2% +29.8% +8.0%
Three-year adjusted EPS (annualised) +21.7% +2.5% +9.6%
Budgeted salary increase (US and UK corporate employees) 3.0% 3.0% 2.9%†�Includes one significant liquidated damages receipt in 2012 of $3m in The Americas.t�Includes two significant liquidated damages receipts in 2011; $10m in The Americas and $6m in Asia, Middle East and Africa.
50� IHG Annual Review and Summary Financial Statement 2012
Summary Directors’ Remuneration Report
ApproachformembersoftheExecutiveCommitteeMembersoftheExecutiveCommitteearerewardedonthesamebasisastheExecutiveDirectors,participatinginthesameincentiveplansandwithasimilarsplitbetweenfixedandvariableremuneration,andbetweencashandshares.
Keychangesin2012Changestotheannualincentiveforseniorexecutives,includingtheExecutiveDirectors,wereapprovedbytheCommitteefor2013,withtheobjectiveofmorecloselyaligningrewardtothedeliveryofourstrategicobjectivesofBrands,PeopleandDelivery.
FactorstakenintoaccountindeterminingpayInmakingdecisionsinrelationto2012pay,theCommitteetookintoaccount:
•theachievementofcorporateperformancetargetsundertheABPandLTIP(seethetablesonpages55and56);
•anappropriatemixoffixedandvariablepay,withanemphasisondrivingperformancethroughapproximatelytwo-thirdsoftotalpaybeingvariable;
•payandconditionselsewhereintheGroup,includingtheaveragebudgetedsalaryincreasefortheemployeepopulation(seethetableonthepreviouspage);and
•thecorporateperformanceindicatorsshowninthetableonthepreviouspage.
A–KeyremunerationprinciplesIHG’sexecutiveremunerationprinciplesaredesignedtodrivethedeliveryofstrategicobjectivesby:
•attractingandretaininghigh-qualityexecutivesinanenvironmentwherecompensationisbasedonglobalmarketpractice;
•aligningrewardsforexecutiveswiththeachievementofbusinessperformancetargets,strategicobjectivesandreturnstoshareholders;
•supportingequitabletreatmentbetweenmembersofthesameexecutiveteam;and
•facilitatingglobalassignmentsandrelocations.
IHG’sremunerationstructureforseniorexecutivesplacesastrongemphasisonperformance-relatedreward.TheCommitteebelievesthatitisimportanttorewardmanagement,includingtheExecutiveDirectors,fortargetsachieved,providedthosetargetsarestretching.
B–LinkwithstrategyOurstrategy(summarisedbelow)isthedriverofourrewardstructure.ThecurrentperformancemeasuresusedinIHG’sincentiveplansarealignedwithourstrategicpriorities,whichwillenableustoachieveourVisionofbecomingoneofthegreatcompaniesintheworldbycreatingGreatHotelsGuestsLove.
Where we compete How we win
Relevant consumer segments
most attractive markets
appropriate business model
Responsible Business
Long Term Incentive PlanMeasuresbalancethequalityofhotels
withthespeedatwhichwegrow:
Relative net rooms growthsupports our business model, segment
and market strategies to grow system size over three years
Relative RevPAR growthReflects the sustainable power of our Brands, scale and experience and engaged workforce
Focusses growth on quality rooms in key markets
Relative TSRprovides alignment with shareholder returns
Annual Performance PlanMeasuresprovidefocusonkeydriversofsustainablegrowth:
HeartbeatIncreases guest satisfaction as an
indicator of the strength of our Brands
Engagement Increases the engagement of our
people who bring our Brands to life
EBITprovides annual focus on earnings growth
driven by core operating inputs, namely rooms growth, RevpaR, fee revenue
and margins
Brands
People
Delivery
portfolio of preferred Brandstalented people
Best-in-class deliveryResponsible Business
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Summary Directors’ Remuneration Report 51
C–RemunerationpolicysummaryThefollowingtableshowsasummaryoftheindividualelementsofremunerationprovidedtotheExecutiveDirectorsfor2013.TheAPPreplacestheABPforseniorexecutivesfrom2013.
Rewardelement Purposeandlinktostrategy Operation Opportunity Performancemetrics Changesinyear
Salary(cash)
Recognisesthemarketvalueoftheroleandtheindividual’sskill,performanceandexperience.
Reviewedannuallyandfixedfor12monthsfrom1April.
Committeeconsiders:•businessandindividualperformance;•currentremunerationagainstinternalandexternal
benchmarks;and•averagesalaryincreasesforthewiderIHGworkforce.
