Slide 1: H1 2020 Results
H1 2020 Results August 4', 2020 A ACCOR
Slide 2: Limitations and qualifications
By reading the following presentation slides, you further agree to be bound by the following limitations and qualifications: This presentation is for information purposes only and does not constitute an offer or solicitation for the sale or purchase of any securities, any part of the business or ass
Slide 3: Opening remarks
Opening remarks Sébastien Bazin Chairman & CEO
Slide 4: Covid-19 crisis takes the world decades back
Covid-19 crisis takes the world decades back Key facts GDP growth since 1980 8 6 • Across all countries worldwide 4 • Worst World GDP drop in 40 years (IMF) 2 0 (1.0)% • Worst unemployment rate in 40 years (ILO) -2 (3.0)% -4 Advanced economies • Lowest international travel in 30 years (WTO) Developi
Slide 5: Impact on Travel & Leisure industry is massive
Impact on Travel & Leisure industry is massive About 1bn reduction expected $3.4tn Travel & Leisure contribution to GDP from 1.4bn in international travellers contraction and 121m job losses expected 1462 1408 1333 Revenue Jobs 1243 1197 1143 997 1044 1097 -39% -37% 952 913 930 893 856 810 757 675 6
Slide 6: Industry slowly recovering
Industry slowly recovering % of countries with borders closed Global RevPAR trends US Europe China • Number of countries under during 2 months 92% • Close borders 74% • Nombre de cas dans 72% le monde -50% • Nombre 53% de pays touchés 55% • Nombre de vols annulés 8% Europe NCAC MEA Asia-Pacific Sout
Slide 7: H1 2020 Results
H1 2020 Results Jean-Jacques Morin Deputy CEO
Slide 8: Severe financial impacts on H1 performance
Severe financial impacts on H1 performance Business Momentum Financial Performance -59.3% L/L system RevPAR €917m Revenue with -88.2% in Q2 down (48.8)% L/L 31.0% system Occupancy €(227)m EBITDA with 14.7% in Q2 81% of hotel open Recurring FCF to date at €(473)m
Slide 9: Immediate measures to protect earnings and financial headroom
Immediate measures deployed to protect earnings & financial headroom Improved operating leverage Reduced Cash Burn Reinforced balance sheet H1 20 EBITDA sensitivity to H1 20 monthly RevPAR at less than €20m cash burn reduced to €80m More than €4bn liquidity position 60% G&A annual cost savings €60m
Slide 10: Key achievements despite the unprecedented crisis
Accor key achievements despite the unprecedented crisis Completed transactions Recruited Loyal Guests Pursued development +4.3% LTM net Organic €1.06bn proceeds System Growth +2.3m members 12k rooms added in H1 Stable pipeline at 206k rooms 66m loyalty members 28% of the portfolio €429m reduction of
Slide 11: +4.3% LTM net Organic System Growth
+4.3% LTM net Organic System Growth In rooms, as of June 2020 346k Network Hotels 5,099 236k Rooms 748k 99k Pipeline 65k 61k 47k 44k 39k Hotels 1,197 13k 3k Rooms 206k Europe Asia-Pacific Middle East South America North America, & Africa Central America & the Caribbean
Slide 12: (59)% RevPAR decline in H1 with Q2 at (88)%
Occupancy Rate (59)% RevPAR decline in H1 20 with Q2 at (88)% Average Room Rate RevPAR L/L Europe Asia Pacific 5.1% 3.3% 1.2% 1.0% 0.3% -0.6% -1.1% -1.9% Asia Pacific -23.2% -33.7% -77.4% -90.6% Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Rest of the World Group 5.0% 2.8%
Slide 13: After April trough, progressive improvement
After April trough, progressive improvement RevPAR recovers after the trough 81% of hotel open to date of April & May -25% 81% -50% to date -75% 38% as of end-April -90% Mar-20 Apr-20 May-20 Jun-20 Jul-20 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20e
Slide 14: H1 Group revenue down (49)% on a L/L basis
