Accor Sa · EURONEXT:AC
Accor Sa — Q1 2020 Earnings Presentation
32 slides from Accor Sa's earnings presentation, Apr 22, 2020
Slide 1: Q1 2020 Revenue
Q1 2020 Revenue April 224, 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: Unprecedented health crisis leading to 90% of Accor hotels closed
Unprecedented health crisis leading to 90% of Accor hotels closed or closed for booking Source: Johns Hopkins University & Medicine
Slide 5: Unprecedented financial crisis driving hefty governments actions
Unprecedented financial crisis driving hefty governments actions Economic outlook & government Specific supports to responses travel & leisure industry Direct supports: • Tax deferrals FY20 GDP growth estimates(1) revised downward: • Social charges payment extensions or cancellation • World GDP grow
Slide 6: Accor Asset Light profile fit to weather the storm
Accor Asset Light profile fit to weather the storm Solid Balance Sheet Cash Preservation • EBITDA protection through: • G&A: €60m minimum reduction • Proactive Asset & Liability Management in 2019 • Sales, Marketing, Distribution & Loyalty: offering today a smooth debt profile Significant cost reduc
Slide 7: Q1 2020 Revenue
Q1 2020 Revenue Jean-Jacques Morin Deputy CEO
Slide 8: Q1 2020 Takeaways
Q1 2020 Takeaways Business Update Financial Performance -25.4% L/L system RevPAR with -62.6% in March €768m Revenue down (17.0)% reported +5.2% LTM net Organic down (15.8)% L/L System Growth 8.0k rooms added in Q1 €150m M&F Revenue down (34.9)% L/L Pipeline stable at 208k rooms 28% of the portfolio
Slide 9: 8k rooms added in the portfolio
8k rooms added in the portfolio In rooms, as of March 2020 346k Network Hotels 5,085 235k Rooms 747k 101k Pipeline 65k 62k 48k 43k 39k Hotels 1,202 13k 3k Rooms 208k Europe Asia-Pacific Middle East South America North America, & Africa Central America & the Caribbean
Slide 10: (25.4)% RevPAR decline in Q1 20
Occupancy Rate (25.4)% RevPAR decline in Q1 20 Average Room Rate RevPAR L/L Europe Asia Pacific 7.9% 5.9% 7.1% 5.1% 5.3% 4.8% 4.0% 4.6% 3.1% 3.3% Asia Pacific 0.3% 1.2% 1.0% -0.6% -1.1% -1.9% -23.2% -33.7% Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 1
Slide 11: (15.8)% L/L decrease in Q1 Group revenue
(15.8)% L/L decrease in Q1 20 Group revenue Q1 Q1 Reported L/L In € millions 2019 (1) 2020 change change HotelServices 645 540 (16.3)% (17.5)% Hotel Assets 259 206 (20.4)% (13.0)% New Businesses 37 32 (13.3)% (13.8)% Holding & Intercos (17) (11) N/A N/A Total 925 768 (17.0)% (15.8)% Fairmont El San
Slide 12: (34.9)% L/L decrease in Management & Franchise revenue
(34.9)% L/L decrease in Management & Franchise revenue Q1 Q1 L/L In € millions 2019 (1) 2020 change Europe 102 72 (31.2)% ASPAC 56 30 (46.7)% MEA 24 19 (34.7)% NCAC 31 20 (36.3)% South America 11 9 (7.4)% Total 225 150 21c Chicago – USA (34.9)% (1) Restated financial information for IFRS 5
Slide 13: Covid-19 Impact Estimate
Covid-19 Impact Estimate Estimated €(170)m EBITDA impact YoY in Q1 due to Covid-19 Cost savings plan launched end-March
Slide 14: Closing remarks
Closing remarks Sébastien Bazin Chairman & CEO
Slide 15: ALL Heartist Fund
ALL Heartist Fund Acting for local Background Accor Contribution communities France: Coronavirus Emergency Furloughing for 2/3 of employees Desk Accor (CEDA) offers hospitality between March 22nd and April 1st solutions for medical staff & homeless Board decided to €70m special cash reserve to UK: 6
Slide 16: Accor guests' profile gears up for recovery
