Slide 1: FY 2019 Results
FY 2019 RESULTS 1
Slide 2: Disclaimer
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
SÉBASTIEN BAZIN Chairman & CEO OPENINGS REMARKS 3
Slide 4: We delivered a radical transformation
WE DELIVERED A RADICAL TRANSFORMATION 96% 58% 58% 41% 22% 26% (1) 2014 2019 2014 2019 2014 2019 MORE ASSET-LIGHT MORE UPSCALE MORE GLOBAL EXPOSURE (ROOMS %) & LUXE (FEE %) OUTSIDE OF EUROPE (BUSINESS VOLUME %) (1) As of end 2019, adjusted for Orbis and Mövenpick lease portfolio disposals
Slide 5: Timely execution of the asset-light roadmap in 2019
TIMELY EXECUTION OF THE ASSET-LIGHT ROADMAP IN 2019 SALE OF SALE OF ASSETS DISPOSAL SALE OF 5% STAKE 5% STAKE €730M LEASE PORTFOLIO €200M $450M NET PROCEEDS +350% +22% 13% IRR €430M vs. original vs. Tender offer vs. May 2018 Net debt reduction investment in 2016 in January 2019
Slide 6: Acceleration through luxury / lifestyle
ACCELERATION THROUGH LUXURY / LIFESTYLE INCREASING LUXURY PIPELINE GROWING LIFESTYLE SEGMENT HIGHER FEE GENERATION FROM OPENINGS In rooms NETWORK 2019 50 HOTELS / 10K ROOMS 35% €1.2K PER ROOM UPSCALE AT CRUISE SPEED LUXURY 36% PIPELINE MIDSCALE 80 HOTELS / 14K ROOMS 2020 29% €1.6K PER ROOM ECONOMY A
Slide 7: A comprehensive brand powerhouse
A COMPREHENSIVE BRAND POWERHOUSE CLASSIC COLLECTIONS LIFESTYLE RESORTS REGIONAL LUXURY PREMIUM MIDSCALE ECONOMY
Slide 8: Top 10 countries account for 60% of management & franchise fees
TOP 10 COUNTRIES ACCOUNTS FOR 60% OF MANAGEMENT & FRANCHISE FEES Upscale/Luxury is 42% of the Top 10 countries AS OF END-2019 POST PIPELINE % M&F fees 17% o/w Upscale/Luxury 10% 6% 6% 5% 5% 5% 4% 4% 25% 96% 35% 76% 23% 3% 3% 60% 76% 12% 94% FRANCE GERMANY USA AUSTRALIA UAE UK KSA CHINA CANADA BRAZIL
Slide 9: 5,000 hotels in network by end-2019
North America, Central America NETWORK & the Caribbean Europe Asia-Pacific HOTELS 5,036 South 38K America 344K Middle East & Africa 232K ROOMS 740K 5K 62K 46K 64K 100K PIPELINE 14K 45K HOTELS 1,206 ROOMS 208K 5,000 HOTELS IN NETWORK BY END-2019 IN ROOMS, AS OF DECEMBER 2019
Slide 10: A differentiated value proposition
A DIFFERENTIATED VALUE PROPOSITION SOLID BUSINESS MODEL COMPREHENSIVE PROPOSITION MULTIPLE VALUE LEVERS ⌐ Global leader group in hotel management ⌐ Powerful distribution platform ⌐ One-stop shop for owners & guests including Sabre initiative ⌐ #1 in Europe, MEA, South America & ASPAC ⌐ Augmented Hos
Slide 11: FY 2019 Results
JEAN-JACQUES MORIN Deputy CEO F Y 2019 RESULTS 11
Slide 12: FY 2019 key achievements
