Accor Sa · EURONEXT:AC
Accor Sa — AccorHotels — H1 2015 Earnings Presentation
52 slides from Accor Sa's earnings presentation, Jul 30, 2015
Slide 1: H1 2015 Results
»> ACCORHOTELS Feel Welcome H1 2015 RESULTS July 30, 2015 LEGIND SO! sorirer \\ pullman NOVOTEL Mercure MAMA adagio ibis ibis ibis SHELTER stytes budget
Slide 2: Sébastien Bazin, Chairman and CEO
Sébastien Bazin CHAIRMAN AND CEO ACCORHOTELS | H1 2015 Results 07/30/2015 | 2
Slide 3: Staying the course in a changing environment
Staying the course in a changing environment Solid H1 2015 Fast Group’s results reflecting implementation transformation transformation of the strategy underway Strong performances High quality transactions on New name, across Europe and EMs asset restructuring new signature Fast revenue growth Fast
Slide 4: Key takeaways from the H1 Results
Key takeaways from the H1 Results €2,726m Revenue, up 4.1% LfL Sound cash flow generation and €263m EBIT, up 8% LfL solid financial situation vs. H1 2014 HotelServices HotelInvest RevPAR growth and fast expansion Gross Asset Value (GAV) of €6.7bn at Group level with a 9.6% ROI Initial effects from t
Slide 5: HotelServices
HotelServices Launch of the first global hotel marketplace Hundreds of requests since June A strengthened digital footprint Website* Visits Mobile & App Visits Club Members Facebook Fans +17% +68% +35% +72% 68,6m 815k 58,6m 27,6m 21m 15,6m 16,4m 473k H1-2014 H1-2015 H1-2014 H1-2015 H1-2014 H1-2015 H
Slide 6: HotelServices - Fast expansion
HotelServices - Fast expansion 99 hotels and 15,014 rooms added to the network HotelInvest Luxury & 4% Economy Upscale France 33% 34% 14% Asia Pacific NCEE 39% 12% MMEA 18% Americas 95% Midscale 33% 17% Franchise & Management 19% for Pullman 39% in Asia Pacific contracts alone ACCORHOTELS | H1 2015
Slide 7: HotelInvest: Rapid positive effect from portfolio restructuring
HotelInvest Rapid positive effect from portfolio restructuring Restructuring of Moor Park, Axa and Tritax portfolios now secured Ongoing discussions with institutional partners for further transactions Sharp improvement in margins in H1 thanks to restructuring of assets (59 assets secured in H1; 100
Slide 8: Food & Beverage – A comprehensive action plan
Food & Beverage – A comprehensive action plan CENTRALLY-LED PRIORITIES Finance PROVIDE DATA AND TOOLS LOCALLY-LED Distribution PRIORITIES SUPPORT VOLUME WITH DIGITAL TOOLS Marketing In all regions PROVIDE BRAND GUIDELINES ACTION PLANS TO ADDRESS LOCAL PRIORITIES Culture & Talents Topline and margi
Slide 9: Sophie Stabile, Global CFO
Sophie Stabile GLOBAL CFO ACCORHOTELS | H1 2015 Results 07/30/2015 | 9
Slide 10: H1 2015 Revenue: €2,726m, up 4.1% L/L
H1 2015 Revenue: €2,726m, up 4.1% L/L Like-for-Like +4.1% +€105.2m HotelServices: +6.4% comp (1); HotelInvest: +3.5% L/L Expansion +0.9% +€24.4m 15,014 new rooms (99 hotels) opened in H1 Disposals (2.5)% €(65.4)m Impact of the Asset Management program Currency +2.7% +€68.9m Strong positive effect fr
Slide 11: H1 2015 Revenue - Breakdown by region
