Accor Sa · EURONEXT:AC
Accor Sa — FY 2023 Earnings Presentation
35 slides from Accor Sa's earnings presentation, Feb 22, 2024
Slide 1: FY 2023 Results
FY 2023 Results F e b r u a r y 2 2 nd, 2 0 2 4
Slide 2: Disclaimer
Disclaimer By reading the following presentation slides, you further agree to be The main risk factors are further developed in Accor’s Universal Registration bound by the following limitations and qualifications: Document which is filed with the AMF (Autorité des Marchés Financiers) and is availabl
Slide 3: Opening remarks
Opening remarks Sébastien Bazin Chairman & CEO ACCOR - FY 2023 RESULTS 3
Slide 4: A spectacular recovery with further upside
A spectacular recovery with further upside FY 24 International travel above 2019 peak Significant recovery upside in ASPAC Million international travelers International travel by destination in 2023 vs. pre-pandemic level 1,459 1,488 22% 1,203 1,284 -12% vs. 2019 -4% -6% -10% 409 -35% SOURCE: UNWTO,
Slide 5: Strong Fundamentals Supporting RevPAR Growth in the Medium Term
Strong Fundamentals Supporting RevPAR Growth in the Medium Term GDP growth & Constrained Supply Demography normalized inflation vs Demand Corporate travel Change in consumption Supportive international strenghtening patterns events in Europe ACCOR - FY 2023 RESULTS 5
Slide 6: FY 2023 Results
FY 2023 Results Martine Gerow Group CFO ACCOR - FY 2023 RESULTS 6
Slide 7: FY 2023 Financial Highlights
FY 2023 Financial Highlights Solid operating performance Record EBITDA & cash generation Robust Q4 23 RevPAR +11% L/L Revenue at €5,056m +18% L/L vs. FY 22 1 vs. Q4 22 1 M&F revenue at €1,300m +29% L/L FY 23 RevPAR +23% L/L vs. FY22 EBITDA at €1,003m 2 2 in line with “low 20s” guidance Above high-en
Slide 8: Q4 23 RevPAR Proved Demand Resilience
Q4 23 RevPAR Proved Demand Resilience Premium, Midscale & Economy Luxury & Lifestyle +10% +6% adj. for +19% FIFA World +8% +15% Cup in Q4 22 +12% +0% +8% ENA MEA APAC Americas Total Luxury Lifestyle Total Occupancy Rate Average Room Rate XX% RevPAR L/L year-on-year ACCOR - FY 2023 RESULTS 8
Slide 9: Portfolio as of December 31st, 2023
Portfolio as of December 31st, 2023 Premium, Midscale & Economy Luxury & Lifestyle Network Pipeline M&F revenue Network Pipeline M&F revenue Hotels 5,052 1,047 Hotels 532 268 €1.2k/room €3.8k/room Rooms 703k 172k Rooms 118k 53k In rooms In rooms 328k 304k 83k 113k 72k 35k 48k 27k 26k 11k ENA MEA APA
Slide 10: +18% Group Revenue Growth in FY 2023
Mondrian Hôtel des Carmes, Bordeaux +18% Group Revenue Growth in FY 2023 In € millions FY 2022 FY 2023 Reported L/L change change M&F 695 854 +23% +27% STO 965 1 076 +11% +11% HA & OTHER 970 1 030 +6% +15% PREM., MID. & ECO. 2,629 2,960 +13% +17% M&F 357 446 +25% +32% STO 1,178 1,359 +15% +18% HA &
Slide 11: +29% M&F Revenue Growth, Boosted by Incentives
Grand Mercure Yichang Waitan, China +29% M&F Revenue Growth, Boosted by Incentives In € millions FY 2022 FY 2023 Reported L/L change change ENA 427 512 +20% +21% MEA APAC 212 270 +27% +38% AMERICAS 56 71 +28% +32% PREM., MID. & ECO. 695 854 +23% +27% LUXURY 261 326 +25% +32% LIFESTYLE 97 120 +24% +3
Slide 12: Group EBITDA above the €1bn Mark