FY 2019 KEY ACHIEVEMENTS BUSINESS FINANCIAL PERFORMANCE RETURN TO SHAREHOLDERS MOMENTUM Sofitel Mexico City Fairmont Genève Pullman Maldives ⌐ +1.7% L/L system RevPAR ⌐ €4,049m Revenue ⌐ €434m Recurring Free Cash Flow up +16.0% reported, up +3.8% L/L ⌐ +5.1% Net Organic System Growth ⌐ €825m EBITDA
Slide 13: A record-breaking year for development
A RECORD-BREAKING YEAR FOR DEVELOPMENT RECORD RECORD RECORD RECORD Over Near 330 hotels 510 hotels & Over 1,200 hotels & 5,000 hotels & & 45,000 rooms 76,000 rooms signed 208,000 rooms 740,000 rooms opened in pipeline Net Organic Growth 1 hotel signed Pipeline over the 1 opening per day every 16 hou
Slide 14: +1.7% RevPAR growth in FY 2019
+1.7% REVPAR GROWTH IN FY 2019 EUROPE ASIA PACIFIC 7.9% 7.1% 5.9% 5.3% 4.8% 4.0% 5.1% 4.6% 3.1% 3.3% 1.2% 0.3% -1.9% -1.1% 1.0% -0.6% Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 REST OF THE WORLD GROUP 5.9% 6.1% 6.5% 5.8% 5.3% 5.0% 5.0% 4.0% 4.8% 3
Slide 15: Revenue growth of +3.8% L/L
REVENUE GROWTH OF +3.8% L/L REPORTED L/L IN € MILLIONS 2018 (1) 2019 CHANGE CHANGE HOTEL SERVICES 2,644 2,894 + 9.5% + 4.6% HOTEL ASSETS 751 1,077 + 43.4% + 2.9% NEW BUSINESSES 149 159 + 7.2% + 3.8% HOLDING & INTERCOS (54) (81) N/A N/A GROUP 3,490 4,049 + 16.0% + 3.8% (1) Restated and Proforma finan
Slide 16: +3.8% L/L increase in management & franchise revenue
+3.8% L/L INCREASE IN MANAGEMENT & FRANCHISE REVENUE L/L IN € MILLIONS 2018 (1) 2019 CHANGE EUROPE 519 525 +4.0% ASPAC 212 214 +2.3% MEA 81 107 +5.3% NCAC 133 132 +1.5% SOUTH AMERICA 44 49 +13.0% GROUP 990 1,026 +3.8% (1) Restated and Proforma financial information
Slide 17: Solid EBITDA growth of +5.9% L/L
SOLID EBITDA GROWTH OF +5.9% L/L REPORTED L/L IN € MILLIONS 2018 (1) 2019 CHANGE CHANGE HOTEL SERVICES 724 741 +2.3% +5.8% (2) HOTEL ASSETS 154 216 +40.1% (7.3%) NEW BUSINESSES (20) (2) +90.4% +88.8% HOLDING & INTERCOS (139) (129) N/A N/A GROUP 719 825 +14.8% +5.9% (1) Restated and Proforma financia
Slide 18: Strong management & franchise EBITDA growth of +8.3%
STRONG MANAGEMENT & FRANCHISE EBITDA GROWTH OF +8.3% L/L IN € MILLIONS 2018 (1) 2019 CHANGE EUROPE 390 416 +6.6% ASPAC 130 152 +8.9% MEA 52 82 +14.5% NCAC 79 92 +7.5% SOUTH AMERICA 17 24 +21.4% GROUP 667 765 +8.3% (1) Restated and Proforma financial information
Slide 19: ASPAC performance impacted by Mantra
ASPAC PERFORMANCE IMPACTED BY MANTRA ACCOR’S REVENUE BY REGIONS(1) DETERIORATED TRADING: US-China trade war, 15% weakened economy, MANTRA oversupply & bushfires < 33% LEASED HOTELS AMPLIFY ASPAC TRADING PERFORMANCE 41% EUROPE 11% NCAC FY19 EBITDA €(40)M BELOW 8% INITIAL BUSINESS PLAN 7% MEA €150M IM
Slide 20: Solid progress on M&A integration