Whenexternalbenchmarkingisused,thecomparatorgroupsarechosenhavingregardto:•size–marketcapitalisation,turnover,profitsandthe
numberofemployees;•diversityandcomplexityofthebusiness;•geographicalspreadofthebusiness;and•relevancetothehotelindustry.
Determinedannuallyonthefactorssetouttotheleft
None Directors’salariesincreasedbetween2.5%-3%in2012
APP
(50%cashand50%shares)
Drivesandrewardsannualperformanceagainstbothfinancialandnon-financialmetrics.
AlignsindividualsandteamswithkeystrategicprioritiesofBrands,PeopleandDelivery.
Alignsshort-termannualperformancewithstrategytogeneratelong-termreturnstoshareholders.
Takesintoaccountpersonalperformanceofindividuals.
Reviewedannuallywithtargetssetinlinewithstrategicobjectives.
Regionalaswellasglobaltargetsareusedwhenappropriate.
PaymentisdeterminedbytheCommittee,whichhascertainspecifieddiscretionsoverawardlevels,aftertheendoftheyear.
Target=115%ofsalary
Maximum=200%ofsalary
20%Brands:year-on-yearimprovementinguestsatisfaction
10%People:year-on-yearimprovementinemployeeengagement
70%Delivery:EBITvtarget
Alltargetsmeasuredoveroneyear
APPforseniorexecutivesfrom2013
LTIP
(shares)
Drivesandrewardsdeliveryofsustainedlong-termperformanceonmeasuresthatarealignedwiththeinterestsofshareholders.
AnnualawardsoverIHGshares,whichvestafterthreeyears,subjecttotheachievementofcorporateperformancetargets.
Reviewedannuallywithtargetssetinlinewithstrategicobjectives.VestingisconfirmedbytheCommitteeaftertheendofthevestingperiod,withdiscretiontoreducevestinglevelifthequalityoftheunderlyingperformanceoftheCompanyisnotsatisfactory.
Maximumfor2013/15LTIPcycle=205%ofsalary
Willnotexceedthreetimesannualsalaryotherthaninexceptionalcircumstances
25%relativenetroomsgrowthand25%relativeRevPARgrowth(bothmeasuredvcomparatorgroup):•20%thresholdvestingifequaltoaveragegrowthof
comparatorgroup;•maximumvestingifrankedas1stinthecomparator
group;and•straight-linevestinginbetween.
50%relativeTSR(vDJGHindex):•20%thresholdvestingifequaltoindex;•maximumvestingif8%ormoreperyearaheadofindex;and•straight-linevestinginbetween.
Alltargetsmeasuredoverathree-yearperformanceperiod
Nonein2012
Pension Helpsrecruitandretain.
Rewardslong-termindividualperformance.
Thefollowingplansareoperated:•forUKexecutives,theexecutivesectionofthe
InterContinentalHotelsUKPensionPlan(ICPlan),whichhasadefinedbenefitsection(UKDBPlan)andadefinedcontributionsection(UKDCPlan);
•forUKexecutives,theInterContinentalExecutiveTop-UpScheme(ICETUS);
•forUSexecutives,aDC401(k)Plan(US401(k)Plan)andaDCDeferredCompensationPlan(USDeferredCompensationPlan);and
•fornon-UKandnon-USexecutives,theInterContinentalHotelsGroupInternationalSavingsandRetirementPlan,andotherlocalplans.
AcashallowanceinlieuofpensionbenefitsisofferedforUKexecutives.
UKDBPlan:1/30thaccrualrate
UKDCPlan:7.5%employeecontributionwith30%matchingCompanycontribution
US401(k)Plan:2%-75%employeecontributionwith4%matchingCompanycontribution
USDeferredCompensationPlan:upto75%employeecontributionwith2%matchingCompanycontributionand4%-20%additionalCompanycontributionifcertainconditionsaremet
None Nonein2012
UKDBPlanwillclosetofutureaccrualforexistingmemberswitheffectfrom1July2013
52 IHG Annual Review and Summary Financial Statement 2012
Summary Directors’ Remuneration Report continued
Rewardelement Purposeandlinktostrategy Operation Opportunity Performancemetrics Changesinyear
Salary(cash)
Recognisesthemarketvalueoftheroleandtheindividual’sskill,performanceandexperience.
Reviewedannuallyandfixedfor12monthsfrom1April.
Committeeconsiders:•businessandindividualperformance;•currentremunerationagainstinternalandexternal
benchmarks;and•averagesalaryincreasesforthewiderIHGworkforce.