H1 20 Group revenue down (49)% on a L/L basis In € millions H1 H1 Reported L/L 2019 2020 change change HotelServices 1,366 650 (52.4)% (52.8)% Hotel Assets 519 237 (54.4)% (40.2)% New Businesses 77 46 (40.3)% (40.5)% Holding & Intercos (36) (16) N/A N/A Total 1,926 917 (52.4)% (48.8)% MGallery Hotel
Slide 15: Management & Franchise revenue down (72)% L/L
Management & Franchise revenue down (72)% on a L/L basis H1 H1 L/L In € millions 2019 2020 change Europe 245 62 (74.9)% ASPAC 100 29 (70.8)% MEA 52 17 (72.5)% NCAC 65 23 (66.0)% South America 24 8 (62.1)% Total 486 139 (72.0)% Sofitel Rabat Jardin des Roses - Maroc
Slide 16: EBITDA reflects reduced sensitivity to RevPAR
EBITDA reflects a reduced sensitivity to RevPAR to less than €20m per point In € millions H1 H1 Reported L/L 2019 2020 change change HotelServices 344 (141) (140.9)% (140.0)% Hotel Assets 97 (10) (110.5)% (87.9)% New Businesses (1) (16) N/A N/A Holding & Intercos (65) (60) N/A N/A Total 375 (227) (1
Slide 17: EBITDA impact on HotelServices notably driven by SMDL
EBITDA impact on HotelServices notably driven by SMDL Hotel M&F Services to Owners Services Reimbursed Other In € millions SMDL(1) STO (2) costs services (2) (1)+(2) (1) (a) (b) (c) (a)+(b)+(c) Revenue 139 164 297 49 511 650 H1 2020 EBITDA 0 (131) (0) (9) (141) (141) Revenue 486 354 470 55 879 1366
Slide 18: Impact on Hotel Assets mitigated by variabilized costs
Impact on Hotel Assets mitigated by variabilized costs and actions Portfolio Revenue EBITDA €(10)m EBITDA 30k (56)% L/L down (87.9)% L/L rooms RevPAR decrease 12k mitigated through leased rooms in €237m revenue • Severance in Brazil Brazil down (40.2)% L/L • Variable lease in Brazil 7k • Furloughing
Slide 19: From EBITDA to Net Profit
From EBITDA to Net Profit In € millions H1 2019 H1 2020 EBITDA 375 (227) Depreciation, amortization and provision (141) (137) AccorInvest (a) • EBIT 234 (363) • Huazhu • sbe Share of net losses of associates and JVs (14) (353) (a) Non-recurring items (o/w impairments) (6) (1,000) (b) (b) Non-current
Slide 20: Monthly cash burn lowered from €100m to €80m
Monthly cash burn lowered from €100m to €80m In € millions H1 2019 H1 2020 EBITDA 375 (227) Cost of net debt (31) (28) Income tax (cash) (39) 1 Reimbursement of lease liabilities (67) (47) Non-cash items & other 54 69 FUNDS FROM OPERATIONS 293 (232) Recurring investment (75) (61) Working capital and
Slide 21: Improved liquidity position & reduced net debt
Improved liquidity position & reduced net debt Liquidity position Net debt From December 2019 to June 2020 €(119)m €290m €(300)m • June 2020 More than €4bn €(161)m €1,003m liquidity position €1,333m €(473)m €1,092m • July 2020 Tax cash refund (€300m) Net Debt Orbis Recurring Hybrid SBB Others HQ Net
Slide 22: Closing remarks
Closing remarks Sébastien Bazin Chairman & CEO
Slide 23: Reacting to the unprecedented shock and preparing for the future
Reacting to the unprecedented shock and preparing for the future Taking care of the local communities (Staff, Guests, Owners) Restore confidence in travelling Launch of AllSafe label certification Learn from the crisis implications • Changes in guests behaviors • Stress test of the business model Pu
Slide 24: In depth Zero-Based Budget process completed
In depth “Zero-Based Budget” process completed A granular & disciplined approach Leading to saving levers • Build fact base • Eliminate & streamline tasks over 7,000 activities mapped • Management structure • Select fact based improvement areas • Frugality targeting non value-added activities • Real
Slide 25: €200m recurring savings on €1.2bn HotelServices cost base
