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IHG Corporate Responsibility 1

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Agenda

Part 1: Our Approach & Why it Matters Part 2: Our CR Programmes & 2012 Achievements Part 3: 2013-2017 Targets Part 4: Questions Part 5: Appendix

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Part 1: Our Approach & Why it Matters

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Being a Responsible Business is in our DNA

“Being a Responsible Business will enable us to stay ahead of the competition and grow, creating value for all of our shareholders and

stakeholders in the long-term. That’s why Responsible Business underpins Brands, People and Delivery and is central to our vision of

being one of the great companies of the world.” Richard Solomons, CEO

4 Source: Annual Report 2012

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Our CR Committee

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IHG Board

Corporate Responsibility Committee

Jennifer Laing

Ying Yeh Richard Solomons

CEO

Non-Executive Directors

George Turner

Secretary Chair

Luke Mayhew

Dale Morrison

Patrick Cescau

Non-Executive Board Chairman

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Behaving responsibly is central to everything we do

“Great Hotels Guests Love” Priorities for high quality growth

RESPONSIBLE BUSINESS PRACTICE

BEST IN CLASS

DELIVERY

TALENTED PEOPLE

PREFERRED BRANDS

GROW MARKET SHARE SUSTAINABLE MARGIN GROWTH

INVEST IN GROWTH

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The value journey for CR at IHG

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CR Ambition

To create more sustainable communities and better lives…

How we get there

IHG Green Engage IHG Academy IHG Shelter in a Storm Programme

Outcomes Enhanced: - owner profitability - hotel revenue share - reputation for IHG - value as a franchisor - employee engagement Great Hotels Guests Love

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Shared value defined

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“More and more, companies are creating shared value by developing profitable business strategies that deliver tangible social benefits. This thinking is creating major new opportunities for profit and competitive advantage at the same time as it benefits society by unleashing the power of business to solve fundamental global problems.” *

* Measuring Shared Value: How to Unlock Value by Linking Social and Business Results. Report authored by Michael E. Power, Greg Hills, Marc Pfitzer, Sonja Patscheke, and Elizabeth Hawkins

Business value

Social value

Shared value

Incremental value

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Creating shared value is at the heart of our CR strategy

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Charity Create

new value

Control • Costs • Risks

Compliance (Must Haves) So

ciet

al v

alue

-add

ed

Build competitive advantage by managing cost & guest

preference

Do positive good

Do no harm

Business as usual

Business value-added

Shared Value initiatives:

IHG Green Engage, IHG Academy, IHG Shelter in a

Storm Programme

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Part 2: Our CR Programmes & 2012 Achievements

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A re-cap of our 2012 priorities

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Drive environmental sustainability

Make a positive impact on the local

community

Engage stakeholders to champion and

protect the trusted reputation of IHG

and its brands

Make Corporate Responsibility a differentiator for

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• Enrol more hotels on IHG Green Engage

• Maximise hotel benefits

• 6% – 10% energy reduction 2010 – 2012*

• IHG Academy: accelerate global roll out

• IHG Shelter in a Storm Programme: build support and awareness

• Engage with our stakeholders through stakeholder engagement process and channels

• Deliver meaningful competitive distinction

• Drive greater share of spend and increased profitability

* per available room in our owned and managed estate, against a 2009 baseline

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IHG Green Engage

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IHG Green Engage: an online system which enables us to manage the environmental impact of our hotels, without compromising the guest experience.

2012 priorities Achievements

6% - 10% energy reduction over 3 years to 2012, in our owned and managed estate

Exceeded: reduction of 11.7% 50% of our estate enrolled on IHG Green Engage

Achieved 50% in January 2013 Enhance the quality of IHG Green Engage use

Launched new carbon calculator, benchmarking and updated Green Solutions.

*Regional use of IHG Green Engage data as at 9 September 2013. This may include hotels which are not yet open. Open estate data based on last reported data as at 30 June 2013.

About IHG Green Engage

Regional use of IHG Green Engage Americas Europe AMEA G. China Total

Number of hotels* 1,773 289 255 227 2,544

% of open estate 49% 43% 100% 100% 55%

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IHG Academy

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About IHG Academy

IHG Academy is a public private partnership between IHG hotels and either a local community or education establishment that provides local people with skills development and employment opportunities in one of the world’s largest hotel companies.

2012 priorities Achievements

To expand the IHG Academy to 150 programmes globally

157 IHG Academy programmes at the year end

To develop an ‘IHG Academy Online Toolkit’ Launched the IHG Academy website, which includes an IHG Academy toolkit

External recognition Awarded the Business in the Community Work Inspiration Impact Award in 2013

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2012 priorities Achievements

To hold fundraising events in each region for the IHG Shelter in a Storm Programme

Raised $545,000 Supported 10 disasters across six countries 198 fundraising events held at out hotels and offices

To launch an online donations request process Launched the IHG Shelter in a Storm Programme website, which enables online donations

IHG Shelter in a Storm Programme

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About IHG Shelter in a Storm Programme

The IHG Shelter in a Storm Programme helps our hotels support guests, colleagues and local communities in times of need. We provide our hotels with guidance on when and how best to respond when disasters occur.