Whenexternalbenchmarkingisused,thecomparatorgroupsarechosenhavingregardto:•size–marketcapitalisation,turnover,profitsandthe
numberofemployees;•diversityandcomplexityofthebusiness;•geographicalspreadofthebusiness;and•relevancetothehotelindustry.
Determinedannuallyonthefactorssetouttotheleft
None Directors’salariesincreasedbetween2.5%-3%in2012
APP
(50%cashand50%shares)
Drivesandrewardsannualperformanceagainstbothfinancialandnon-financialmetrics.
AlignsindividualsandteamswithkeystrategicprioritiesofBrands,PeopleandDelivery.
Alignsshort-termannualperformancewithstrategytogeneratelong-termreturnstoshareholders.
Takesintoaccountpersonalperformanceofindividuals.
Reviewedannuallywithtargetssetinlinewithstrategicobjectives.
Regionalaswellasglobaltargetsareusedwhenappropriate.
PaymentisdeterminedbytheCommittee,whichhascertainspecifieddiscretionsoverawardlevels,aftertheendoftheyear.
Target=115%ofsalary
Maximum=200%ofsalary
20%Brands:year-on-yearimprovementinguestsatisfaction
10%People:year-on-yearimprovementinemployeeengagement
70%Delivery:EBITvtarget
Alltargetsmeasuredoveroneyear
APPforseniorexecutivesfrom2013
LTIP
(shares)
Drivesandrewardsdeliveryofsustainedlong-termperformanceonmeasuresthatarealignedwiththeinterestsofshareholders.
AnnualawardsoverIHGshares,whichvestafterthreeyears,subjecttotheachievementofcorporateperformancetargets.
Reviewedannuallywithtargetssetinlinewithstrategicobjectives.VestingisconfirmedbytheCommitteeaftertheendofthevestingperiod,withdiscretiontoreducevestinglevelifthequalityoftheunderlyingperformanceoftheCompanyisnotsatisfactory.
Maximumfor2013/15LTIPcycle=205%ofsalary
Willnotexceedthreetimesannualsalaryotherthaninexceptionalcircumstances
25%relativenetroomsgrowthand25%relativeRevPARgrowth(bothmeasuredvcomparatorgroup):•20%thresholdvestingifequaltoaveragegrowthof
comparatorgroup;•maximumvestingifrankedas1stinthecomparator
group;and•straight-linevestinginbetween.
50%relativeTSR(vDJGHindex):•20%thresholdvestingifequaltoindex;•maximumvestingif8%ormoreperyearaheadofindex;and•straight-linevestinginbetween.
Alltargetsmeasuredoverathree-yearperformanceperiod
Nonein2012
Pension Helpsrecruitandretain.
Rewardslong-termindividualperformance.
Thefollowingplansareoperated:•forUKexecutives,theexecutivesectionofthe
InterContinentalHotelsUKPensionPlan(ICPlan),whichhasadefinedbenefitsection(UKDBPlan)andadefinedcontributionsection(UKDCPlan);
•forUKexecutives,theInterContinentalExecutiveTop-UpScheme(ICETUS);
•forUSexecutives,aDC401(k)Plan(US401(k)Plan)andaDCDeferredCompensationPlan(USDeferredCompensationPlan);and
•fornon-UKandnon-USexecutives,theInterContinentalHotelsGroupInternationalSavingsandRetirementPlan,andotherlocalplans.
AcashallowanceinlieuofpensionbenefitsisofferedforUKexecutives.
UKDBPlan:1/30thaccrualrate
UKDCPlan:7.5%employeecontributionwith30%matchingCompanycontribution
US401(k)Plan:2%-75%employeecontributionwith4%matchingCompanycontribution
USDeferredCompensationPlan:upto75%employeecontributionwith2%matchingCompanycontributionand4%-20%additionalCompanycontributionifcertainconditionsaremet
None Nonein2012
UKDBPlanwillclosetofutureaccrualforexistingmemberswitheffectfrom1July2013
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Summary Directors’ Remuneration Report 53
Detailsofelementsshown:
2012actualsalarypaid–salaryfortheyear;forKirkKinsellthisshowsactualsalarypaidconvertedintosterling;
2012ABPcash–cashportionofABPawardfor2012performance;
2012ABPdeferredshares–valueofdeferredshareportionofABPawardfor2012performance(basedonsharepriceof1,707.0pasat31December2012);
2010/12LTIP–valueofLTIPawardduetoveston20February2013asaresultof2010to2012performance(basedonsharepriceof1,707.0pasat31December2012);
2012benefits–alltaxablebenefitsarisingfromtheindividual’semploymentin2012;thisincludestheprovisionofafully-expensedcompanycar,privatehealthcare,financialcounsellingandotherbenefits.ForKirkKinsell,thisincludesthecostofexpatriatebenefitsrelatedtohisinternationalassignmentpriortotakinguphisBoardappointmentasPresident,TheAmericas,on13June2011;
2012pensionbenefit–forRichardSolomons,theincreaseinpensionvalueduring2012;forotherExecutiveDirectors,thevalueofCompanycontributionstopensionplansoranycashallowancespaidinlieuofpensioncontributions.ThepensionbenefitaccruingtoRichardSolomonsin2012aroseprincipallyfromhissalaryreviewwhenappointedChiefExecutiveinJuly2011.