€200m RECURRING savings on €1.2bn HotelServices cost base M&F and Holding • Management structure • Organizational simplification • Automation Sales, Marketing, Distribution & Loyalty • Contractors • IT 20-month payback • 2/3 achieved as of end-2021, • 100% achieved as of end-2022 Mgallery Veranda Re
Slide 26: Moving from an asset-light model to an asset-light company
Moving from an asset-light model to an asset-light company Accor will emerge stronger and is fully ready to rebound • Leaner cost structure & more focused organization • Higher profitability and cash conversion potential • Solid balance sheet Driven by long-term vision & values • High sense of respo
Slide 27: Appendices
Appendices Novotel Melbourne South Wharf - Australia
Slide 28: H1 margin for Management & Franchise
H1 margin for Management & Franchise In € millions Management & Services to HotelServices Franchise Owners Revenue 139 511 650 H1 2020 EBITDA 0 (141) (141) Margin (0.0)% (27.5)% (21.6)% Revenue 486 879 1,366 H1 2019 EBITDA 353 (9) 344 Margin 72.6% (1.1)% 25.2% Grand Plaza Mövenpick Media City
Slide 29: H1 2020 Revenue – From Like-for-Like to Reported
H1 2020 Revenue – From Like-for-Like to Reported Like-for-Like HotelServices: (52.8)% L/L (1) (48.8)% €(939)m New businesses: (40.5)% L/L Hotel Assets: (40.2)% L/L Perimeter M&A (3.0)% €(57)m Slight negative currency effect Currency (0.7)% €(13)m • USD: €7m • AUD: €(10)m • BRL: €(10)m Reported (52.4
Slide 30: Q2 Group revenue down (79)% on a L/L basis
Q2 20 Group revenue down (79)% on a L/L basis In € millions Q2 Q2 Reported L/L 2019 2020 change change HotelServices 720 110 (84.8)% (84.3)% Hotel Assets 260 30 (88.3)% (67.2)% New Businesses 40 14 (65.5)% (65.4)% Holding & Intercos (19) (5) N/A N/A Total 1,002 149 (85.1)% (79.2)% Fairmont El San Ju
Slide 31: Q2 Management & Franchise revenue
Q2 20 Management & Franchise revenue Q2 Q2 L/L In € millions 2019 2020 change Europe 143 (9) (106.3)% ASPAC 45 (1) (100.7)% MEA 27 (2) (106.1)% NCAC 34 2 (93.1)% South America 13 (1) (111.1)% Total 261 (11) 21c Chicago – USA (103.8)%
Slide 32: Q2 2020 Revenue – From Like-for-Like to Reported
Q2 2020 Revenue – From Like-for-Like to Reported Like-for-Like HotelServices: (84.3)% L/L (1) (79.2)% €(794)m New businesses: (65.4)% L/L Hotel Assets: (67.2)% L/L Perimeter M&A (5.0)% €(50)m Slight negative currency effect Currency (0.9)% €(9)m • USD: €1m • CAD: €(1)m • AUD: €(3)m • BRL: €(4)m Repo
Slide 33: RevPAR
Sofitel Mexico City Reforma – Mexico 1 RevPAR
Slide 34: RevPAR – Systemwide
RevPAR – Systemwide Q2 2020 H1 2020 OR ARR RevPAR OR ARR RevPAR Lux. & Upscale 13.9 -53.6 79 -46.3 11 -89.4 29.3 -36.5 133 -12.0 39 -60.9 Midscale 14.5 -58.4 57 -30.7 8 -87.5 31.5 -37.1 79 -8.6 25 -58.4 Economy 15.3 -57.6 38 -31.3 6 -87.1 31.8 -36.5 50 -10.0 16 -58.6 SYSTEMWIDE 14.7 -56.7 54 -36.9 8
Slide 35: RevPAR – Geographical breakdown (1/2)
RevPAR – Geographical breakdown (1/2) Q2 2020 H1 2020 OR ARR RevPAR OR ARR RevPAR Lux. & Upscale 5.3 -70.2 123 -22.2 6 -97.3 24.2 -42.1 147 -9.5 36 -67.2 Midscale 8.5 -67.5 73 -23.5 6 -92.0 28.2 -41.2 88 -7.7 25 -62.8 Economy 11.3 -65.1 54 -19.9 6 -88.3 30.2 -39.8 60 -8.3 18 -60.5 EUROPE 9.8 -66.3 6
Slide 36: RevPAR – Geographical breakdown (2/2)
RevPAR – Geographical breakdown (2/2) Q2 2020 H1 2020 OR ARR RevPAR OR ARR RevPAR Lux. & Upscale 11.3 -52.5 92 -39.5 10 -90.7 32.2 -33.3 126 -14.8 41 -58.8 Midscale 24.5 -36.1 59 -7.9 14 -59.4 41.3 -23.3 69 -3.6 29 -36.7 Economy 17.0 -43.4 43 -8.9 7 -72.8 34.8 -27.8 55 -1.8 19 -43.7 MEA 14.9 -47.6 7
Slide 37: RevPAR – France
RevPAR – France Q2 2020 H1 2020 OR ARR RevPAR OR ARR RevPAR Lux. & Upscale 5.5 -70.4 187 -18.2 10 -94.0 25.3 -42.8 189 -9.1 48 -65.9 Midscale 9.0 -65.5 86 -23.5 8 -91.0 27.3 -39.4 101 -7.6 28 -62.1 Economy 14.1 -60.3 54 -17.7 8 -85.1 31.1 -36.8 60 -6.7 19 -57.7 FRANCE 12.2 -62.2 64 -26.8 8 -88.6 29.
