Accor Sa · EURONEXT:AC
Accor Sa — H1 2022 Earnings Presentation
39 slides from Accor Sa's earnings presentation, Jul 28, 2022
Slide 1: H1 2022 Results
H1 2022 Results July 28, 2022 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 document does not constitute the 2022 Interim Financial report, which will be separately published on the website (www.group.accor.com). This presentation is for informat
Slide 3: Opening remarks
Opening remarks Sébastien Bazin Chairman & CEO
Slide 4: Strong Recovery Fuelled by Pent-Up Demand
Strong Recovery Fuelled by Pent-Up Demand Upgraded expectations since June All-time high prices over Q2 2022 for international travelers London +14% international travellers China +11% 155m +11% In million 824m 912m Paris RoW 415m 1,304m Sydney +7% 2019 2021 2022 as 2022 as Source: UNWTO of Jan. of
Slide 5: H1 2022 Results
H1 2022 Results Jean-Jacques Morin Deputy CEO
Slide 6: H1 2022 Financial Highlights
H1 2022 Financial Highlights Top line now close to 2019 Strong profitability rebound 1 Q2 22 RevPAR 1 €205m EBITDA +1% L/L vs. 2019 vs.€(120)m in H1 2021 H1 22 RevPAR (11)% L/L vs. 2019 2 Net Unit Growth at +1.8% LTM 2 €41m Recurring FCF FY22 guidance confirmed at c.+3.5% vs. €(260)m in H1 2021 3 €1
Slide 7: RevPAR back to 2019 with Pricing Power in all Regions
RevPAR back to 2019 with Pricing Power in all Regions South Europe North Europe Asia Pacific +2% -7% -17% -21% -18% -25% -37% -38% -39% -38% -43% -48% -55% -57% -63% -63% -74% -82% Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2021 2022 2021 2022 IMEAT +32% Americas Group +5% +8% +
Slide 8: LTM Net Unit Growth of +1.8%
LTM Net Unit Growth of +1.8% In rooms, as of June 2022 237k Network 180k Hotels 5,300 164k Rooms 778k 97k 102k 94k 45k Pipeline 40k 15k 15k Hotels 1,215 Rooms 212k South Europe North Europe Asia-Pacific IMEAT Americas
Slide 9: Group Revenue Growth well in line with RevPAR
Group Revenue Growth well in line with RevPAR H1 H1 Reported L/L L/L In € millions 2021 2022 vs. H1 21 vs. H1 21 vs. H1 19 HotelServices 545 1,276 +134% +119% (12)% Hotel Assets & Other 281 462 +64% +57% (8)% Holding & Intercos (3) (14) N/A N/A N/A Total 824 1,725 +109% +97% (10)% Pullman Tbilisi Ax
Slide 10: M&F Revenue: Incentives coming back Fast towards 2019 Level
M&F Revenue: Incentives coming back Fast towards 2019 Level H1 H1 L/L L/L In € millions 2021 2022 vs. H1 21 vs. H1 19 South Europe 41 115 +175% (9)% North Europe 24 105 +302% (19)% ASPAC 43 58 +28% (41)% IMEAT 24 75 +205% +17% Americas 31 81 +141% (11)% Total 163 434 +153% (15)% Pullman Nanchang Xin
Slide 11: Strong EBITDA Rebound
Strong EBITDA Rebound H1 H1 Reported L/L L/L In € millions 2021 2022 vs. H1 21 vs. H1 21 vs. H1 19 HotelServices (78) 208 N/A N/A (35)% Hotel Assets & Other 25 58 +132% +133% (15)% Holding & Intercos (66) (60) N/A N/A N/A Total (120) 205 N/A N/A (35)% Mercure Benidorm, Spain
Slide 12: A Positive Net Profit for H1 2022
A Positive Net Profit for H1 2022 In € millions H1 2021 H1 2022 EBITDA (120) 205 Depreciation and amortization (118) (107) EBIT (239) 99 (a) Share of net losses of associates and JVs (213) (27) (a) Mainly AccorInvest Non-recurring items 585 (b) 25 (b) Huazhu capital gain Operating profit 134 97 Net
Slide 13: Back to Positive Cash Generation
Back to Positive Cash Generation In € millions H1 2021 H1 2022 EBITDA (120) 205 Cost of net debt (40) (40) Income tax paid (6) (31) Lease payments (42) (36) Non-cash items & other 29 23 FUNDS FROM OPERATIONS (179) 121 Recurring investments (39) (55) Working capital (43) (25) RECURRING FREE CASH FLOW
Slide 14: Disciplined Financial Management
Disciplined Financial Management Sources of funds Usage of funds 1 Sound debt structure 1 Cash preservation efforts • 75% at fixed rate by nature • Controlled CAPEX • Decrease of the cost of debt to 1.9% • No significant acquisition anticipated 2 No significant maturity over the short term 2 Delever
Slide 15: Closing remarks
Closing remarks Sébastien Bazin Chairman & CEO
Slide 16: A new Phase in our Transformation Journey