H1 2015 Revenue - Breakdown by region HOTELSERVICES HOTELINVEST ACCORHOTELS H1 2015 L/L change H1 2015 L/L change H1 2014 H1 2015* L/L change France 167 +7.3% 770 +1.0% 846 838 +1.9% NCEE 158 +8.8% 1,079 +5.7% 1,015 1,114 +6.2% MMEA 67 +5.0% 206 +7.4% 233 250 +6.8% Asia Pacific 175 +8.5% 134 +3.7% 2
Slide 12: Q2 2015 Revenue: €1,502m, up 2.9% L/L
Q2 2015 Revenue: €1,502m, up 2.9% L/L +2.9% Like-for-Like Like-for-like growth +€41.6m • HotelServices: +5.4% comp(1) • HotelInvest: +2.5% L/L +0.8% Expansion Impact of expansion +€11.7m • Openings: 7,776 new rooms (52 hotels) • 3,528 rooms in Franchise (45% of openings) • 3,937 rooms in Management
Slide 13: Q2 2015 Revenue - Breakdown by region
Q2 2015 Revenue - Breakdown by region HOTELSERVICES HOTELINVEST ACCORHOTELS Q2 2015 L/L change Q2 2015 L/L change Q2 2014 Q2 2015* L/L change France 97 +7.9% 435 -0.1% 492 474 +0.7% NCEE 90 +8.9% 603 +5.2% 569 624 +5.7% MMEA 36 +2.9% 120 +7.4% 133 141 +6.3% Asia Pacific 88 +10.1% 68 +2.3% 134 150 +6
Slide 14: H1 2015 Results - HotelServices & HotelInvest
H1 2015 Results - HotelServices & HotelInvest HOTELSERVICES HOTELINVEST CORPORATES & ACCORHOTELS INTERCOS H1 2015 Figures Revenue 632 2,373 (279) 2,726 EBITDAR 199 674 (37) 837 EBITDAR margin 31.5% 28.4% N/A 30.7% EBITDA 186 287 (35) 439 EBITDA margin 29.4% 12.1% N/A 16.1% EBIT 167 133 (37) 263 EBIT
Slide 15: H1 2015 EBITDAR - Stable margin
H1 2015 EBITDAR - Stable margin TOTAL GROUP H1 2014 H1 2015 €800m €837m 30.9% 30.7% • Initial OPEX related to the digital strategy (-0.4pt; -€11m) Like-for-Like • Fast downturn in Brazil on very high comps (-0.4pt; -€15m) -0.4 pt +€21m Expansion • Complex business environment in France (-0,5pt; -€8m
Slide 16: HotelServices: Solid performances
HotelServices: Solid performances KEY P&L ELEMENTS (IN €M) H1 2014 H1 2015 Revenues Proforma Others 14% Gross Volume €5.7bn €6.2bn Revenue 582 632 EBITDA 188 186 S&M M&F fees funds EBITDA margin 32.2% 29.4% 52% 34% Margin excl. S, M & Digital and loyalty 47.1% 48.4% CASH-FLOW ELEMENTS (IN €M) Fees(1
Slide 17: HotelServices – H1 2015 P&L
HotelServices – H1 2015 P&L MANAGED & SALES, MARKETING FRANCHISED & DIGITAL OTHER ACTIVITIES HOTELSERVICES H1 2015 Figures Revenue 331 213 88 632 EBITDAR 181 (9) 27 199 EBITDAR margin 54.7% (4.4%) 30.9% 31.5% EBITDA 177 (14) 23 186 EBITDA margin 53.5% (6.7%) 26.2% 29.4% EBIT 169 (21) 18 167 EBIT mar
Slide 18: HotelInvest: Fruitful execution of the strategy
HotelInvest: Fruitful execution of the strategy KEY P&L ELEMENTS (IN €M) H1 2014 H1 2015 Hotels by ownership structure Revenue 2,286 2,373 EBITDAR 636 674 EBITDAR margin 27.8% 28.4% Owned Variable 28% EBITDA 216 287 lease 48% Fixed EBITDA margin 9.4% 12.1% lease EBIT 77 133 24% EBIT margin 3.4% 5.6%
Slide 19: HotelInvest transformation generating strong improvement
HotelInvest transformation generating strong improvement H1 2015 Figures OWNED FIXED LEASE VAR. LEASE OTHERS TOTAL Number of hotels 367 322 647 1,336 Revenue 631 639 1,074 29 2,373 EBITDAR 167 203 301 3 674 EBITDAR margin 26.5% 31.8% 28.0% 9.9% 28.4% Rents (7) (159) (220) N/A (387) Depreciations & a
