Accor Sa · EURONEXT:AC
Accor Sa — AccorHotels — Shareholder Meeting (April 2018)
67 slides from Accor Sa's shareholder meeting presentation, Apr 20, 2018
Slide 1: 2018 Combined Shareholders' Meeting
2018 COMBINED SHAREHOLDERS’ MEETING Friday, April 20, 2018
Slide 2: Sébastien Bazin
Sébastien Bazin Chairman & CEO SO/ Bangkok, Thaïlande
Slide 3: François Pinon
François Pinon Group General Counsel & Board Secretary Pullman Park Lane, Hong Kong
Slide 4: Jean-Jacques Morin
Jean-Jacques Morin CFO Ibis Styles Singapore On Macpherson, Singapour
Slide 5: 2017: Another year of record results
2017: Another year of record results Gross Volume Revenue EBITDA EBIT Rec. FCF €18bn €1,937m €626m €492m €435m +19% +7.9% +8.1% +10.1% x2 Excl. Forex L/L L/L L/L ACCORHOTELS / COMBINED SHAREHOLDERS' MEETING April 20, 2018 / 6
Slide 6: Strong revenue growth in all segments
Strong revenue growth in all segments 2016 2017 Variation HotelServices In €m In €m Reported L/L Gross volume at €18bn, up 19% excluding currency effect HotelServices 1,524 1,746 +14.6% +5.1% New Businesses 44 100 N/A +6.9% AccorHotels Revenue Hotel Assets 599 616 +2.9% +7.0% Variance between L/L an
Slide 7: A record opening level in 2017 with more than 300 hotels
A record opening level in 2017 with more than 300 hotels Openings by segment Openings by region (in % of rooms) (in % of rooms) 20% Rixos 16% Luxury & Upscale South 6% 16 hotels America 7k rooms France & Switzerland 1% BHG NCAC >1/3 21 hotels Luxe & 3k rooms 23% Haut de Europe 31% Gamme Midscale Org
Slide 8: Continuing consolidation of our market shares
Continuing consolidation of our market shares (At December 31, 2017 – in rooms) 169k Network 152k 4,283 Hotels 28k 24k 616k 3k Rooms 8k Europe 168k NCAC 99 France & Switz. 75k Countries 52k 48k Pipeline 33k 19k ASPAC 874 Hotels MEA 161k South America Rooms ACCORHOTELS / COMBINED SHAREHOLDERS' MEETIN
Slide 9: MGallery London Leicester Square
MGallery London Leicester Square United Kingdom
Slide 10: Novotel Singapore On Stevens
Novotel Singapore On Stevens Singapore
Slide 11: Pullman Zhouzhuang Resort & Spa
Pullman Zhouzhuang Resort & Spa China
Slide 12: ibis Bangkok impact
ibis Bangkok impact Thailand
Slide 13: Jo&Joe Hossegor
JO& Joe Jo&Joe Hossegor France
Slide 14: Rixos Premium Dubai
Rixos Premium Dubai United Arab Emirates
Slide 15: Fairmont Royal Palm
Seu Fairmont Royal Palm Morocco
Slide 16: Solid increase in operational results
Solid increase in operational results (in €m) HOTEL NEW HOTEL HOLDING & SERVICES BUSINESSES ASSETS INTERCOS Revenue 1,746 100 616 (525) 1,937 EBITDA 656 (25) 96 (101) 626 2017 EBITDA margin 38% N/A 16% N/A 32% EBIT 576 (33) 50 (100) 492 EBIT margin 33% N/A 8% N/A 25% Revenue 1,524 44 599 (520) 1,646
Slide 17: New Businesses crossed the €100m in Revenue
New Businesses crossed the €100m in Revenue 100M€ Revenue 10% Underlying L/L growth (rebased 12 months) Stable EBITDA Breakeven by 2019 confirmed Gekko acquisition closed in January ACCORHOTELS / COMBINED SHAREHOLDERS' MEETING April 20, 2018 / 18
Slide 18: Hotel Assets revenue, EBITDA, EBIT
(In €m) 2016 2017 Stable revenue reflecting: - Asset management strategy including Revenue 3,986 3,985 HotelF1 and renovation programs EBITDA 533 522 - Offset by sound operating momentum in Europe EBIT 300 522 Depreciation stopped as per IFRS 5 Income before tax 188 410 Income tax and minority (84)