2009ABPdeferredshares–therewasnovestingofABPdeferredsharesrelatingto2009asnoannualincentivewaspaidinrespectoffinancialyear2009.
AllfiguresarecalculatedinaccordancewithourunderstandingoftherequirementsofthedraftBISregulationsondisclosureofexecutivepay.
D–Singlefigureremunerationin2012–actualandmaximum
SingleTotalFigureTable(£000) 2012 2012 2012ABP 2012actual 2012 pension ABP deferred 2010/12 Director salarypaid benefits benefit cash shares LTIP Total
RichardSolomons 716 48 1,140 494 494 1,738 4,630KirkKinsell* 474 663 110 306 306 1,287 3,146TracyRobbins 409 23 123 300 300 954 2,109TomSinger 540 19 162 346 346 1,194 2,607
*KirkKinsellispaidinUSdollarsandthesterlingvaluesinthechartabovehavebeencalculatedusinganexchangerateof$1=£0.63.
2010/12LTIP2012ABPdeferredshares2012ABPcash2012pensionbenefit2012benefits2012actualsalarypaid
Value (£000)
max
max
max
max
actual
actual
actualactual
0
1,000
2,000
3,000
4,000
5,000
6,000
Tracy RobbinsKirk Kinsell Tom SingerRichard Solomons
54 IHG Annual Review and Summary Financial Statement 2012
Summary Directors’ Remuneration Report continued
E–Salaryandbenefits•Basesalaryistheonlyelementofremunerationwhichis
pensionable.
•Inadditiontosalary,benefitsareprovidedtoExecutiveDirectors,whoareallbasedintheUKorUS,inaccordancewithlocalmarketpractice.
•TheoverallbudgetforsalaryincreasesforIHGcorporateemployeesintheUKandUS,andtheoverallincreaseintheDirectors’salariesfor2013isshownbelow:
UKcorporateemployees
UScorporateemployees
ExecutiveDirectors
3.0% 3.0% 2.5%
ExecutiveDirectorannualsalariesfor2012and2013
2013 2013 2012 2012Director £ $ £ $
RichardSolomons 739,000 721,000KirkKinsell* 774,000 755,400TracyRobbins 424,300 412,000TomSinger 550,800 540,000
* KirkKinsellispaidinUSdollarsandhisannualbasesalaryfor2012and2013isshowninUSdollarsabove.Theequivalentsterlingvaluescalculatedusinganexchangerateof$1=£0.63are:2012–£476,562;and2013–£488,296.
F–AnnualBonusPlan(ABP)StructureFrom2013,seniorexecutiveswillparticipateintheAPP,detailsofwhichareonpages52and53.In2012,ExecutiveDirectorsparticipatedinthe2012ABP,thestructureofwhichisasfollows:
ABP2012
30%individual
50%cash
Performancemeasures
Paymentstructure
70%EBIT
50%shares(deferredforthreeyears)
Themeasuresfor2012were:
•GlobalEBITachievementagainsttargetfor2012:
–thresholdpayout:90%oftargetperformance;
–maximumpayout:110%oftargetperformance;and
–straight-linevestinginbetween.
•OPR–basedonachievementofspecificindividualobjectiveslinkeddirectlytostrategicpriorities,andanassessmentagainstleadershipcompetenciesandbehaviours.TheobjectivesandOPRsarereviewedandagreedbytheCommittee.
2012targetandmaximumpayments
Keyperformance
Awardas%ofsalary
Measure indicator Target Maximum
Financial EBIT(70%) 80.5 161Individual OPR(30%) 34.5 69Totalfor2012 115 200*
*CombinedEBITandOPRpayoutsubjecttoamaximumof200%ofbasesalary.