SOLID PROGRESS ON M&A INTEGRATION SYNERGIES PLANNED % VS. COMMENTS COMPLETION (€) INITIAL PLAN TIMELINE ⌐ Connection to distribution completed for B2C Q2 19 65M 115% ⌐ Strong development since closing: ACQUIRED IN JULY 6kr opened or signed (14% of acquired network) 2016 ⌐ Connection to distribution
Slide 21: New businesses delivered
NEW BUSINESSES DELIVERED FY 2019 TARGET FY 2019 ACHIEVEMENTS COMMITMENT DELIVERED Q4 EBITDA break-even < EBITDA IN € MILLIONS OPERATIONAL ACHIEVEMENT Merger of FastBooking & Availpro 2016 2017 2018 +13% L/L revenue with double-digit profitability (excl. OFS and Reported(1) Reported(1) Proforma(2) 20
Slide 22: From EBITDA to net profit
FROM EBITDA TO NET PROFIT IN € MILLIONS 2018 (1) 2019 EBITDA 719 825 DEPRECIATION, AMORTIZATION AND PROVISION EXPENSES (203) (328) EBIT 516 497 SHARE OF NET PROFIT OF ASSOCIATES AND JOINT VENTURES 80 3 NON-RECURRING ITEMS (432) 177 OPERATING PROFIT (163) 678 NET FINANCIAL EXPENSE (73) (75) INCOME TA
Slide 23: Cash conversion above 70%
CASH CONVERSION ABOVE 70% IN € MILLIONS 2018 (1) 2019 2019 RECURRING INVESTMENT BY SEGMENT EBITDA 719 825 COST OF NET DEBT (CASH) (59) (73) 14% INCOME TAX (CASH) HOLDING (121) (122) NEW BUSINESSES REIMBURSEMENT OF LEASE LIABILITIES (84) (137) 7% NON-CASH ITEMS & OTHER 88 104 68% 543 597 HOTEL ASSETS
Slide 24: Net debt driven by asset-light roadmap & IFRS 16
NET DEBT DRIVEN BY ASSET-LIGHT ROADMAP & IFRS 16 €978M €(430)M €(434)M €294M €(188)M €108M €1,333M €(148)M €1,153M NET DEBT Δ LEASE LIABILITY MÖVENPICK RECURRING HYBRID DIVIDEND M&A OTHER NET DEBT DEC. 2018 (IFRS 16) LEASES FCF DEC. 2019 RECLASSIFIED IN HELD FOR SALE
Slide 25: Sound balance sheet further optimized in 2019
SOUND BALANCE SHEET FURTHER OPTIMIZED IN 2019 COST OF DEBT SECURED AND MATURITY EXTENDED WELL-BALANCED DEBT REPAYMENT SCHEDULE 500 4.6 4.5 856 4.2 3.7 years 3.6 3.6 3.5 556 4.3% 514 606 3.1% 500 2.9% 2.9% 127 2.0% 1.9% 1.8% 206 206 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 BEY
Slide 26: 2019 proposed dividend
2019 PROPOSED DIVIDEND RECURRING FREE CASH FLOW €434M ORDINARY DIVIDEND PER SHARE EUR1.05 per share Subject to shareholders’ approval at the AGM on April 30th, 2020 Payment option between 100% cash or 100% shares with a 5% discount
Slide 27: ALL Live Limitless update
ACCOR LIVE LIMITLESS UPDATE LAUNCH OF LOYALTY CONTRIBUTION PARTNERSHIP REVENUE IN DECEMBER 2019 64m members at end-2019 EURm >100 NEW PREMIUM STATUS DIAMOND LIMITLESS 40% 31% 30% ENRICHED BENEFITS 2018 2019 2020 2021 2022 RUN 12 RATE 6 NEW PARTNERSHIPS … … Definition varies 2018 2019 2022 across ind
Slide 28: Sponsorship is delivering above expectations