Slide 20: HotelInvest Gross Asset Value – H1 2015 changes
HotelInvest Gross Asset Value – H1 2015 changes +0.3 6.7 In €bn Activity +0.1 Change -0.1 +0.1 6.3 Disposals Expansion & Capex ROI: ROI: 9.7% 9.6% Gross Asset Value at Gross Asset Value at Dec. end 2014 June end 2015 ACCORHOTELS | H1 2015 Results 07/30/2015 | 20
Slide 21: H1 2015 EBIT - Breakdown by region
H1 2015 EBIT - Breakdown by region HOTELSERVICES HOTELINVEST ACCORHOTELS H1 2014 H1 2015 H1 2014 H1 2015 H1 2014 H1 2015 L/L change France (1) 58 53 15 15 73 68 -7.5% NCEE 47 55 46 93 93 149 +31.4% MMEA 20 21 -8 1 11 22 +72.8% Asia Pacific 21 26 -2 (0) 19 26 +27.9% Americas 15 10 7 4 22 15 -48.5% Wo
Slide 22: H1 2015 Net Profit up 68%
H1 2015 Net Profit up 68% Reported In € millions H1 2014 H1 2015 Change EBIT 212 263 +24% Net financial expense (30) (32) Share of profits/(losses) of associates 3 8 Operating profit before tax and non-recurring items 185 239 +29% Non-recurring items (72) (71) Income tax expense (50) (67) Minority i
Slide 23: Solid momentum and seasonal effects generating a strong increase in FCF
H1 2015 - Solid momentum and seasonal effects generating a strong increase in FCF +27% +48% 367m 290m 215m 145m H1-2014 H1-2015 H1-2014 H1-2015 H1-2014 H1-2015 H1-2014 H1-2015 (61)m (64)m (84)m (88)m Funds from Maintenance Expansion Recurring free operations Capex Capex cash flow ACCORHOTELS | H1 20
Slide 24: Credit ratios – Ongoing improvements
Credit ratios – Ongoing improvements In € millions Dec. 2014 June 2015 Gross debt 2,866 2,971 Current financial assets (2,707) (2,853) Net debt 159 118 Adjusted Funds from operations / Adjusted net debt(1) 34.2% 35.3% (1) Net debt adjusted for NPV of minimum lease payments discounted at 7% Standard
Slide 25: Outlook
Outlook • Sound revenue growth in H1 despite France being moderate and very tough conditions in Brazil • Profit streams reflecting the implementation of the strategy • Strong cash flow generation and solid financial situation • Current business trends expected to carry on in H2 2015 • Full-Year 2015
Slide 26: Sébastien Bazin, Chairman and CEO
Sébastien Bazin CHAIRMAN AND CEO ACCORHOTELS | H1 2015 Results 07/30/2015 | 26
Slide 27: Five priorities in 2015
Staying the course in a changing environment Five priorities in 2015 Execute the Asset restructuring Accelerate pace 1 program @ HotelInvest of restructuring Succeed in implementing Progress across our 8 programs 2 key Digital plan initiatives Launch of AccorHotels marketplace Prioritize expansion a
Slide 28: On Track – On Time – On Plan
On Track – On Time – On Plan Recurring uncertain environment and industry challenges were strongly confirmed over the semester Our strategy bears fruit as seen in the interim results New initiatives will foster future growth Transformation to accelerate in H2 2015 at both HotelInvest & HotelServices
Slide 29: Q&A
Q&A ACCORHOTELS | H1 2015 Results 07/30/2015 | 29
Slide 30: Appendices
