Accor Sa · EURONEXT:AC
Accor Sa — Q4 2008 Earnings Presentation
34 slides from Accor Sa's earnings presentation, Jan 15, 2009
Slide 1: Conference Call Q4 2008 Revenue
Conference Call Q4 2008 Revenue January 15, 2009 1
Slide 2: FY 2008 Revenue: €7,739m
FY 2008 Revenue: €7,739m +2.8% Like-for-like (L/L) Good overall L/L performance Prepaid Services: +€114m, +12.9% L/L Hotels: +€122m, +2.1% L/L Expansion strategy +5.2% Expansion Prepaid Services: +3.7% Hotels: +4.6% Disposals -10.6% Disposals Red Roof Inn: €(183)m, -2.2% Go Voyages
Slide 3: Q4 2008 Revenue: €1,952m
Q4 2008 Revenue: €1,952m -1.1% Like-for-like (L/L) Strong performance in Prepaid Services Services: +€35m, +13.6% L/L Hotels: €(40)m, -2.8% L/L +6.2% Expansion Expansion strategy Prepaid Services: +3.3% Hotels: +5.9% -5.5% Disposals Disposals Brazilian Foodservices: €(70)m, -3.5% R
Slide 4: Q4 2008 Revenue by business
Q4 2008 Revenue by business Prepaid Services Revenue (L/L) Sustained strong growth in Prepaid Services revenue: +13.6% L/L in Q4 2008 +14.1% +13.6% +12.9% +11.8% H1 2008 Q3 2008 Q4 2008 FY 2008 Hotels Revenue (L/L) Negative growth in Hotels revenue: -2.8% L/L in Q4 2008, -2.4% excl. Rugby World
Slide 5: Prepaid Services 2008 Revenue
Prepaid Services 2008 Revenue 5
Slide 6: Prepaid Services FY 2008 revenue: €978m
Prepaid Services FY 2008 revenue: €978m, strong reported growth: +10.5% +12.9% Like-for-like Strong organic growth: +€114m, +12.9% H1 2008: +11.8% L/L H2 2008: +13.8% L/L External growth: +€33m, +3.7% of which +3.7% Expansion Prepay Technologies: +1.1% Quasar: +1.2% Motivano: +0.3% O
Slide 7: Prepaid Services Q4 2008 revenue: €285m
Prepaid Services Q4 2008 revenue: €285m +13.6% Like-for-like Strong organic growth: +€35.4m, +13.6% External growth: +€8.7m, +3.3% of which +3.3% Expansion Prepay Technologies: +0.9% Quasar: +1.2% Motivano: +0.3% Other: +0.9% -3.3% Disposals Disposals: €(8.6)m, -3.3% Loyalty Cards bu
Slide 8: Prepaid Services 2008 Revenue Breakdown
Prepaid Services 2008 Revenue Breakdown Reported 2007 2008 growth Issue Volume €11,436m € 12,696m +11.0% Revenue with Issue Volume €720m €803m +11.5% Revenue rate, of which: 6.3% 6.3% Operating revenue 5.5% 5.3% Interest on float 0.8% 1.0% 0.8 1.0 1.0 Total Revenue w/o Issue Volume €165m €175m +6.0%
Slide 9: Prepaid Services Europe
Prepaid Services Europe L/L Revenue Growth H1 08 Q3 08 Q4 08 FY 08 France +15.2% +16.9% +9.6% +13.7% UK +13.1% +8.9% +6.9% +10.4% Belgium -15.2% -23.3% -23.9% -19.6% Total Europe +10.4% +11.8% +7.7% +9.9% France Strong Q4 2008 L/L revenue growth: +9.6%, and +16.8% restated from one-off revenue i
Slide 10: Prepaid Services Latin America
Prepaid Services Latin America L/L Revenue Growth H1 08 Q3 08 Q4 08 FY 08 Brazil +8.6% +17.5% +27.7% +16.1% Latin America (excl. Brazil) +19.0% +17.6% +15.9% +17.8% Total Latin America +13.4% +17.6% +22.2% +16.9% Brazil: Strong business activity: +27.7% L/L in Q4 2008, confirming the topline rec
Slide 11: Hotels 2008 Revenue
ACCOR Hospitality Hotels 2008 Revenue
Slide 12: Hotels FY 2008 Revenue: €5,767m
Hotels FY 2008 Revenue: €5,767m +2.1% Like-for-like L/L growth: +€122m, +2.1% Up & Midscale: +2.6% Economy excl. M6: +3.2% Economy US: -2.1% Expansion: +€267m, +4.6% +4.6% Expansion Up & Midscale: +6.0%, €198m of which €93m of Orbis integration Economy excl. M6: +3.6%, €61m of which €1