SPONSORSHIP IS DELIVERING ABOVE EXPECTATIONS Total Awareness Media value January 2020 39% €212m 18% 19% 19% 21% 16% 13% Offline 10% 11% 9% 6% 5% 8% €18m 4% Online FRANCE UK GERMANY USA BRAZIL CHINA AUSTRALIA €118m Social Media €76m
Slide 29: We did what we said last year and will continue in 2020
WE DID WHAT WE SAID LAST YEAR AND WE WILL CONTINUE IN 2020 FY18 RESULTS Feb. 21ST SOLID PERSPECTIVES 2019 Convert 2018 record pipeline into ⌐ Convert 2019 record pipeline into NEW 2020 OPENINGS NEW 2019 OPENINGS ⌐ Complete INTEGRATION OF 2018 ACQUISITIONS Continue INTEGRATION OF 2018 acquisitions ⌐
Slide 30: Closing Remarks
SÉBASTIEN BAZIN Chairman & CEO CLOS ING REMARKS 30
Slide 31: Record FY19 results in a challenging environment
RECORD FY19 RESULTS IN A CHALLENGING ENVIRONMENT MACRO UNCERTAINTIES SCOPE US-CHINA TRADE WAR GLOBAL GDP IMPACT HONG KONG TURMOIL HONG KONG REVPAR DOWN AUSTRALIAN BUSHFIRES AUSTRALIA REVPAR DOWN BREXIT UK REVPAR DOWN YELLOW VESTS PARIS REGION REVPAR DOWN MEA GEOPOLITICS MIDDLE EAST REVPAR DOWN TURMO
Slide 32: COVID-19-related risks
COVID19-RELATED RISKS CHINA LARGEST EMITTING IMPACTS IN CHINA ACCOR EXPOSURE MARKET 150m international tourists REST OF ⌐ #4 inbound market in 2019 THE WORLD 63m foreign visitors 12% GREATER CHINA 3% OF REVENUE ⌐ Most airliners suspended or reduced flights to/from China 88% ASIA ASPAC ⌐ Occupancy do
Slide 33: A blessed industry for the long term
A BLESSED INDUSTRY FOR THE LONG TERM 4% CAGR TO REACH 2BN TRAVELLERS BY 2030 GLOBAL SUPPLY REMAINS FRAGMENTED International arrivals by region INDEPENDENT ROOMS Millions 8.4M 8.3M BRANDED ROOMS 1400 Financial Crisis 1200 1000 SARS 5.7M 800 Iraq war 600 3.3M 2.8M 52% 400 32% 74% 200 18% 18% - 1950 19
Slide 34: Our strongest assets
OUR STRONGEST ASSETS BRAND DISTRIBUTION PEOPLE POWERHOUSE LOYALTY NETWORK BALANCE LEADERSHIP SHEET
Slide 35: Priorities moving forward
PRIORITIES MOVING FORWARD ACCOR VALUES DEVELOPMENT ASSET-LIGHT MODEL Strong CSR Foster owner’s preference Drive customer stickiness Increase shareholder commitments to fuel ambitious organic through: return deploying: development ⌐ People diversity and ⌐ Through comprehensive ⌐ Personalization with
Slide 36: €1.85bn share buyback topping ordinary dividend since 2018
€1.85BN SHARE BUYBACK TOPPING ORDINARY DIVIDEND SINCE 2018 To be pursued beyond 2021 €300M €400M €350M €500M €300M Launched Jan. 2020 ORDINARY €305M DIVIDEND €283M €284M(1) 2018 2019 2020 2021 % of market cap at the beginning 5.3% 7.3% 7.8% N/A of the year (1) Based on proposed cash dividend at €1.0
Slide 37: Q&A
Q&A
Slide 38: Thank you