Pullman Lyon Centre, France Group EBITDA above the €1bn Mark In € millions FY 2022 FY 2023 Reported L/L change change M&F 513 611 +19% +23% STO (60) 24 N/A N/A HA & OTHER 140 115 (18)% (10)% PREM., MID. & ECO. 593 750 +27% +35% M&F 224 298 +33% +43% STO (16) 25 N/A N/A HA & OTHER (3) 30 N/A N/A LUXU
Slide 13: +57% Growth in Net Profit
+57% Growth in Net Profit In € millions FY 2022 FY 2023 EBITDA 675 1,003 DEPRECIATION, AMORTIZATION AND PROVISION (228) (279) EBIT 447 723 SHARE OF PROFITS/LOSSES OF ASSOCIATES AND JVS 33 44 NON-RECURRING ITEMS 63 12 OPERATING PROFIT 543 779 NET FINANCIAL EXPENSE (84) (100) INCOME TAX (76) (39) MINO
Slide 14: Record Cash Flow Generation
Record Cash Flow Generation In € millions FY 2022 FY 2023 EBITDA 675 1,003 COST OF NET DEBT (75) (59) INCOME TAX (CASH) (65) (144) REIMBURSEMENT OF LEASE LIABILITIES (73) (100) NON-CASH ITEMS 49 43 FUNDS FROM OPERATIONS 511 743 RECURRING INVESTMENT / CAPEX (159) (218) WORKING CAPITAL AND CONTRACT AS
Slide 15: Solid Balance Sheet & Strong Increased Shareholder Return
Solid Balance Sheet & Strong Increased Shareholder Return Benefit from balance sheet initiatives Accelerated shareholder return Restored Investment Grade rating % of market cap 1 (beginning of the year) 11.0% by S&P and Fitch (with stable outlook) 7.3% 6.5% Successful refinancing 2 of €500m hybrid 5
Slide 16: Accor Exceeded its Guidance in 2023 and Confirms Mid-Term Perspectives
Accor Exceeded its Guidance in 2023 and Confirms Mid-Term Perspectives Guidance FY23 Actual FY23 Guidance FY23-27 REVPAR GROWTH (YOY) “Low 20s” +23% +3-4% NUG +2-3% +2.4% +3-5% M&F REVENUE GROWTH +18-22% +29% +6-10% Marginally Marginally SERVICES TO OWNERS EBITDA €49m positive positive GROUP EBITDA
Slide 17: Closing remarks
Closing remarks Sébastien Bazin Chairman & CEO ACCOR - FY 2023 RESULTS 17
Slide 18: FY23 Social & Environment Targets
FY23 Social & Environment Targets Single-use Food Carbon Diversity & plastics waste emission Inclusion Women in Measurement Implementation of Elimination management of the baseline tracking tool in hotels committees Target 80% of Target 80% of hotels Target 85% of hotels Target 40% the top 300 hotel
Slide 19: Executing on Division Strategic Priorities
Executing on Division Strategic Priorities Premium, Midscale & Economy Luxury & Lifestyle Focus on brands: Strengthen global leadership and • Brand equity further strengthened, through 1 footprint through fast growth in lifestyle 1 revisited simpler brand standards and flagship strategy in luxury an
Slide 20: Key Takeaways
Handwritten Les Capitouls Toulouse, France Key Takeaways 1 Strong FY23 results with record EBITDA & cash flow generation New organization now implemented, 2 focused teams with enhanced accountability Record value of signings, pipeline at all-time high 3 Portfolio strengthening confirmed by higher fe
Slide 21: Appendices
Abbaye des Vaux de Cernay, France Appendices ACCOR - FY 2023 RESULTS 21
Slide 22: FY 2023 Revenue vs. FY 2022 – From Like-for-Like to Reported
FY 2023 Revenue vs. FY 2022– From Like-for-Like to Reported +18% +7% (5)% +20% Like-for-Like Perimeter Currency Reported €775m €285m €(228)m €832m Mainly Paris Society Negative currency effect and Potel & Chabot CAD: €(25)m USD: €(26)m TRY: €(37)m EGP: €(38)m AUD: €(61)m ACCOR - FY 2023 RESULTS 22