APPENDICES ACCORHOTELS | H1 2015 Results 07/30/2015 | 30
Slide 31: Quarterly Growth 2014 - 2015
Quarterly Growth 2014 - 2015 Q3 2014 Q4 2014 2014 Q1 2015 Q2 2015 H1 2015 €1,459m €1,403m €5,454m €1,225m €1,502m €2,726m +3.3% +2.1% +0.5% +7.9% +3.0% +5.1% +3.2% +0.5% +0.4% +2.7% +0.9% +1.1% +0.9% +2.3% +0.9% +0.8% +5.6% +0.8% +4.6% +5.1% +3.8% +4.1% +2.9% -2.6% -3.0% -2.0% -2.9% -2.5% -4.4% -1.1
Slide 32: H1 Revenue breakdown by segment
H1 Revenue breakdown by segment HOTELSERVICES HOTELINVEST ACCORHOTELS Luxury Luxury Luxury & Upscale & Upscale & Upscale 14% 16% 24% Economy Economy Economy 34% 40% 39% Midscale 46% Midscale Midscale 45% 42% NB: do not include “others brands” and other “activities” ACCORHOTELS | H1 2015 Results 07/3
Slide 33: HotelInvest - Q2 2015 Revenue: €1,318m, up 2.5% L/L
HotelInvest - Q2 2015 Revenue: €1,318m, up 2.5% L/L L/L Q2 2015 REVENUE GROWTH Luxury & Midscale Economy TOTAL Upscale France +4.4% -1.5% -0.1% -0.1% NCEE +5.9% +4.8% +5.6% +5.2% MMEA +10.6% +5.5% +8.5% +7.4% Asia Pacific +13.3% +1.8% +0.5% +2.3% Americas -12.1% -1.3% -5.7% -6.1% TOTAL +3.5% +2.2% +
Slide 34: Net debt
Net debt In € millions H1 2014 H1 2015 Recurring free cash flow 145 215 Acquisitions (1) (900) (29) Proceeds from disposals 65 80 Dividends (134) (170) Capital increase, net 32 50 Change in working capital (8) (44) Hybrid financial instruments & interest 887 (37) Others (119) (24) Cash flow from dis
Slide 35: ROCE per segment
ROCE per segment June 2014 Dec. 2014 June 2015 In € millions ROCE ROCE Capital employed ROCE Luxury & upscale 9.0% 11.1% 964 13.1% Midscale 15.8% 15.1% 2,797 14.8% Economy 19.4% 18/9% 2,856 17.2% Hotels (1) 16.2% 16.1% 7,063 15.6% Others (24.3)% (21.3)% 275 (21.5)% Total Group 14.4% 14.6% 7,339 14.2
Slide 36: Appendices: RevPAR
APPENDICES RevPAR ACCORHOTELS | H1 2015 Results 07/30/2015 | 36
Slide 37: H1 2015 RevPAR (1/2)
H1 2015 RevPAR (1/2) HOTELINVEST MANAGED & FRANCHISED TOTAL (OWNED & LEASED) OR ARR RevPAR OR ARR RevPAR OR ARR RevPAR H1 2015 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 65.2 +6.7 214 +0.1 139 +11.4 69.5 +4.0 162 -
Slide 38: H1 2015 RevPAR (2/2)
H1 2015 RevPAR (2/2) HOTELINVEST MANAGED & FRANCHISED TOTAL (OWNED & LEASED) OR ARR RevPAR OR ARR RevPAR OR ARR RevPAR H1 2015 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 64.1 +3.9 108 +0.2 69 +6.6 63.7 -0.7 214 +14
Slide 39: Q2 2015 RevPAR (1/2)
Q2 2015 RevPAR (1/2) HOTELINVEST MANAGED & FRANCHISED TOTAL (OWNED & LEASED) OR ARR RevPAR OR ARR RevPAR OR ARR RevPAR Q2 2015 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 73.4 +5.7 231 +1.5 170 +9.9 78.6 +2.6 173 +0
Slide 40: Q2 2015 RevPAR (2/2)
Q2 2015 RevPAR (2/2) HOTELINVEST MANAGED & FRANCHISED TOTAL (OWNED & LEASED) OR ARR RevPAR OR ARR RevPAR OR ARR RevPAR Q2 2015 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 63.9 +3.6 104 -0.6 66 +5.2 66.4 -2.1 219 +16
Slide 41: France