Slide 13: Hotels Q4 2008 Revenue: €1,438m
Hotels Q4 2008 Revenue: €1,438m -2.8% Like-for-like L/L growth: €(40)m, -2.8% Up & Midscale: -3.3% Economy excl. M6: -0.5% Economy US: -6.5% +5.9% Expansion Expansion: +€85m, +5.9% Up & Midscale: +7.4%, €66m Economy excl. M6: +4.4%, €18m Openings: 8,500 new rooms -1.7% Disposals Di
Slide 14: Up & Midscale – Q4 2008 revenue
Up & Midscale – Q4 2008 revenue Impact of slowdown: different according to regions Countries / Regions Q4 2008 Q4 revenue revenue growth (L/L) 15% Latin America, Asia, €132m Positive Middle-East, Africa France, Germany €475m -2% to -4% 54% US, UK, Benelux, €271m Below -8% 31% Spain / Italy / Portuga
Slide 15: Up & Midscale - Q4 2008 Revenue: €878m
Up & Midscale - Q4 2008 Revenue: €878m L/L Revenue Growth H1 08 Q3 08 Q4 08 FY 08 France +6.8% -0.4% -3.6% +2.2% Germany +4.3% +2.2% -2.6% +2.0% UK +5.3% +4.1% -8.8% +1.2% Total Worldwide +6.2% +1.8% -3.3% +2.6% France: L/L revenue growth, restated from Rugby World Cup: -2.0% in Q4 2008, +3.0% for
Slide 16: Economy – Q4 2008 Revenue: €413m
Economy – Q4 2008 Revenue: €413m L/L Revenue Growth H1 08 Q3 08 Q4 08 FY 08 France +5.4% +1.8% +1.2% +3.4% Germany +4.1% -0.2% -0.6% +1.8% UK +8.5% +5.1% -1.1% +5.1% Total Economy excl. US +6.1% +1.7% -0.5% +3.2% Confirmed resilience of Economy segment (excl. M6) with positive Q4 2008 L/L revenue
Slide 17: Economy US Hotels – Q4 2008 Revenue: €146m
Economy US Hotels – Q4 2008 Revenue: €146m L/L Revenue Growth H1 08 Q3 08 Q4 08 FY 08 Total -0.4% -2.7% -6.5% -2.1% Good performance of Motel 6 compared to competition: RevPAR growth M6/S6 Competitive set(1) October -5.7% -5.8% November -7.8% -9.9% (1) US Economy segment, excluding Motel 6 / Studi
Slide 18: Other businesses
Other businesses 18
Slide 19: Other businesses – Q4 2008 Revenue
Other businesses – Q4 2008 Revenue Q4 08 Q4 08 FY 08 Reported L/L L/L Growth (%) Growth (%) Growth (%) Casinos -7.0% -10.3% -4.3% (1) Restaurants -73.7% -4.7% +1.0% Onboard Train Services +11.7% +3.0% +3.3% (2) Holding & Other +18.0% -15.7% -3.6% TOTAL -24.4% -5.9% -0.6% (1) Disposal of Brazilian fo
Slide 20: Conclusion
Conclusion 20
Slide 21: Confirmation of 2008 PBT Guidance
Confirmation of 2008 PBT Guidance The guidance given by Accor on October 16th, 2008 anticipated the further deterioration in Q4 2008 in Hotels operating performance and a strong resilience of business activity in the Prepaid Services Accor confirms its guidance 2008E Operating Profit Before Tax
Slide 22: Appendices
ACCOR Appendices
Slide 23: Hotels: FY 2008 RevPAR by segment
Hotels: FY 2008 RevPAR by segment Occupancy rate Average room rate RevPAR HOTELS: Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries FY 2008 (reported) & managed RevPAR by segment (chg (chg (chg (chg (chg (chg in %, (chg in %, (in %) in in pts, in %, in %) in %) L/L) reported) pts) L/L
Slide 24: Up & Midscale Hotels: FY 2008 RevPAR by Country
Up & Midscale Hotels: FY 2008 RevPAR by Country UPSCALE & MIDSCALE Average room HOTELS: Occupancy Rate RevPAR rate FY 2008 RevPAR by Country Number of Subsidiaries Subsidiaries Subsidiaries Subsidiaries rooms Subsidiaries (reported) (reported) (reported) & managed (chg in (chg in (chg in (L/L in %)
Slide 25: Economy Hotels: FY 2008 RevPAR by Country