Slide 19: An improving debt profile
An improving debt profile 6.51% 4.5 4.6 5 4.2 4.5 5.37% 3.5 3.6 4 AccorHotels is 2.9 2.8 4.28% 3.5 committed to 3 3.11% Investment Grade 2.89% 2.85% 2.5 2 2.04% S&P & Fitch 1.5 1 ratings both 0.5 at BBB- 0 2011 2012 2013 2014 2015 2016 2017 Rate Maturity (in years) ACCORHOTELS / COMBINED SHAREHOLDER
Slide 20: 2017 Proposed Dividend
2017 Proposed Dividend 2016 2017 Profit before non-recurring items, net of tax(1) (in €m) 469 538 Profit before non-recurring items, net of tax per share (in €) 1.81 1.87 Ordinary Dividend per share(2) (in €) 1.05 1.05 Ordinary Dividend (in m€) 299 302 Payment in cash (1) Operating profit before tax
Slide 21: Q1 2018 Revenue
Q1 2018 Revenue Q1 2017 Q1 2018 Change HotelServices In €m In €m Reported L/L Gross volume at €4.1bn, up 9% excluding currency effect HotelServices 563 553 -1.8% +7.7% New Businesses 13 31 N/A +14.5% Hotel Assets & Other 164 157 -4.2% +7.5% AccorHotels Revenue Holding & Intercos (111) (108) N/A N/A
Slide 22: AccorHotels share performance vs. CAC 40
AccorHotels share performance vs. CAC 40 125% 115% 45.00€ AccorHotels +14% depuis 1 an 5,077 pts 105% CAC 40 +6% depuis 1 an 5,392 pts 39.55€ 95% April 2017 October 2017 April 2018 ACCORHOTELS / COMBINED SHAREHOLDERS' MEETING April 20, 2018 / 23
Slide 23: Sébastien Bazin
Sébastien Bazin Chairman & CEO Sofitel Luang Prabang, Laos
Slide 24: Ready to seize a new growth phase
Ready to seize a new growth phase Financial Digital Strong value Segment Asset-light AccorHotels creation at M&A profile initiatives positionning model Stronger successful improved recognized AccorInvest revamped transition than ever ACCORHOTELS / COMBINED SHAREHOLDERS' MEETING April 20, 2018 / 25
Slide 25: Strong profitability improvement
Strong profitability improvement (including AccorInvest) +8% CAGR 765 696 665 602 515 526 521 449 11.9% 12.4% 12.9% 11.0% 9.3% 9.6% 9.3% 8.4% 2010 2011 2012 2013 2014 2015 2016 2017 EBIT (€m) EBIT margin (%) ACCORHOTELS / COMBINED SHAREHOLDERS' MEETING April 20, 2018 / 26
Slide 26: An optimized portfolio
An optimized portfolio Luxury: +19 pts in 4 years Emerging: +7 pts in 4 years 41% 8% 5% South America Luxury & NCAC Upscale 27% 25% France & Economy Switzerland 27% ASPAC 32% 27% Midscale 8% Europe MEA 2017 Fees by segment 2017 Room Portfolio by region ACCORHOTELS / COMBINED SHAREHOLDERS' MEETING Ap
Slide 27: Solid infrastructures to support high growth
Solid infrastructures to support high growth CLIENTS 41m A SINGLE APP 9m Loyalty members X2 vs 2014 +70% Price updates per day vs 5m in 2014 Revenue vs 2016 HOTELS 1.7 X4.5 968 Booking/Second Ratio “Look-to-book”* Sollicitations since 2014 per booking in 2017 ACCORHOTELS / COMBINED SHAREHOLDERS' MEE
Slide 28: Acquisitions: €6.3bn in 4 years mainly in hospitality
Acquisitions: €6.3bn in 4 years mainly in hospitality 2014-17 Non-recurring Capex (€bn) & % of total Investments since 2014 HOTEL SERVICES 3.7bn 60% HOTEL ASSETS 2.0bn 30% €2bn hotels assets acquired NEW BUSINESSES 0.6bn 10% ACCORHOTELS / COMBINED SHAREHOLDERS' MEETING April 20, 2018 / 29
Slide 29: Disciplined investment policy
Disciplined investment policy • Extend and secure our existing leadership • Accelerate our development in specific markets and/or segments HOTELSERVICES • Complement service offering to guests and partners • Favor mid-size targets • Respect strict financial criterias • Multiply touchpoints • Client