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Engaging our stakeholders

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• Our stakeholders play a key role in helping us identify and tackle our priorities and engaging with them also helps us to champion and protect IHG's trusted reputation.

• We are committed to working to the highest ethical standards

• Continue to drive awareness of our Human Rights policy and approach

• Endorsed the United Nations Global Compact

• Participated in the International Tourism Partnership’s Human Trafficking Working Group and we endorse the industry statement on human trafficking

• Delivered Human Rights training across our hotels in the UK in advance of the London 2012 Olympic & Paralympic Games

IHG Human Rights Policy

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Part 3: 2013 – 2017 Targets

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Our 2013-2017 priorities and targets

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Environmental Sustainability Minimise the

environmental impacts of our hotel operations and protect our social license

to operate

Sustainable Communities Maximise our positive contribution to society by

creating shared value in our communities and with our business partners

Track and report supply chain diversity and integrate CR criteria into the selection and evaluation process for all preferred suppliers

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Environmental Sustainability 2013-2017 Targets

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Carbon

To be achieved through the effective use of IHG Green Engage Carbon footprint reduction 12% per occupied room 2011 – 2012 from a 2010 baseline.

Reduce carbon footprint per occupied room by 12%*

Water

To be achieved through the effective use of IHG Green Engage. In stressed areas, water costs tend to be high, so reduced water controls costs and protects profitability.

Reduce water use per occupied room in water-stressed areas 12%*

* Note: Target includes all owned, managed and franchised hotels on IHG Green Engage

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Sustainable Communities 2013-2017 Targets

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Building skills and employability

Continue global roll out of the IHG Academy. Focus on driving participant numbers and the percentage hired in our hotels. Over 10,000 people have been trained on IHG Academy programmes since it was launched in 2006.

Provide skills and improved employability to 20,000 people via IHG

Academy

Community contribution

Continued roll out and employee engagement of the IHG Shelter in a Storm Programme. Increased number of colleagues involved in fundraising events for the IHG Shelter Fund.

Contribute a total of $10M to communities through monetary donations and in-kind support, including the IHG Shelter in a

Storm Programme

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Diversity and Preferred Supplier Selection 2013-2017 Targets

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Supply chain diversity

Record data on supplier diversity statistics Demonstrate to corporate clients how we are supporting diverse businesses.

Track and report supply chain diversity

CR integration in preferred supplier selection

Include environmental sustainability and community impacts in IHG direct purchasing and approved supplier decisions. Work with suppliers that have a ‘positive’ impact in terms of environment, community and/or diversity.

Integrate CR criteria into the selection and evaluation process

for all preferred suppliers

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Summary

• IHG’s shared value approach to CR is integral to Group Strategy

• Backed from the top by a dedicated CR Board Committee

• Industry leading approach that is relevant to our industry; delivered through our core programmes

– IHG Green Engage

– IHG Academy

– IHG Shelter in a Storm Programme

• New CR targets for 2013-2017

– To deliver multiple business benefits

– Maintain IHG’s position within the industry

– Aligned to our core programmes

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Questions

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Appendix

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Learn more

CR Report An award winning CR report, recognised as best practice in PWC ‘sustainability reporting tips’ in 2012 www.ihg.com/responsibility

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IHG Planet CR on Facebook The only hotel Industry Facebook page dedicated to CR with over 21,000 fans www.facebook.com/IHGCorporateResponsibility

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Definitions

Carbon footprint: A carbon footprint is a measure of the total amount of greenhouse gas emissions produced

by an activity or event, or in our case hotel operations.

Carbon footprint – how we measure it: Scope 1 and 2 of a hotel’s greenhouse gas emissions are calculated

using data submitted through IHG Green Engage. This data is extrapolated across the remainder of the IHG

estate. The total carbon footprint is divided by the total number of occupied rooms to give the carbon footprint

per occupied room.

IHG Green Engage 2012 target: to have 50% of hotels enrolled in IHG Green Engage was reached on 14

January 2013.

The United Nations (2003) describes water scarcity as “The point at which the aggregate impact of all users

impinges upon the supply or quality of water under prevailing institutional arrangements to the extent that the

demand by all sectors, including the environment, cannot be satisfied fully.” WWF, Understanding Water

Risks.

Water stressed areas defined according to analysis by WWF (see map on following slide).

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Definitions

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Hotel & Room Count at 30 June 2013

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Franchised Managed Owned & Leased Total

Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms

InterContinental 28 8,096 20 7,855 3 1,492 51 17,443 Crowne Plaza 166 43,785 11 3,488 0 0 177 47,273 Holiday Inn 789 137,427 17 5,325 2 910 808 143,662 Holiday Inn Express 1,960 171,261 1 252 0 0 1,961 171,513 Staybridge Suites 159 16,750 26 3,215 0 0 185 19,965 Candlewood Suites 243 21,532 61 7,551 0 0 304 29,083 Hotel Indigo 34 3,825 3 515 0 0 37 4,340 Other 3 7,279 77 11,947 0 0 80 19,226 Americas 3,382 409,955 216 40,148 5 2,402 3,603 452,505