Outcomefor20122012EBITachievedwas101.7%oftargetfortheyear.Basedonthisperformance,thefollowingtableshowsthelevelof2012awards.50%waspaidincashand50%indeferredsharesthatwillvestafterthreeyears.
EBIT% OPR% TotalawardasDirector award award %ofsalary
RichardSolomons 93.8 43.1 136.9KirkKinsell 93.8 34.5 128.3TracyRobbins 93.8 51.8 145.6TomSinger 93.8 34.5 128.3
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G–LongTermIncentivePlan(LTIP)Structureandoutcomefor2012Theawardforthe2010/12cyclehadcorporateperformancemeasuresbasedonrelativeTSRandEPS.Thestructureisasfollows:
LTIP2010/12
50%EPS
Performancemeasures
Paymentstructure
50%TSR
100%shares
Themeasuresandoutcomesareasfollows:
Performancemeasure
Thresholdperformance
Maximumperformance
Threshold/maximum
vesting
Weighting Maximumaward–%ofsalary
Outcome
2010/12cycle
TSR GrowthequaltotheDJGHindex
Growthexceedstheindexby8%peryearormore
20%/100% 50% 102.5% Growthexceededindexby15%peryear
EPS Growthof5%peryear
Growthof15%peryearormore
20%/100% 50% 102.5% Growthof21.7%peryear
Totalvestingoutcome
100%ofmaximumaward
CurrentpositiononotheroutstandingawardsFrom2011,theperformancemeasuresfortheLTIPwerechanged.Detailsoftheperformancemeasuresandpotentialvestingoutcomesforoutstandingawardsasat31December2012areasfollows:
Performancemeasure
Thresholdperformance
Maximumperformance
Threshold/maximumvesting
Weighting Maximumaward–%ofsalary
Potentialvestingoutcomes
2011/13cycle
Netroomsgrowth
Averageofthecomparatorgroup
1stinthecomparatorgroup
20%/100% 25% 51.25% Improvedperformanceneededtoachievethresholdvesting
RevPARgrowth
Averageofthecomparatorgroup
1stinthecomparatorgroup
20%/100% 25% 51.25% Betweenthresholdandmaximumvestingifcurrentperformancemaintained
TSR GrowthequaltotheDJGHindex
Growthexceedstheindexby8%peryearormore
20%/100% 50% 102.5% Maximumvestingifcurrentperformancemaintained
2012/14cycle
Netroomsgrowth
Averageofthecomparatorgroup
1stinthecomparatorgroup
20%/100% 25% 51.25% Betweenthresholdandmaximumvestingifcurrentperformancemaintained
RevPARgrowth
Averageofthecomparatorgroup
1stinthecomparatorgroup
20%/100% 25% 51.25% Betweenthresholdandmaximumvestingifcurrentperformancemaintained
TSR GrowthequaltotheDJGHindex
Growthexceedstheindexby8%peryearormore
20%/100% 50% 102.5% Maximumvestingifcurrentperformancemaintained
56 IHG Annual Review and Summary Financial Statement 2012
Summary Directors’ Remuneration Report continued
H–ExecutiveshareholdingrequirementTheCommitteebelievesthatshareownershipbyExecutiveDirectorsandseniorexecutivesstrengthensthelinkbetweentheindividuals’personalinterestsandthoseoftheshareholders.
ExecutiveDirectorsareexpectedtoholdallsharesearned(netofanysharesalesrequiredtomeetpersonaltaxliabilities)untiltheguidelineshareholdingrequirementisachieved.
SharesheldbyExecutiveDirectors
Sharesheldoutright Totalsharesandawards4 Guidelineshareholdingrequirement
ABP Total Guideline Sharesheld deferredshare LTIPshare sharesand shareholdingas outrightas awardsas awardsas awardsasDirector %ofsalary %ofsalary1 %ofsalary2 %ofsalary3 %ofsalary4
RichardSolomons 300 763 153 693 1,609KirkKinsell 200 557 180 776 1,513TracyRobbins 200 355 167 706 1,228TomSinger5 200 66 0 715 781
Percentagesarebasedonsharepriceof1,707.0ppershareasat31December2012.
1 SharesheldoutrightbyeachExecutiveDirectorwithnorestrictions.2 ABPdeferredshareawardssubjecttoriskofforfeitureifemploymentceases.3 LTIPshareawardssubjecttoachievementofcorporateperformancetargets.4 Includessharesheldoutright,ABPdeferredsharesandLTIPshareawards.5 TomSingerjoinedin2011anddidnotqualifyforthe2011ABPdeferredshareaward.