Slide 30: AccorHotels is stronger than ever
AccorHotels is stronger than ever Powerful brands Pipeline Gross volume In K rooms +50% In €bn X2 X2 25 161 18 13 112 9 2012 2017 2012 2017 2012 2017 System growth Yearly openings Market Cap. In K rooms In K rooms In €bn +37% +35% X2 616 41 13 450 30 6 2012 2017 2012 2017 2012 2017 ACCORHOTELS / COM
Slide 31: AccorInvest
AccorInvest CREATE ACCORINVEST OPEN ACCORINVEST AN INDEPENDENT LEGAL ENTITY TO INVESTORS 45% 55% Long term institutional investors ACCORINVEST HotelServices Management MAJORITY OF Brands owner, hotel agreements HOTELINVEST ASSETS operator & digital player Owned & Leased Asset owner ACCORHOTELS / COM
Slide 32: Key transaction parameters
Key transaction parameters CA PIF GIC Assurances CLNS Amundi Autres 45% 55% €6.25bn €4.4bn Q2 2018 Enterprise value Cash for AccorHotels Expected closing ACCORHOTELS / COMBINED SHAREHOLDERS' MEETING April 20, 2018 / 33
Slide 33: Long term relationship with AccorInvest
Long term relationship with AccorInvest Management Agreements Fully funded vehicle Dividends €3.6bn debt financing secured 5% dividend yield based on 30 to 50 years duration including undrawn lines to transaction NAV execute 2017-2021 Plan AccorHotels representation Liquidity rights Fees Voting righ
Slide 34: €4.4bn of cash available
€4.4bn of cash available 1 2 3 € Return to shareholders Preserve Tactical M&A strategy investment grade status Objective to buy-back & up to €1.350bn Increase balance sheet of share capital flexibility (c.10% of current market Cap.) ACCORHOTELS / COMBINED SHAREHOLDERS' MEETING April 20, 2018 / 35
Slide 35: A fast growing industry
A fast growing industry 6,286 +7% 5,114 p.a. +3.5% 3,986 p.a. 2010 2017 2020 Travel & Tourism spending (in $bn) Source: WTTC ACCORHOTELS / COMBINED SHAREHOLDERS' MEETING April 20, 2018 / 36
Slide 36: Global trends are particularly favorable for the Group
Global trends are particularly favorable for the Group General trends will support the Specific trends will support hospitality industry growth AccorHotels growth China already 2x larger than US for 8% growth in international arrivals in travel exenditures Europe & 5% in ASPAC 2nd fastest growing in
Slide 37: A diversified portfolio of strong brands
A diversified portfolio of strong brands Luxury & Upscale Midscale & Economy Hospitality services ACCORHOTELS / COMBINED SHAREHOLDERS' MEETING April 20, 2018 / 38
Slide 38: All initiatives increase value for guests and partners
All initiatives increase value for guests and partners Brand & guest services expertise Distribution & revenue power CRM & Loyalty program knowledge Hotel Grow Business Scale, density and strong growth potential Guests differentiated non-hotel solutions Extend New B2B touchpoints out
Slide 39: A Group committed through Planet 21
A Group committed through Planet 21 ACCORHOTELS / COMBINED SHAREHOLDERS' MEETING April 20, 2018 / 40
Slide 40: Positive hospitality benefitting from innovation
Positive hospitality benefitting from innovation SUPPORTING THE LOW PROMOTING SUSTAINABLE TAKING ACTION FOR A CARBON TRANSITION AGRICULTURE MORE INCLUSIVE SOCIETY > Partnership with Energy Observer > Jaccede.com: facilitating access for > Signing of the French Business Climate persons with reduced m
Slide 41: Six strategic levers to grow AccorHotels