Slide 23: Q4 Group Revenue
Swissôtel Hefei Grand Park, China Q4 Group Revenue In € millions Q4 2022 Q4 2023 Reported L/L change change M&F 197 226 +14% +19% STO 345 276 (20)% (20)% HA & OTHER 288 274 (5)% +3% PREM., MID. & ECO. 831 775 (7)% (3)% M&F 112 127 +14% +20% STO 389 360 (7)% (3)% HA & OTHER 50 128 +157% +48% LUXURY &
Slide 24: Q4 Management & Franchise Revenue
ibis Styles Rotterdam Ahoy, Netherlands Q4 23 Management & Franchise Revenue In € millions Q4 2022 Q4 2023 Reported L/L change change ENA 104 131 +25% +26% MEA APAC 76 76 +0% +9% AMERICAS 17 18 +11% +17% PREM., MID. & ECO. 197 226 +14% +19% LUXURY 82 93 +13% +20% LIFESTYLE 30 35 +16% +20% LUXURY & L
Slide 25: Q4 2023 Revenue vs. Q4 2022 – From Like-for-Like to Reported
Q4 2023 Revenue vs. Q4 2022– From Like-for-Like to Reported +1% +5% (5)% +1% Like-for-Like Perimeter Currency Reported €18m €68m €(68)m €18m Mainly Paris Society Negative currency effect and Potel & Chabot EGP: €(6)m CAD: €(6)m TRY: €(12)m USD: €(15)m AUD: €(15)m ACCOR - FY 2023 RESULTS 25
Slide 26: RevPAR
3 RevPAR ACCOR - FY 2023 RESULTS 26
Slide 27: RevPAR – Systemwide
RevPAR – Systemwide Q4 2023 vs. Q4 2022 H2 2023 vs. H2 2022 FY 2023 vs. FY 2022 OR ARR REVPAR OR ARR REVPAR OR ARR REVPAR ENA 65.0 0.6 100 6.6 65 7.6 69.3 0.6 101 7.2 70 8.2 67.2 4.2 99 10.8 67 18.0 MEA APAC 69.1 5.1 86 10.2 60 18.7 69.4 5.9 83 11.5 58 21.6 67.4 8.8 85 16.6 57 33.4 AMERICAS 59.2 0.8
Slide 28: Portfolio
4 Portfolio ACCOR - FY 2023 RESULTS 28
Slide 29: Portfolio as of December 31st, 2023
Portfolio as of December 31st, 2023 Owned & Leased Managed Franchised Total #HOTELS #ROOMS #HOTELS #ROOMS #HOTELS #ROOMS #HOTELS #ROOMS ENA 8 2,493 917 137,671 2,033 187,689 2,958 327,853 MEA APAC 41 7,181 790 181,292 814 115,366 1,645 303,839 AMERICAS 54 10,930 167 28,494 228 32,169 449 71,593 PREM
Slide 30: Exchange rates
5 Exchange rates ACCOR - FY 2023 RESULTS 30
Slide 31: FY 2023 Exchange Rates
FY 2023 Exchange Rates 1 foreign currency = X euro FY 2022 FY 2023 FY 2023 Average Rate Average Rate vs. FY 2022 AMERICAN DOLLAR (USD) 0.95 0.92 (2)% AUSTRALIAN DOLLAR (AUD) 0.66 0.61 (7)% BRAZILIAN REAL (BRL) 0.18 0.18 +1% TURKISH LIRA (TRY) 0.06 0.04 (32)% CANADIAN DOLLAR (CAD) 0.73 0.69 (6)% BRIT
Slide 32: Q4 2023 Exchange Rates
Q4 2023 Exchange Rates 1 foreign currency = X euro Q4 2022 Q4 2023 Q4 2023 Average Rate Average Rate vs. Q4 2022 AMERICAN DOLLAR (USD) 0.99 0.93 (5)% AUSTRALIAN DOLLAR (AUD) 0.65 0.60 (6)% BRAZILIAN REAL (BRL) 0.19 0.19 0% TURKISH LIRA (TRY) 0.05 0.03 (38)% CANADIAN DOLLAR (CAD) 0.73 0.68 (6)% BRITI
Slide 33: Glossary
5 Glossary ACCOR - FY 2023 RESULTS 33
Slide 34: Glossary
Glossary Division Region Like-for-like (L/L) definitions organization definition for P&L figures • M&F: • ENA: • Foreign exchange changes vs. Management & Franchise Europe North Africa including Euro are cancelled applying the France, Germany and UK n-1 exchange rate to year n • STO: Services to Own
Slide 35: ACCOR
ACCOR ORIENT EXPRESS \ RAFFLES \ FAIRMONT \ FAENA \ BANYAN TREE \ EMBLEMS \ SOFITEL \ MGALLERY aiff! 21¢ MUSEUM HOTEL \ 25HOURS \ DELANO \ GLENEAGLES \ HYDE \ 3OR20€ \ MAMA SHELTER \ MONDRIAN MORGANS ORIGINALS \ SLS \ SO \ THE HOXTON \ WORKING FROM \ RIXOS \ PARIS SOCIETY MANTIS \ ART SERIES \ PULLM