0 1,600200 400 600 800 1,000 1,200 1,400%
Richard Solomons
Kirk Kinsell
TomSinger
Tracy Robbins
I–PensionsIHGoperatesthefollowingpensionarrangementsinwhichtheExecutiveDirectorsparticipate:
•forUKexecutives,theexecutivesectionoftheICPlan,whichhasaDBsectionandaDCsection(theUKDBPlanandtheUKDCPlanrespectively);
•forUKexecutives,ICETUS;thisisanunfundedarrangement,butwithappropriatesecurity;
•forUSexecutives,theDCUS401(k)PlanandtheDCUSDeferredCompensationPlan;and
•forexecutivesoutsidetheUKandUS,theInterContinentalHotelsGroupInternationalSavingsandRetirementPlan,orotherlocalplans.
Asanalternativetothepensionarrangements,acashallowancemaybetakeninlieubyUKexecutives.
FollowinganextensiveUKpensionreviewandsubsequentconsultationswithaffectedemployees,itwasannouncedon29September2011thattheUKDBPlanwouldclosetofutureaccrualforexistingmemberswitheffectfrom1July2013.TheUKDBPlanisalreadyclosedtonewentrants.AcaponpensionablesalaryincreasesofRPIplus2.5%perannumbecameeffectiveon1October2011.
Aspartoftheconsultationwithemployeesandtheplantrusteesaboutthesechanges,itwasagreedthattheEnhancedEarlyRetirementFacility(EERF)wouldberetained.Thisprovidesanoptionforplanmembers,withtheCompany’sagreement,toretirewithinfiveyearsofnormalretirementageonaccruedbenefitswithoutreduction.ThelevelofplanfundingprovidesfortheEERF.TheCommitteeconsideredthatthereductioninriskandexpenseachievedbytheclosingoftheUKDBPlanjustifiedthecostofretainingtheEERFforexistingactivemembers.
TheExecutiveDirectorsparticipateasfollows:
•RichardSolomonsparticipatesintheUKDBPlanandtheICETUSonthesamebasisasotherseniorUK-basedexecutives;
•TracyRobbinsparticipatedintheexecutiveUKDCPlanonthesamebasisasotherseniorUK-basedexecutivesuntilMarch2012;fromApril2012shereceivedacashallowanceinlieuofpensionbenefits;
•TomSingerdoesnotparticipateinanypensionplanandreceivesacashallowanceinlieuofpensionbenefits;and
•KirkKinsellparticipatesintheDCUS401(k)PlanandtheDCUSDeferredCompensationPlan.
ThevalueofRichardSolomons’DBpensionarrangementasat31December2012issetouttotheright.
RichardSolomonsiseligiblefortheEERF,whichisavailabletoallmembersoftheUKDBPlan,asexplainedabove.Thisenablesmemberstoretirewithoutreductionintheirpensioniftheyarewithinfiveyearsofnormalretirementage.AlthoughtheEERFisnon-contractual,itscontinuationformedpartoftheagreementwithtrusteesonclosureoftheUKDBPlan.TheEERFtermsrequireanexecutivetoobtaintheconsentoftheCompany;theconsentisdiscretionarybutshouldnotbeunreasonablyrefused.
Accruedvalueofannualpensionifretired31December2012
Accruedvalueofannualpensionat31December2012,assumingretirementatnormalretirementage(9October2021)
£245,180,ofwhich:
•£46,770isfunded•£198,410isunfunded
£377,200,ofwhich:
•£71,950isfunded•£305,250isunfunded
Theincreaseintheaccruedvalueofthepensionin2012arisesprincipallyfromRichardSolomons’salaryreviewwhenappointedChiefExecutiveinJuly2011.
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Summary Directors’ Remuneration Report 57
58 IHG Annual Review and Summary Financial Statement 2012
Investor information
WebsiteandelectroniccommunicationAspartoftheCompany’scommitmenttoreducingthecostandenvironmentalimpactofproducinganddistributingprinteddocumentsinverylargequantities,IHG’sAnnualReportandAnnualReviewhavebeenmadeavailabletoshareholdersthroughtheCompany’swebsitewww.ihgplc.com/investorsunderfinanciallibrary.