A new Phase in our Transformation Journey Get Light Get Broad Get Fit Get Focused BOOSTER FRHI, Movenpick, SBE, … RESET TURBO • Move • Penetrate • Variabilize • Focus & Upskill Asset light Luxury & Lifestyle support costs teams & tools by segment • Upskill • Increase • Improve • Simplify & Industria
Slide 17: Turbo Project: Two Empowered Divisions
Turbo Project : Two Empowered Divisions Accor Corporate & Shared platforms “Economy, Midscale & Premium” “Luxury & Lifestyle” Division Division “Processed” hospitality “Tailored” hospitality Lean & Market-driven Agile & Brand driven Europe Raffles / Sofitel / Ennis- Americas MEAPAC G. China Fairmont
Slide 18: Priorities for 2022
Priorities for 2022 1 Sustainable rebound for H2 with a FY22 EBITDA expected above €550m 2 Net unit growth acceleration to follow activity notably in Asia 3 Pursued efforts to attract talents in our industry 4 Implementation of Turbo organization as of October 1st
Slide 19: Appendices
Appendices Tribe Le Touquet, France
Slide 20: Management & Franchise EBITDA
Management & Franchise EBITDA H1 H1 L/L L/L In € millions 2021 2022 vs. H1 21 vs. H1 19 South Europe 24 87 +254% (12)% North Europe 4 71 +1,454% (23)% ASPAC 21 30 +38% (53)% IMEAT 11 57 +421% +20% Americas (6) 52 N/A (18)% Total 55 297 +426% (19)% Movenpick Resort Al Marjan Island, UAE
Slide 21: EBITDA rebound driven by M&F
EBITDA rebound driven by M&F Hotel M&F Services to Owners Services Reimbursed Other In € millions SMDL(1) STO (2) (1) costs services (2) (1)+(2) (a) (b) (c) (a)+(b)+(c) Revenue 434 326 497 18 842 1,276 H1 2022 EBITDA 297 (64) 0 (25) (89) 208 Revenue 163 161 201 21 383 545 H1 2021 EBITDA 55 (120) 0 (
Slide 22: H1 2022 Revenue – From Like-for-Like to Reported
H1 2022 Revenue – From Like-for-Like to Reported Like-for-Like HotelServices: +119% L/L vs. H1 21 (1) +97% €801m Hotel Assets & Other: +57% L/L vs. H1 21 (1) Perimeter Mainly Ennismore and Pullman Montparnasse +4% €31m Positive currency effect Currency +8% €69m • USD: €40m • BRL: €11m • CAD: €10m •
Slide 23: Q2 22 Group Revenue
Q2 22 Group Revenue Q2 Q2 Reported L/L L/L In € millions 2021 2022 vs. Q2 21 vs. Q2 21 vs. Q2 19 HotelServices 311 770 +147% +130% +1% Hotel Assets & Other 152 262 +72% +62% +4% Holding & Intercos (1) (8) N/A N/A N/A Total 462 1,024 +122% +107% +2% greet Bordeaux Floirac Arena, France
Slide 24: Q2 22 Management & Franchise Revenue
Q2 22 Management & Franchise Revenue Q2 Q2 L/L L/L In € millions 2021 2022 vs. Q2 21 vs. Q2 19 South Europe 24 76 +210% +3% North Europe 14 74 +399% +0% ASPAC 23 34 +37% (24)% IMEAT 13 43 +222% +33% Americas 15 48 +179% (2)% Total 90 276 +191% +1% SO/ Paris, France
Slide 25: Q2 22 Revenue – From Like-for-Like to Reported
Q2 22 Revenue – From Like-for-Like to Reported Like-for-Like HotelServices: 130% L/L vs. Q2 21 (1) 107% €493m Hotel Assets & Other: 62% L/L vs. Q2 21 (1) Perimeter Mainly Ennismore and Pullman Montparnasse 4% €18m Slight positive currency effect Currency 11% €51m • USD: €26m • AUD: €8m • BRL: €8m •
Slide 26: RevPAR
\3\ RevPAR
Slide 27: RevPAR – Systemwide
RevPAR – Systemwide Q2 2022 vs. Q2 2019 H1 2022 vs. H1 2019 OR ARR RevPAR OR ARR RevPAR Lux. & Upscale 55.3 (11.3) 184.2 25.1 101.9 4.6 49.4 (16.0) 174.4 22.1 86.1 (6.9) Midscale 63.7 (7.5) 93.9 8.2 59.9 (3.0) 55.5 (13.0) 88.0 4.0 48.8 (15.5) Economy 65.7 (6.0) 62.3 7.4 41.0 (1.5) 57.5 (10.7) 57.5 3
Slide 28: RevPAR – Geographical Breakdown (1/2)
RevPAR – Geographical Breakdown (1/2) Q2 2022 vs. Q2 2019 H1 2022 vs. H1 2019 OR ARR RevPAR OR ARR RevPAR Lux. & Upscale 67.6 (5.2) 257.2 17.0 173.8 9.2 53.2 (10.5) 235.6 16.6 125.4 (1.0) Midscale 69.9 (5.3) 119.5 8.5 83.6 0.9 57.8 (9.9) 112.2 6.1 64.8 (9.3) Economy 71.3 (4.2) 72.0 7.9 51.3 1.9 60.9
Slide 29: RevPAR – Geographical Breakdown (2/2)
RevPAR – Geographical Breakdown (2/2) Q2 2022 vs. Q2 2019 H1 2022 vs. H1 2019 OR ARR RevPAR OR ARR RevPAR Lux. & Upscale 48.1 (15.1) 114.8 0.3 55.3 (22.7) 43.8 (20.4) 112.4 (5.1) 49.2 (34.3) Midscale 58.7 (11.7) 77.5 5.9 45.5 (11.5) 52.7 (18.1) 74.5 (0.7) 39.3 (25.7) Economy 59.7 (15.4) 40.7 0.5 24.