THANK YOU
Slide 39: Appendices
APPENDICES
Slide 40: Restated and proforma figures for FY 2018
RESTATED AND PROFORMA FIGURES FOR FY 2018 FY18 FY18 FY18 IN € MILLIONS reported IFRS 5 Restated IFRS 16(1) Booster(2) Proforma Revenue 3,610 (328) 3,282 - 207 3,490 EBITDA 712 (87) 626 93 - 719 EBIT 550 (45) 505 11 - 516 Net profit before discontinued operations (8) (33) (41) - - (41) Net profit att
Slide 41: Solid margin for management & franchise
SOLID MARGIN FOR MANAGEMENT & FRANCHISE Management Services IN € MILLIONS & Franchise to Owners HotelServices Revenue 1,026 1,867 2,894 2019 EBITDA 765 (24) 741 Margin 74.5% (1.3)% 25.6% Revenue 990 1,654 2,644 2018(1) EBITDA 667 57 724 Margin 67.4% 3.4% 27.4% (1) Restated and Proforma financial inf
Slide 42: FY19 revenue – from like-for-like to reported
FY19 REVENUE – FROM LIKE-FOR-LIKE TO REPORTED ⌐ HotelServices: +4.6% comp (1) LIKE-FOR-LIKE +3.8% +€131M ⌐ New businesses: +3.8% L/L Hotel Assets: +2.9% L/L M&A INTEGRATION PERIMETER +10.9% +€380M ⌐ Mantra: €190m ⌐ Mövenpick: €146m SLIGHT POSITIVE CURRENCY EFFECT CURRENCY ⌐ USD: €50m +1.4% +€48M ⌐ C
Slide 43: Q4 revenue growth of +2.0% L/L
Q4 REVENUE GROWTH OF +2.0% L/L Q4 Q4 REPORTED L/L IN € MILLIONS 2018 (1) 2019 CHANGE CHANGE HOTEL SERVICES 733 769 + 4.8% + 2.2% HOTEL ASSETS 282 285 + 1.0% + 2.6% NEW BUSINESSES 38 40 + 5.6% + 3.2% HOLDING & INTERCOS (16) (19) N/A N/A TOTAL 1,037 1,075 +3.6% + 2.0% (1) Restated and Proforma financi
Slide 44: Q4 revenue – from like-for-like to reported
Q4 REVENUE – FROM LIKE-FOR-LIKE TO REPORTED ⌐ HotelServices: +2.2% comp (1) LIKE-FOR-LIKE +2.0% +€20M ⌐ New businesses: +3.2% L/L Hotel Assets: +2.6% L/L PERIMETER +0.7% +€7M SLIGHT POSITIVE CURRENCY EFFECT CURRENCY ⌐ USD: €9m +1.0% +€10M ⌐ CAD: €3m ⌐ BRL: €(3)m ⌐ AUD: €(4)m REPORTED +3.6% +€37M (1)
Slide 45: Hotel Services Q4 M&F revenue
HOTEL SERVICES Q4 M&F REVENUE Q4 Q4 L/L IN € MILLIONS 2018 (1) 2019 CHANGE EUROPE 138 134 + 0.2% ASPAC 66 60 + 0.6% MEA 25 31 + 6.9% NCAC 40 31 (5.3)% SOUTH AMERICA 12 12 + 10.7% TOTAL 281 268 +0.6% (1) Restated and Proforma financial information
Slide 46: RevPAR
REV PAR
Slide 47: RevPAR – systemwide
REVPAR – SYSTEMWIDE Q4 2019 H2 2019 FY 2019 OR ARR RevPAR OR ARR RevPAR OR ARR RevPAR Chg Chg Chg Chg Chg Chg Chg Chg Chg % Pts € % € % % Pts € % € % % Pts € % € % L/L L/L L/L L/L L/L L/L L/L L/L L/L LUX. & UPSCALE 67.3 +1.1 151 -1.1 101 +0.6 68.7 +0.8 155 -1.0 106 +0.1 67.6 +0.9 153 -0.2 103 +1.2 M
Slide 48: RevPAR – geographical breakdown (1/2)