ShareholdersmayappointelectronicallyaproxytovoteontheirbehalfonanypollthatistobeheldattheforthcomingAnnualGeneralMeeting.ShareholderswhoholdtheirsharesthroughCRESTmayappointproxiesthroughtheCRESTelectronicproxyappointmentservice,byusingtheproceduresdescribedintheCRESTManual.
ShareholderHotelDiscountPromotionIHGoffersdiscountedhotelstays(subjecttoavailability)forregisteredshareholdersthroughadedicated,controlledaccesswebsite.ForfurtherdetailspleasecontacttheCompanySecretariatdepartmenton01895512000oremailcompanysecretariat@ihg.com
CorporateResponsibilityReportIHGupdatesitsonlineCorporateResponsibilityReportregularly,coveringprogressonarangeofenvironmental,socialandcommunityissues.Thiscanbeviewedatwww.ihgplc.com/responsibility
IHGShelterinaStormProgrammeTheIHGShelterinaStormProgrammeenablesIHGtosupportourhotelsandsurroundingcommunities,employeesandguestswhenadisasterstrikes,byprovidingimmediateandvitalassistance.
Ifyouwouldliketomakeadonationtotheprogramme,youcandosoonlineviaasecurepaymentpagewww.ihgshelterinastorm.com
RegistrarForinformationonarangeofshareholderservicesincluding,enquiriesconcerningindividualshareholdings,notificationofashareholder’schangeofaddressandamalgamationofshareholderaccounts(inordertoavoidduplicatemailingofshareholdercommunications),shareholdersshouldcontacttheCompany’sRegistrar,Equiniti,on08713842132†* (callsfromwithintheUK)or+44(0)1214157034(callsfromoutsidetheUK).
Dividendservices
DividendReinvestmentPlan(DRIP)TheCompanyoffersaDRIPforshareholderstopurchaseadditionalIHGshareswiththeircashdividends.ForfurtherinformationabouttheDRIP,pleasecontactourRegistrarhelplineon08713842268†*.ADRIPapplicationformandinformationbookletareavailableatwww.shareview.co.uk/products/pages/applyforadrip.aspx
BankmandateWeencourageshareholderstohavetheirdividendspaiddirectlyintotheirUKbankorbuildingsocietyaccounttoensureefficientpaymentandfundsbeingclearedonthepaymentdate.
ShareholderswhowouldliketheirdividendstobepaiddirectlyintotheiraccountshouldcontactourRegistrar.
OverseaspaymentserviceItisalsopossibleforshareholderstohavetheirdividendspaiddirecttotheirbankaccountinalocalcurrency.Chargesarepayableforthisservice.Furtherinformationisavailableatwww.shareview.co.uk/shareholders/pages/overseaspayments.aspx
Outofdate/unclaimeddividendsIfyouthinkthatyouhaveoutofdatedividendchequesorunclaimeddividendpaymentspleasecontactourRegistrar.
IndividualSavingsAccount(ISA)EquinitioffersaStocksandSharesISAwhereIHGsharescanbeinvested.ForfurtherinformationpleasecontactEquinition08713842244†*.
SharedealingservicesEquinitioffersthefollowingsharedealingfacilities:
PostaldealingFormoreinformationcall08713842248†*.
TelephonedealingCall08456037037†•.
InternetdealingLogontowww.shareview.co.uk
ChangestothebasecostofIHGsharesDetailsofallthechangestothebasecostofIHGsharesheldsinceApril2003toDecember2012,forUKCapitalGainsTaxpurposes,maybefoundontheCompany’swebsitewww.ihgplc.com/investorsundershareholdercentre/taxinformation.
MissingshareholdersWorkingwithProSearch(anassetreunificationcompany),wecontinuetolookforshareholderswhohavenotkepttheircontactdetailsup-to-date.Wehavefundswaitingtobeclaimedandarecommittedtodoingwhatwecantopaythesetotheirrightfulowners.ForfurtherdetailspleasecontactProSearchon01732741411oremailinfo@prosearchassets.com
ShareholdersecurityManycompanieshavebecomeawarethattheirshareholdershavereceivedunsolicitedtelephonecallsorcorrespondenceconcerninginvestmentmatters.Thesearetypicallyfrom‘brokers’whotargetUKshareholders,offeringtosellthemwhatoftenturnouttobeworthlessorhigh-risksharesinUSorUKinvestments.Theseoperationsarecommonlyknownas‘boilerrooms’.MoredetailedinformationonthisorsimilaractivitycanbefoundontheFinancialServicesAuthoritywebsitewww.moneyadviceservice.org.uk
DetailsofanysharedealingfacilitiesthattheCompanyendorseswillbeincludedinCompanymailings.