Six strategic levers to grow AccorHotels SUSTAINABLE ATTRACT CONVERT RETAIN DEMAND with world class brands thanks to a via enhanced GENERATION supported by superior seamless distribution personalization operational execution experience & loyalty strategy STRONG EXPAND MULTIPLY BUSINESS and hyper den
Slide 42: Committed talents: the Group's key strength
Committed talents: the Group’s key strength 250,000 EMPLOYEESWORKING UNDER ACCORHOTELS BANNERS WORLDWIDE DIVERSITY COMMITMENT DEVELOPMENT 29% 77% 800 OF OUR HOTEL MANAGERS IN-HOUSE INSTRUCTORS CERTIFIED OF OUR EMPLOYEES BY THE ACCORHOTELS ARE FEEL COMMITTED TO THE GROUP ACADEMY (up 5 pts) 42% WOMEN
Slide 43: Cultural transformation: key initiatives in 2017
Cultural transformation: key initiatives in 2017 COM Y HEARTIST JOURNEY SWAP YOUR JOB ‘Shadow Comex II’ > 65% head office employee > 180 Super Transformers > 14 members: 7 women and 7 men participation rate > 1,250 hotels and 2,500 Transformers > Deployment at the country-level > 300 hotel operators
Slide 44: Governance
François Pinon Governance Grand Mercure Basildene Manor, Australie
Slide 45: Membership of the Board of Directors
Membership of the Board of Directors (After the Combined Shareholders’ Meeting) 13 members (of which 2 members representing employees) 54% of directors are independent 45% of directors are women ACCORHOTELS / COMBINED SHAREHOLDERS' MEETING April 20, 2018 / 47
Slide 46: Board of Directors' work in 2017
Board of Directors’ work in 2017 15 meetings with an average attendance rate of 88% Key topics covered: > Monitoring of the process of turning HotelInvest into a subsidiary and opening up AccorInvest’s capital to investors > Acquisitions (Availpro, BHG, Gekko, Mantra, Travel Keys and VeryChic) > Co-
Slide 47: 5 specialized Board Committees
Board Committees 5 specialized committees > Audit & Risks Committee (6 members) > Commitments Committee (5 members) > Appointments & Compensation Committee (8 members) > Corporate Governance, Compliance & CSR Committee (4 members) > International Strategy Committee (6 members) ACCORHOTELS / COMBINED
Slide 48: Report of the Appointments & Compensation Committee
Sophie Gasperment Report of the Appointments & Compensation Committee Pullman Kaifeng Jianye, Chine
Slide 49: Chairman & CEO compensation
Chairman & CEO compensation COMPENSATION PAID OR COMPENSATION POLICY FOR AWARDED FOR 2017 2018 (EX-POST SAY ON PAY) (EX-ANTE SAY ON PAY) Fixed annual compensation €950,000 €950,000 €1,505,719 0-150% of the reference amount of €1,250,000 Variable annual compensation Or 120.5% of the reference amount
Slide 50: Deputy Chief Executive Officer compensation
Deputy Chief Executive Officer compensation COMPENSATION PAID OR COMPENSATION POLICY FOR AWARDED FOR 2017 2018 (EX-POST SAY ON PAY) (EX-ANTE SAY ON PAY) Fixed annual compensation €600,000 €600,000 €722,745 0-150% of the reference amount of €600,000 Variable annual compensation Or 120.5% of the refer
Slide 51: Statutory Auditors' Report
David Dupont-Noël & Jacques Pierres Statutory Auditors’ Report Sofitel Vienna Stephansdom, Autriche
Slide 52: Central Works Council Presentation
François Pinon Central Works Council Presentation Novotel Melbourne South Warf, Australie
Slide 53: Resolutions
François Pinon Resolutions Fairmont Royal Palm Marrakech, Maroc
Slide 54: First and second resolutions