REVPAR – GEOGRAPHICAL BREAKDOWN (1/2) Q4 2019 H2 2019 FY 2019 OR ARR RevPAR OR ARR RevPAR OR ARR RevPAR Chg Chg Chg Chg Chg Chg Chg Chg Chg % Pts € % € % % Pts € % € % % Pts € % € % L/L L/L L/L L/L L/L L/L L/L L/L L/L LUX. & UPSCALE 68.9 +0.6 157 -0.2 108 +0.7 73.4 +0.4 167 -0.6 122 -0.1 71.9 +1.1 1
Slide 49: RevPAR – geographical breakdown (2/2)
REVPAR – GEOGRAPHICAL BREAKDOWN (2/2) Q4 2019 H2 2019 FY 2019 OR ARR RevPAR OR ARR RevPAR OR ARR RevPAR Chg Chg Chg Chg Chg Chg Chg Chg Chg % Pts € % € % % Pts € % € % % Pts € % € % L/L L/L L/L L/L L/L L/L L/L L/L L/L LUX. & UPSCALE 67.1 +3.3 147 -4.0 99 +1.5 65.3 +3.1 150 -3.7 98 +1.2 65.2 +3.3 151
Slide 50: RevPAR – France
REVPAR – FRANCE Q4 2019 H2 2019 FY 2019 OR ARR RevPAR OR ARR RevPAR OR ARR RevPAR Chg Chg Chg Chg Chg Chg Chg Chg Chg % Pts € % € % % Pts € % € % % Pts € % € % L/L L/L L/L L/L L/L L/L L/L L/L L/L LUX. & UPSCALE 67.1 -1.2 203 -1.9 136 -3.7 72.7 -1.3 216 -0.6 157 -2.3 70.5 -0.0 211 +1.3 149 +1.3 MIDSC
Slide 51: Portfolio
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Slide 52: Portfolio as of December 31st, 2019 (1/2)
PORTFOLIO AS OF DECEMBER 31ST, 2019 (1/2) OWNED & LEASED MANAGED FRANCHISED TOTAL # HOTELS # ROOMS # HOTELS # ROOMS # HOTELS # ROOMS # HOTELS # ROOMS LUX. & UPSCALE 22 6,021 116 21,372 62 11,308 200 38,701 MIDSCALE 58 10,812 323 51,349 586 62,773 967 124,934 ECONOMY 56 8,659 586 75,437 1,220 96,041
Slide 53: Portfolio as of December 31st, 2019 (2/2)
PORTFOLIO AS OF DECEMBER 31ST, 2019 (2/2) OWNED & LEASED MANAGED FRANCHISED TOTAL # HOTELS # ROOMS # HOTELS # ROOMS # HOTELS # ROOMS # HOTELS # ROOMS LUX. & UPSCALE 0 0 73 27,627 9 3,105 82 30,732 MIDSCALE 0 0 6 2,641 7 1,400 13 4,041 ECONOMY 0 0 21 2,775 3 377 24 3,152 NCAC 0 0 100 33,043 19 4,882
Slide 54: Exchange rates
EXC H ANGE RATES
Slide 55: Q4 2019 exchange rates
Q4 2019 EXCHANGE RATES 1€ = X FOREIGN CURRENCY Q4 2018 Q4 2019 Q4 2018 AVERAGE RATE AVERAGE RATE VS. Q4 2019 ⌐ AUSTRALIAN DOLLAR (AUD) 1.59 1.62 (1.9)% ⌐ BRAZILIAN REAL (BRL) 4.34 4.56 (4.8)% ⌐ CANADIAN DOLLAR (CAD) 1.51 1.46 +3.2% ⌐ EGYPTIAN POUND (EGP) 20.44 17.88 +14.3% ⌐ BRITISH STERLING (GBP) 0
Slide 56: 2019 exchange rates
2019 EXCHANGE RATES 1€ = X FOREIGN CURRENCY 2018 2019 2018 AVERAGE RATE AVERAGE RATE VS. 2019 ⌐ AUSTRALIAN DOLLAR (AUD) 1.58 1.61 (1.9)% ⌐ BRAZILIAN REAL (BRL) 4.31 4.41 (2.4)% ⌐ CANADIAN DOLLAR (CAD) 1.53 1.49 +2.9% ⌐ EGYPTIAN POUND (EGP) 21.05 18.88 +11.5% ⌐ BRITISH STERLING (GBP) 0.88 0.88 +0.8%
Slide 57: Glossary
GLOS SARY
Slide 58: Glossary
GLOSSARY REGION ORGANIZATION ⌐ EUROPE (INCLUDING FRANCE & SWITZERLAND) ⌐ MEA: MIDDLE-EAST AND AFRICA ⌐ ASPAC: ASIA PACIFIC REGION ⌐ NCAC: NORTH & CENTRAL AMERICA & CARIBBEAN ⌐ SOUTH AMERICA
Slide 59: Slide 59