Economy Hotels: FY 2008 RevPAR by Country ECONOMY HOTELS: Average room Occupancy Rate RevPAR FY 2008 rate RevPAR by Country Number of rooms Subsidiaries Subsidiaries Subsidiaries Subsidiaries (reported) (reported) (reported) Subsidiaries & managed (chg in (chg in (in local currency) (in %) (chg in %
Slide 26: Hotels: Q4 2008 RevPAR by segment
Hotels: Q4 2008 RevPAR by segment Occupancy rate Average Room Rate RevPAR HOTELS : Q4 2008 Subsidiaries Subsidiaries RevPAR by segment Subsidiaries Subsidiaries Subsidiaries (reported) & managed (chg in (chg in (chg (chg in (chg (chg in %, (chg in %, (in %) pts) pts, L/L) in %) %, L/L) in %) L/L) re
Slide 27: Up & Midscale Hotels: Q4 2008 RevPAR by Country
Up & Midscale Hotels: Q4 2008 RevPAR by Country UPSCALE & MIDSCALE Average room HOTELS: Occupancy Rate RevPAR rate Q4 2008 RevPAR by Country Number of Subsidiaries Subsidiaries Subsidiaries Subsidiaries rooms Subsidiaries (reported) (reported) (reported) & managed (chg in (chg in (chg in (L/L in %)
Slide 28: Economy Hotels: Q4 2008 RevPAR by Country
Economy Hotels: Q4 2008 RevPAR by Country ECONOMY HOTELS: Q4 2008 Average room Occupancy Rate RevPAR RevPAR by Country rate Number of Subsidiaries Subsidiaries Subsidiaries Subsidiaries rooms Subsidiaries (reported) (reported) (reported) & managed (chg in (chg in (chg in (L/L) (reported) (in %) pts)
Slide 29: Reconciliation: FY 2008 L/L RevPAR vs Revenue
Reconciliation: FY 2008 L/L RevPAR vs Revenue RevPAR RevPAR Total Sub. and Like-for-like Sub. Only Like-for-like Managed room revenues Like-for-like revenues Reported Up & Midscale Europe -2.3% +1.3% +1.6% +1.0% Economy Europe +1.1% +2.4% +2.6% +2.2% Economy U.S ($) -3.0%(1) -3.6%(1) -3.3%(1)
Slide 30: Reconciliation: Q4 2008 L/L RevPAR vs Revenue
Reconciliation: Q4 2008 L/L RevPAR vs Revenue RevPAR RevPAR Total Sub. and Like-for-like Sub. Only Like-for-like Managed room revenues Like-for-like revenues Reported Up & Midscale Europe -11.1% -5.8% -5.4% -5.1% Economy Europe -3.6% -1.7% -1.4% -1.7% Economy U.S ($) -6.2%(1) -7.4%(1) -7.3%(1)
Slide 31: FY Management & Franchise Fees by Segment
FY Management & Franchise Fees by Segment FY 2007 FY 2008 Change in %, (reported) (reported) at constant exchange rates Revenue Managed Franchised Total Managed Franchised Total Managed Franchised Total (in €m) Up & Midscale 130,262 29,435 159,697 138,110 28,991 167,101 +10.7% +6.4% +9.9% Economy 12
Slide 32: Q4 2008 Management & Franchise Fees by Segment
Q4 2008 Management & Franchise Fees by Segment Q4 2007 Q4 2008 Change in %, (reported) (reported) at constant exchange rates Revenue Managed Franchised Total Managed Franchised Total Managed Franchised Total (in €m) Up & Midscale 37,945 7,749 45,694 38,114 6,839 44,953 +1.3% +3.8% +1.7% Economy 3,91
Slide 33: Main disposals, 2007-2008: Impact on Revenue
Main disposals, 2007-2008: Impact on Revenue Revenue (€m) 2007 Classification Q1 07 Q2 07 H1 07 Q3 07 Q4 07 H2 07 FY 07 Red Roof Inn (1) Eco Hotels US 60 72 132 54 (3) 51 183 GO Voyages (2) Holding Cpies & Other 27 29 56 - - - 56 Scapa Italia (3) Holding Cpies & Other 14 17 31 18 - 18 49 Italian foo
Slide 34: FY 2008 Exchange Rates
FY 2008 Exchange Rates 2007 2008 2008 vs 2007 1€ = X foreign currency average rate average rate Change (in %) US Dollar (USD) 1.37 1.47 -7.3% Sterling (GBP) 0.68 0.80 -16.3% Brazilian real (BRL) 2.66 2.67 -0.4% Venezuelan Bolivar (VEF) 2.96 3.16 -6.7% Argentinean Peso (ARS) 4.27 4.64 -8.6% 34