Slide 30: RevPAR – France
RevPAR – France Q2 2022 vs. Q2 2019 H1 2022 vs. H1 2019 OR ARR RevPAR OR ARR RevPAR Lux. & Upscale 67.2 (3.9) 257.1 17.8 172.7 11.8 53.7 (8.5) 236.9 15.8 127.1 1.5 Midscale 70.0 (4.6) 122.7 7.9 85.8 1.3 58.2 (8.8) 115.6 5.0 67.3 (8.7) Economy 70.7 (3.7) 72.1 7.3 50.9 2.0 60.8 (7.1) 67.7 4.3 41.1 (6.
Slide 31: Portfolio
\4\ Portfolio
Slide 32: Portfolio as of June 30th, 2022 (1/2)
Portfolio as of June 30th, 2022 (1/2) OWNED & LEASED MANAGED FRANCHISED TOTAL # hotels # rooms # hotels # rooms # hotels # rooms # hotels # rooms Luxury & Upscale 2 1,339 39 7,403 37 3,016 78 11,758 Midscale 1 51 167 25,045 366 35,285 534 60,381 Economy 0 0 251 31,567 1,040 76,771 1,291 108,338 SOUT
Slide 33: Portfolio as of June 30th, 2022 (2/2)
Portfolio as of June 30th, 2022 (2/2) OWNED & LEASED MANAGED FRANCHISED TOTAL # hotels # rooms # hotels # rooms # hotels # rooms # hotels # rooms Luxury & Upscale 2 525 182 48,359 28 6,860 212 55,744 Midscale 5 796 82 15,605 23 4,391 110 20,792 Economy 10 1,681 74 13,669 15 2,309 99 17,659 IMEAT 17
Slide 34: Exchange rates
\5\ Exchange rates
Slide 35: H1 2022 Exchange Rates
H1 2022 Exchange Rates H1 2021 H1 2022 H1 2022 1€ = X foreign currency Average Rate Average Rate vs. H1 2021 American Dollar (USD) 1.21 1.10 (9)% Australian Dollar (AUD) 1.56 1.52 (3)% Brazilian Real (BRL) 6.51 5.58 (14)% Turkish Lira (TRY) 9.47 16.16 +71% Canadian Dollar (CAD) 1.51 1.39 (8)% Britis
Slide 36: Q2 22 Exchange Rates
Q2 22 Exchange Rates Q2 2021 Q2 2022 Q2 2022 1€ = X foreign currency Average Rate Average Rate vs. Q2 2021 American Dollar (USD) 1.21 1.11 (8)% Australian Dollar (AUD) 1.56 1.53 (2)% Brazilian Real (BRL) 6.56 5.66 (14)% Turkish Lira (TRY) 9.28 15.89 +71% Canadian Dollar (CAD) 1.51 1.40 (7)% British
Slide 37: Glossary
\8\ Glossary
Slide 38: Glossary
Glossary Region organization • South Europe (including France) • North Europe (including UK and Germany) • ASPAC: Asia Pacific Region including Greater China & Australia • IMEAT: India, Middle-East, Africa & Turkey • Americas: North, Central and South America & Caribbean Like-for-like (L/L) definiti
Slide 39: Accor brands
ACCOR RAFFLES \ ORIENT EXPRESS \ BANYAN TREE \ SOFITEL LEGEND \ FAIRMONT \ EMBLEMS \ SOFITEL \ RIXOS ONEFINESTAY \ MANTIS \ MGALLERY \ ART SERIES \ PULLMAN \ SWISSOTEL \ ANGSANA \ MOVENPICK GRAND MERCURE \ PEPPERS \ THE SEBEL \ MANTRA \ NOVOTEL \ MERCURE \ ADAGIO \ BREAKFREE \ IBIS IBIS STYLES \ GRE