AmericanDepositaryReceipts(ADRs)TheCompany’ssharesarelistedontheNewYorkStockExchangeintheformofAmericanDepositaryShares,evidencedbyADRsandtradedunderthesymbol‘IHG’.
EachADRrepresentsoneordinaryshare.AllenquiriesregardingADRholderaccountsandpaymentofdividendsshouldbedirectedtoJPMorganChase&Co,ourauthorisedADRdepositarybank(contactdetailsshownonpage59).
Form20-FTheCompanyissubjecttothereportingrequirementsoftheSecuritiesandExchangeCommission(SEC)intheUSandfileswiththeSECanAnnualReportonForm20-F.TheForm20-FcanbefoundontheCompany’swebsitewww.ihgplc.com/investorsundershareholdercentre/ADRholdersorbyvisitingtheSEC’swebsitewww.sec.gov/edgar.shtml
† Callscost8pperminuteplusnetworkextras.* Linesareopenfrom8.30amto5.30pmMondaytoFriday,
excludingUKpublicholidays.• Linesareopenfrom8.00amto4.30pmMondaytoFriday,
excludingUKpublicholidays.
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Investor information, Financial calendar and Contacts 59
Financial calendar
2012Interimdividendof13.5ppershare(21.0¢perADR): Paymentdate 28SeptemberSpecialdividendof108.4ppershare($1.72perexistingADR): Paymentdate 22OctoberFinancialyearend 31December
2013Preliminaryannouncementofannualresults 19FebruaryFinaldividendof27.7ppershare(43.0¢perADR): Ex-dividenddate 20March Recorddate 22MarchAnnouncementoffirstquarterinterimmanagementstatements 8MayAnnualGeneralMeeting 24MayFinaldividendof27.7ppershare(43.0¢perADR): Paymentdate 31MayAnnouncementofinterimresults 6AugustInterimdividend: Paymentdate OctoberAnnouncementofthirdquarterinterimmanagementstatements 5NovemberFinancialyearend 31December
2014Preliminaryannouncementofannualresults February
Contacts
RegisteredofficeBroadwaterParkDenhamBuckinghamshireUB95HR
Telephone +44(0)1895512000
Fax +44(0)1895512101
www.ihgplc.com
ForgeneralinformationabouttheGroup’sbusinesspleasecontacttheCorporateAffairsdepartmentattheaboveaddress.ForallotherenquiriespleasecontacttheCompanySecretariatdepartmentattheaboveaddress.
RegistrarEquinitiAspectHouseSpencerRoadLancingWestSussexBN996DA
Telephone 08713842132*†(UKcalls)
+44(0)1214157034(non-UKcalls)
www.shareview.co.uk*Forthosewithhearingdifficultiesatextphoneisavailableon08713842255†forUKcallerswithcompatibleequipment. †Callscost8pperminuteplusnetworkextras.Linesareopenfrom8.30amto5.30pmMondaytoFriday,excludingUKpublicholidays.
ADRdepositaryJPMorganChaseBankN.A.POBox64504St.PaulMN55164-0504USA
Telephone +18009901135(UScalls)(tollfree)
+16514532128(non-UScalls)
www.adr.com
AuditorsErnst&YoungLLP
InvestmentbankersBankofAmericaMerrillLynchGoldmanSachs
SolicitorsFreshfieldsBruckhausDeringerLLP
StockbrokersBankofAmericaMerrillLynchGoldmanSachs
PriorityClubRewardsIfyouwishtoenquireabout,orjoinPriorityClubRewards,IHG’sloyaltyprogramme,visitwww.priorityclub.comortelephone:
08712261111∞(inEurope)
+18882119874(inUSandCanada)(tollfree)
+18002729273(inMexico)(tollfree)
+18019753063(English)(inCentralandSouthAmerica)(tollchargesapply)
+18019753013(Spanish)(inCentralandSouthAmerica)(tollchargesapply)
+6328578788(frommostcountriesinAsiaPacific)(tollchargesapply)
+86(0)2034198282(MandarinandCantonese)(inChinaandHongKong)(tollchargesapply)
+97144290530(inMiddleEastandAfrica)(tollchargesapply)
∞Telephonecallstothisnumberarechargedat10pperminute.Standardnetworkratesapply.Callsfrommobileswillbehigher.
Forfurtherinvestorinformationvisitwww.ihgplc.com/investors
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60 IHG Annual Review and Summary Financial Statement 2012
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