Accor guests’ profile gears up for recovery UK Germany Canada 66% Domestic 53% Domestic 70% Domestic France USA 64% Domestic China 97% Domestic 82% Domestic UAE 20% Domestic Indonesia 71% Domestic Brazil 75% Domestic Australia 83% Domestic Based on FY19 figures
Slide 17: Conclusion
Conclusion Caring for & reassuring our stakeholders Employees: Caring for our most precious assets Guests: Reaching out to all from the heart Owners: Closer than ever, weathering the storm together Partners: Strong cooperation and tailored solutions Shareholders: Taking all mitigation measures to pr
Slide 18: Appendices
Appendices Novotel Melbourne South Wharf - Australia
Slide 19: Q1 2020 Revenue – From Like-for-Like to Reported
Q1 2020 Revenue – From Like-for-Like to Reported Like-for-Like (15.8)% €(146)m HotelServices: (17.5)% L/L (1) New businesses: (13.8)% L/L Hotel Assets: (13.0)% L/L Perimeter (0.8)% €(7)m M&A Slight positive currency effect Currency (0.4)% €(4)m • USD: €6m • CAD: €2m • BRL: €(5)m • AUD: €(8)m Reporte
Slide 20: RevPAR
Sofitel Mexico City Reforma – Mexico 1 RevPAR
Slide 21: RevPAR – Systemwide
RevPAR – Systemwide Q1 2020 OR ARR RevPAR Lux. & Upscale 45.0 -18.8 151 +2.9 68 -27.3 Midscale 48.7 -15.5 85 -0.6 42 -24.4 Economy 48.4 -15.1 55 -0.5 26 -24.0 SYSTEMWIDE 47.6 -16.1 88 -0.3 42 -25.4
Slide 22: RevPAR – Geographical breakdown (1/2)
RevPAR – Geographical breakdown (1/2) Q1 2020 OR ARR RevPAR Lux. & Upscale 44.5 -14.1 151 +1.9 67 -22.6 Midscale 48.0 -14.5 91 -0.2 44 -23.3 Economy 49.0 -14.4 61 -0.7 30 -23.1 EUROPE 48.2 -14.4 80 -0.5 39 -23.2 Lux. & Upscale 38.9 -25.8 124 +3.0 48 -38.1 Midscale 47.9 -19.1 81 -1.4 39 -29.0 Economy
Slide 23: RevPAR – Geographical breakdown (2/2)
RevPAR – Geographical breakdown (2/2) Q1 2020 OR ARR RevPAR Lux. & Upscale 53.5 -13.6 134 -1.7 71 -21.6 Midscale 58.4 -10.5 73 -4.6 43 -18.7 Economy 53.3 -12.0 58 -5.5 31 -22.0 MEA 54.1 -12.7 107 -3.0 58 -21.4 Lux . & Upscale 50.7 -15.3 238 +0.6 120 -22.5 Midscale 62.1 -14.4 133 +0.4 83 -19.5 Econom
Slide 24: RevPAR – France
RevPAR – France Q1 2020 OR ARR RevPAR Lux. & Upscale 45.4 -14.6 189 +0.8 86 -23.3 Midscale 45.7 -13.2 104 -0.6 47 -22.7 Economy 48.1 -13.2 61 -0.1 30 -21.8 FRANCE 47.2 -13.3 79 -0.6 37 -22.4
Slide 25: Portfolio
Banyan Tree Phuket - Thailand 2 Portfolio
Slide 26: Portfolio as of March 31st, 2020 (1/2)
Portfolio as of March 31st, 2020 (1/2) OWNED & LEASED MANAGED FRANCHISED TOTAL # hotels # rooms # hotels # rooms # hotels # rooms # hotels # rooms Luxury & Upscale 5 2,060 136 25,757 62 11,309 203 39,126 Midscale 28 3,401 353 59,009 598 64,493 979 126,903 Economy 21 3,270 598 78,327 1,244 98,575 1,8
Slide 27: Portfolio as of March 31st, 2020 (2/2)
Portfolio as of March 31st, 2020 (2/2) OWNED & LEASED MANAGED FRANCHISED TOTAL # hotels # rooms # hotels # rooms # hotels # rooms # hotels # rooms Luxury & Upscale 0 0 75 28,312 9 3,105 84 31,417 Midscale 0 0 7 2,711 7 1,400 14 4,111 Economy 0 0 20 2,649 4 503 24 3,152 NCAC 0 0 102 33,672 20 5,008 1
Slide 28: Exchange rates
Sofitel Beijing Central – Beijing, China 3 Exchange rates
Slide 29: Q1 2020 Exchange Rates
Q1 2020 Exchange Rates Q1 2019 Q1 2020 Q1 2019 1€ = X foreign currency Average Rate Average Rate vs. Q1 2020 Australian Dollar (AUD) 1.59 1.67 (4.2)% Brazilian Real (BRL) 4.28 4.84 (11.6)% Canadian Dollar (CAD) 1.51 1.47 +2.5% Egyptian Pound (EGP) 20.01 17.39 +15.0% British Sterling (GBP) 0.87 0.86
Slide 30: Glossary
Pullman Bangkok Kong Power - Thailand 4 Glossary
Slide 31: 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 32: 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