First and second resolutions APPROVAL OF THE 2017 FINANCIAL STATEMENTS OF THE COMPANY AND THE GROUP Consolidated revenue: €1,937 million Consolidated EBIT: €492 million ACCORHOTELS / COMBINED SHAREHOLDERS' MEETING April 20, 2018 / 56
Slide 55: Third resolution
Third resolution APPROPRIATION OF NET PROFIT AND DIVIDEND Ordinary dividend of €1.05 per share Payment in cash Payment date: May 15, 2018 ACCORHOTELS / COMBINED SHAREHOLDERS' MEETING April 20, 2018 / 57
Slide 56: Fourth resolution
Fourth resolution DIRECTORS’ FEES Total amount of directors’ fees: €1,320,000 From the financial year beginning on January 1, 2018 ACCORHOTELS / COMBINED SHAREHOLDERS' MEETING April 20, 2018 / 58
Slide 57: Fifth resolution
Fifth resolution APPROVAL OF THE RENEWAL OF RELATED-PARTY COMMITMENTS GIVEN TO SÉBASTIEN BAZIN Renewal of commitments given to Sébastien Bazin with regard to: • supplementary pension plans • unemployment insurance plans • termination benefits ACCORHOTELS / COMBINED SHAREHOLDERS' MEETING April 20, 20
Slide 58: Sixth and seventh resolutions
Sixth and seventh resolutions COMPENSATION PAYABLE TO THE CHAIRMAN AND CEO AND THE DEPUTY CEO FOR 2017 Ex-post say on pay Approval of the fixed, variable and exceptional components of total compensation and other benefits of any kind paid or allocated to Sébastien Bazin, Chairman and Chief Executive
Slide 59: Eighth and ninth resolutions
Eighth and ninth resolutions COMPENSATION POLICY APPLICABLE TO THE CHAIRMAN AND CEO AND THE DEPUTY CEO FOR 2018 Ex-ante say on pay Shareholder vote on the principles and criteria for determining, allocating and awarding the fixed, variable and exceptional components of the total compensation and oth
Slide 60: Tenth resolution
Tenth resolution APPROVAL OF THE TRANSFER OF CONTROL OF ACCORINVEST GROUP SA Advisory vote on the proposed transfer of control of AccorInvest Group SA to third-party investors AMF Position-Recommendation DOC No. 2015-05 and Article 5.4 of the AFEP-MEDEF Code Purpose: to enable the AccorHotels Group
Slide 61: Eleventh resolution
Eleventh resolution AUTHORIZATION TO TRADE IN THE COMPANY'S SHARES Maximum number of shares that may be acquired: 29 million (i.e., 9.99% of the share capital at December 31, 2017) Maximum purchase price: €70 per share Maximum investment: €2.03 billion No buyback permitted during a public offer peri
Slide 62: Twelfth resolution
Twelfth resolution ISSUE OF FREE SHARE WARRANTS TO SHAREHOLDERS IN THE EVENT OF A PUBLIC OFFER Maximum issue: 25% of the share capital Implementation subject to the prior approval of a special committee of the Board of Directors, chaired by the Vice-Chairman and comprising three independent director
Slide 63: Thirteenth resolution
Thirteenth resolution ACCESS TO SHARE CAPITAL FOR EMPLOYEES WHO ARE MEMBERS OF AN ACCOR GROUP EMPLOYEE STOCK OWNERSHIP PLAN Issue of shares reserved for employees who are members of a Group employee stock ownership plan, representing up to 2% of the Company’s capital, less the shares issued pursuant
Slide 64: Fourteenth resolution
Fourteenth resolution POWERS TO CARRY OUT FORMALITIES ACCORHOTELS / COMBINED SHAREHOLDERS' MEETING April 20, 2018 / 66
Slide 65: Q&A Session
Q&A SESSION Banyan Tree Phuket, Thaïlande
Slide 66: Voting on resolutions
VOTING ON RESOLUTIONS Sofitel Singapore Resort & Spa, Singapour
Slide 67: 2018 Combined Shareholders' Meeting
2018 COMBINED SHAREHOLDERS’ MEETING Friday, April 20, 2018