France Q2 2015 OCCUPANCY NET ARR NET REVPAR Managed + HotelInvest % D (L/L, pts) € D (L/L, %) € D (L/L, %) Luxury & Upscale 80.3 +5.1 206.6 +1.0 165.9 +8.2 Midscale 74.0 -0.1 114.8 +0.5 85.0 +0.3 Economy 74.0 -0.9 58.0 +1.4 42.9 +0.2 TOTAL 74.4 -0.2 89.4 +1.7 66.5 +1.4 ACCORHOTELS | H1 2015 Results
Slide 42: Germany
Germany Q2 2015 OCCUPANCY NET ARR NET REVPAR Managed + HotelInvest % D (L/L, pts) € D (L/L, %) € D (L/L, %) Luxury & Upscale 75.7 +2.5 138.4 +5.7 104.8 +9.3 Midscale 73.7 +1.6 88.8 +3.7 65.5 +5.9 Economy 76.3 +2.1 59.1 +2.0 45.0 +5.0 TOTAL 75.1 +1.9 77.9 +3.3 58.6 +6.0 ACCORHOTELS | H1 2015 Results
Slide 43: UK
UK Q2 2015 OCCUPANCY NET ARR NET REVPAR Managed + HotelInvest % D (L/L, pts) € D (L/L, %) € D (L/L, %) Luxury & Upscale 80.5 -1.6 275.9 +0.1 222.2 -1.8 Midscale 80.5 -1.0 121.5 +3.5 97.8 +2.2 Economy 85.8 +0.6 82.2 +5.5 70.5 +6.3 TOTAL 83.5 -0.1 103.5 +3.8 86.4 +3.7 ACCORHOTELS | H1 2015 Results 07/
Slide 44: Appendices: Portfolio at the end of June 2015
APPENDICES Portfolio at the end of June 2015 ACCORHOTELS | H1 2015 Results 07/30/2015 | 44
Slide 45: Portfolio at June 30th, 2015 (1/2)
Portfolio at June 30th, 2015 (1/2) HOTELINVEST MANAGED FRANCHISED TOTAL (OWNED & LEASED) June 30th, 2015 # hotels # rooms # hotels # rooms # hotels # rooms # hotels # rooms Luxury & Upscale 9 1,786 18 1,388 17 3,213 44 6,387 Midscale 48 6,100 219 19,278 134 19,400 401 44,778 Economy 51 5,386 734 51,
Slide 46: Portfolio at June 30th, 2015 (2/2)
Portfolio at June 30th, 2015 (2/2) HOTELINVEST MANAGED FRANCHISED TOTAL (OWNED & LEASED) June 30th, 2015 # hotels # rooms # hotels # rooms # hotels # rooms # hotels # rooms Luxury & Upscale 137 34,845 43 5,014 4 306 184 40,165 Midscale 151 34,488 39 4,468 11 2,585 201 41,541 Economy 109 20,493 82 11
Slide 47: Appendices: H1 and Q2 2015 exchange rates
APPENDICES H1 and Q2 2015 exchanges rates ACCORHOTELS | H1 2015 Results 07/30/2015 | 47
Slide 48: H1 2015 Exchange Rates
H1 2015 Exchange Rates H1 2014 H1 2015 2015 vs. 2014 1€ = X foreign currency average rate average rate Change Brazilian real (BRL) 3.15 3.31 -5.2% Australian dollar (AUD) 1.50 1.43 +4.8% Sterling (GBP) 0.82 0.73 +10.8% American dollar (USD) 1.37 1.12 +18.6% Swiss Franc (CHF) 1.22 1.06 +13.5% ACCORHO
Slide 49: Q2 2015 Exchange Rates
Q2 2015 Exchange Rates Q2 2014 Q2 2015 2015 vs. 2014 1€ = X foreign currency average rate average rate Change Brazilian real (BRL) 3.06 3.40 -11.2% Australian dollar (AUD) 1.47 1.42 +3.3% Sterling (GBP) 0.82 0.72 +11.5% American dollar (USD) 1.37 1.11 +19.4% Swiss Franc (CHF) 1.22 1.04 +14.6% ACCORH
Slide 50: Appendices: Glossary
APPENDICES Glossary ACCORHOTELS | H1 2015 Results 07/30/2015 | 50
Slide 51: Glossary
Glossary REGION ORGANIZATION • France • NCEE: Northern, Central and Eastern Europe (does not include France nor Southern Europe) • MMEA: Mediterranean, Middle-East and Africa (includes Southern Europe) • AsPac: Asia Pacific Region • Americas: Northern, Central and South America “OTHER HOTEL BRANDS”
Slide 52: H1 2015 Results
»> ACCORHOTELS Feel Welcome H1 2015 RESULTS July 30, 2015 LEGIND SO! sorirer \\ pullman NOVOTEL Mercure MAMA adagio ibis ibis ibis SHELTER stytes budget