InterContinental 8 1,912 21 6,925 1 470 30 9,307 Crowne Plaza 71 16,412 12 2,926 0 0 83 19,338 Holiday Inn 216 33,844 64 11,476 0 0 280 45,320 Holiday Inn Express 210 24,777 1 118 0 0 211 24,895 Staybridge Suites 4 605 0 0 0 0 4 605 Hotel Indigo 11 1,025 0 0 0 0 11 1,025 Europe 520 78,575 98 21,445 1 470 619 100,490

InterContinental 7 2,524 58 18,112 1 380 66 21,016 Crowne Plaza 8 1,690 56 16,800 0 0 64 18,490 Holiday Inn 20 3,950 54 13,099 1 207 75 17,256 Holiday Inn Express 9 2,127 3 750 0 0 12 2,877 Staybridge Suites 0 0 2 304 0 0 2 304 Other 4 830 7 1,338 0 0 11 2,168 AMEA 48 11,121 180 50,403 2 587 230 62,111

InterContinental 1 570 21 8,441 1 503 23 9,514 Crowne Plaza 0 0 62 22,279 0 0 62 22,279 Holiday Inn 2 1,476 62 19,398 0 0 64 20,874 Holiday Inn Express 1 138 37 9,512 0 0 38 9,650 Hotel Indigo 0 0 4 543 0 0 4 543 Greater China 4 2,184 186 60,173 1 503 191 62,860

InterContinental 44 13,102 120 41,333 6 2,845 170 57,280 Crowne Plaza 245 61,887 141 45,493 0 0 386 107,380 Holiday Inn 1,027 176,697 197 49,298 3 1,117 1,227 227,112 Holiday Inn Express 2,180 198,303 42 10,632 0 0 2,222 208,935 Staybridge Suites 163 17,355 28 3,519 0 0 191 20,874 Candlewood Suites 243 21,532 61 7,551 0 0 304 29,083 Hotel Indigo 45 4,850 7 1,058 0 0 52 5,908 Other 7 8,109 84 13,285 0 0 91 21,394 Total System Size 3,954 501,835 680 172,169 9 3,962 4,643 677,966

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Pipeline at 30 June 2013

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Franchised Managed Owned & Leased Total

Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms

InterContinental 2 437 4 990 0 0 6 1,427 Crowne Plaza 16 3,851 2 270 0 0 18 4,121 Holiday Inn 130 17,714 2 441 0 0 132 18,155 Holiday Inn Express 358 33,606 0 0 0 0 358 33,606 Staybridge Suites 67 6,905 1 197 0 0 68 7,102 Candlewood Suites 83 7,235 0 0 0 0 83 7,235 Hotel Indigo 18 2,211 2 440 0 0 20 2,651 EVEN 0 0 2 380 1 161 3 541 Other 0 0 3 264 0 0 3 264 America 674 71,959 16 2,982 1 161 691 75,102

InterContinental 0 0 1 216 0 0 1 216 Crowne Plaza 6 963 5 1,603 0 0 11 2,566 Holiday Inn 20 3,137 3 1,491 0 0 23 4,628 Holiday Inn Express 43 6,097 0 0 0 0 43 6,097 Staybridge Suites 1 168 0 0 0 0 1 168 Hotel Indigo 14 1,415 0 0 0 0 14 1,415 Europe 84 11,780 9 3,310 0 0 93 15,090

InterContinental 0 0 20 5,365 0 0 20 5,365 Crowne Plaza 0 0 16 4,622 0 0 16 4,622 Holiday Inn 4 742 44 10,616 0 0 48 11,358 Holiday Inn Express 0 0 37 7,371 0 0 37 7,371 Staybridge Suites 0 0 7 908 0 0 7 908 Hotel Indigo 0 0 7 1,212 0 0 7 1,212 AMEA 4 742 131 30,094 0 0 135 30,836

InterContinental 0 0 25 11,610 0 0 25 11,610 Crowne Plaza 0 0 52 18,508 0 0 52 18,508 Holiday Inn 0 0 42 12,352 0 0 42 12,352 Holiday Inn Express 0 0 35 8,237 0 0 35 8,237 Hotel Indigo 0 0 6 760 0 0 6 760 HUALUXE 0 0 19 6,264 0 0 19 6,264 Greater China 0 0 179 57,731 0 0 179 57,731

InterContinental 2 437 50 18,181 0 0 52 18,618 Crowne Plaza 22 4,814 75 25,003 0 0 97 29,817 Holiday Inn 154 21,593 91 24,900 0 0 245 46,493 Holiday Inn Express 401 39,703 72 15,608 0 0 473 55,311 Staybridge Suites 68 7,073 8 1,105 0 0 76 8,178 Candlewood Suites 83 7,235 0 0 0 0 83 7,235 Hotel Indigo 32 3,626 15 2,412 0 0 47 6,038 HUALUXE 0 0 19 6,264 0 0 19 6,264 EVEN 0 0 2 380 1 161 3 541 Other 0 0 3 264 0 0 3 264 Total Pipeline 762 84,481 335 94,117 1 161 1,098 178,759