Slide 38: Portfolio
Banyan Tree Phuket - Thailand 2 Portfolio
Slide 39: Portfolio as of June 30th, 2020 (1/2)
Portfolio as of June 30th, 2020 (1/2) OWNED & LEASED MANAGED FRANCHISED TOTAL # hotels # rooms # hotels # rooms # hotels # rooms # hotels # rooms Luxury & Upscale 5 2,060 137 25,829 64 11,309 206 39,198 Midscale 29 3,608 351 58,782 596 64,146 976 126,536 Economy 21 3,270 600 78,482 1,250 99,013 1,87
Slide 40: Portfolio as of June 30th, 2020 (2/2)
Portfolio as of June 30th, 2020 (2/2) OWNED & LEASED MANAGED FRANCHISED TOTAL # hotels # rooms # hotels # rooms # hotels # rooms # hotels # rooms Luxury & Upscale 1 53 74 28,256 9 3,105 84 31,414 Midscale 0 0 7 2,711 7 1,400 14 4,111 Economy 0 0 20 2,649 4 503 24 3,152 NCAC 1 53 101 33,616 20 5,008
Slide 41: Exchange rates
Sofitel Beijing Central – Beijing, China 3 Exchange rates
Slide 42: Q2 2020 Exchange Rates
Q2 2020 Exchange Rates Q2 2019 Q2 2020 Q2 2019 1€ = X foreign currency Average Rate Average Rate vs. Q2 2020 Australian Dollar (AUD) 1.60 1.69 (5.0)% Brazilian Real (BRL) 4.41 5.88 (25.1)% Canadian Dollar (CAD) 1.50 1.53 (1.4)% Egyptian Pound (EGP) 19.13 17.47 +9.5% British Sterling (GBP) 0.87 0.89
Slide 43: H1 2020 Exchange Rates
H1 2020 Exchange Rates H1 2019 H1 2020 H1 2019 1€ = X foreign currency Average Rate Average Rate vs. H1 2020 Australian Dollar (AUD) 1.60 1.68 (4.6)% Brazilian Real (BRL) 4.34 5.37 (19.1)% Canadian Dollar (CAD) 1.51 1.50 +0.5% Egyptian Pound (EGP) 19.59 17.43 +12.4% British Sterling (GBP) 0.87 0.87
Slide 44: Glossary
Pullman Bangkok Kong Power - Thailand 4 Glossary
Slide 45: Glossary
Glossary Region organization • Europe (including France & Switzerland) • MEA: Middle-East and Africa • ASPAC: Asia Pacific Region • NCAC: North & Central America & Caribbean • South America Like-for-like (L/L) definition for P&L figures • Foreign exchange changes vs. Euro are cancelled applying the
Slide 46: ACCOR
ACCOR RAFFLES \ ORIENT EXPRESS \ BANYAN TREE \ DELANO \ SOFITEL LEGEND \ FAIRMONT \ SLS \ SO \ SOFITEL \ THE HOUSE OF ORIGINALS RIXOS \ ONEFINESTAY \ MANTIS \ MGALLERY \ 21C \ ART SERIES \ MONDRIAN \ PULLMAN \ SWISSOTEL \ ANGSANA 25HOURS \ HYDE \ MOVENPICK \ GRAND MERCURE \ PEPPERS \ THE SEBEL \ MAN