Accor Sa · EURONEXT:AC
Accor Sa — Shareholder Meeting (April 2019)
57 slides from Accor Sa's shareholder meeting presentation, Apr 30, 2019
Slide 1: Combined Shareholders' Meeting, Tuesday, April 30, 2019
Combined Shareholders’ Meeting Tuesday, April 30, 2019 A ACCOR
Slide 2: Sébastien Bazin, Chairman & Chief Executive Officer
Sofitel Luxembourg Le Grand Ducal – Luxembourg 1 Sébastien Bazin Chairman & Chief Executive Officer
Slide 3: Besma Boumaza, Group General Counsel & Board Secretary
Pullman Fuzhou Tahoe - China 2 Besma Boumaza Group General Counsel & Board Secretary
Slide 4: Jean-Jacques Morin, Deputy Chief Executive Officer
Pullman Bangkok Kong Power - Thailand 3 Jean-Jacques Morin Deputy Chief Executive Officer
Slide 5: 2018: another record year
2018: another record year Business volume Revenue EBITDA EBIT Rec. FCF €20bn €3,610m €712m €550m €529m + 19% +8.8% +8.0% + 10.7% +22% excl. forex L/L L/L
Slide 6: 100,000 rooms opened in 2018
100,000 rooms opened in 2018 By segment By region 49% Asia-Pacific 44% Luxury & Upscale 17% Middle-East & Africa 34% 16% Europe Midscale 10% 22% North America, Central America & Caribbean Economy 8% South America Organique Total 300 hotels 138 hotels 86 hotels 18 hotels 10 hotels 8 hotels 28 hotels
Slide 7: 5% net portfolio growth
5% net portfolio growth AT DECEMBER 31, 2018 – IN ROOMS 333k Network Hotels 4 780 Rooms 704k 212k Countries 100 97k 62k 59k 40k 42k 38k Pipeline 15k 5k Hotels 1 118 Europe Asia-Pacific Middle East South America North America, & Africa Central America & the Caribbean Rooms 198k
Slide 8: October 2018: Novotel Bangkok Sukhumvit – Thailand
October 2018: Novotel Bangkok Sukhumvit – Thailand
Slide 9: June 2018: Mercure Shanghai Hongqiao Soho – China
June 2018: Mercure Shanghai Hongqiao Soho – China
Slide 10: March 2018: Fairmont Austin – USA
March 2018: Fairmont Austin – USA
Slide 11: December 2018: Ibis Styles Amsterdam Schiphol – Netherlands
December 2018: Ibis Styles Amsterdam Schiphol – Netherlands
Slide 12: Strong revenue growth in all segments
Strong revenue growth in all segments In € millions 2017 2018 Reported L/L change change Hotel Services 2,484 2,618 + 5.4% + 8.4% Hotel Assets 752 1,086 + 44.5% + 8.4% New Businesses 100 149 + 49.4% + 2.4% Holding & Intercos (248) (243) N/A N/A Total 3 087 3 610 + 16.9% + 8.8% Pullman Bangkok Grande
Slide 13: Net profit of €2.2bn with sale of AccorInvest
Net profit of €2.2bn with sale of AccorInvest In € millions 2017 2018 EBITDA 622 712 Depreciation, amortization and provision expenses (126) (162) EBIT 497 550 Share of net profit of associates and joint ventures 28 80 Non-recurring items (99) (401) Operating profit 425 229 Net financial expense (53
Slide 14: High profitability and cash conversion rate of 83%
High profitability and cash conversion rate of 83% In € millions 2017 2018 FY18 recurring expenditure by segment EBITDA 622 712 Cost of net debt (71) (53) 63% HotelServices Income tax (cash) (51) (130) Non-cash items & other 54 89 5% New Businesses Funds from operations 555 617 25% Recurring expendi
Slide 15: Swift redeployment of proceeds from AccorInvest sale
Swift redeployment of proceeds from AccorInvest sale €(529)m €1,888m €339m €388m €1,153m €1,993m €(4,825) m €850m €323m €727m Net Debt Rec. FCF AccorInvest Other Dividends Share buyback M&A Acquisition of Orbis takeover Net debt 2017 proceeds Paris bid 2018 headquarters
Slide 16: A solid balance sheet made even stronger
A solid balance sheet made even stronger Cost of debt optimized Average maturity extended IFRS debt repayment schedule(²) 4,6 4,8 years 4,5 4,2 3,5 3,6 3,6 4,3% 3,1% 2,9% 2,9% 868 2,0% 1,9% 609 603 1,8%(1) 497 343 201 78 2013 2014 2015 2016 2017 2018 Feb. 2019 2019 2020 2021 2022 2023 2024 Au-delà (
Slide 17: Accor share performance vs. CAC 40 index
Accor share performance vs. CAC 40 index 115 110 105 + 2% CAC 40 100 95 90 85 - 17% 80 75 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19
Slide 18: Shareholder return in 2018
Shareholder return in 2018 May 2018 July 2018 to March 2019 May 2019 2017 dividend Share buyback 2018 dividend €1.05 per share €850m, for 21.8m securities €1.05 per share i.e., €323m i.e., €297m
Slide 19: Q1 2019 revenue growth of 8.8% L/L
Q1 2019 revenue growth of 8.8% L/L In € millions Q1 2018 Q1 2019 Reported L/L change change Hotel Services 569 645 +13.5% +7.3% Hotel Assets & Other 157 323 +106.0% +8.9% New Businesses 31 37 +22.0% +10.0% Holding & Intercos -21 -19 N/A N/A Total 735 987 +34.2% +8.8% Hotel La Coupole MGallery by Sof
Slide 20: Solid prospects
Solid prospects Rixos Premium Bodrum - Turkey Continue growing EBITDA toward 2022 target of €1.2bn Finalize integration of 2018 acquisitions Maintain high level of cash conversion Consolidate asset-light model
Slide 21: Sébastien Bazin, Chairman & Chief Executive Officer
Raffles Makati - Philippines 4 Sébastien Bazin Chairman & Chief Executive Officer
Slide 22: 2018, a turning point
2018, a turning point Move to an Priorities of new Investment of sale proceeds asset-light model strategic model €2bn in acquisitions Global sales Sale of 65% Distribution & Loyalty Marketing €4.8bn cash proceeds Leverage the strengths of our brands 93% of portfolio now Talent & Culture managed or f
Slide 23: Results in line with our medium-term targets
Results in line with our medium-term targets KPI Medium-term target 2018 achievement RevPAR > +3% CAGR +5.6% Net portfolio growth +5% +5.0% HotelServices & Holding +10-12% +10.7% EBITDA growth Recurring free cash > 10% CAGR +22% flow growth Cash conversion rate(1) > 70% 83% (1) Cash conversion rate
Slide 24: Strong potential for development in our core markets
Strong potential for development in our core markets 25 Spain 20 Italy Hotel ratio (rooms to k inhabitants) USA 15 UK Canada France UAE Singapore Germany Saudi Arabia Australia Thailand Portugal 10 Japan Argentina Mexico Chile Bolivia Turkey 5 Vietnam Poland Egypt China Morocco Indonesia Brazil Russ
Slide 25: Strategic priorities of the new asset-light model
Strategic priorities of the new asset-light model Talent & Culture Distribution & Loyalty Marketing Let our people Optimize traffic Enhance brand awareness shine and distribution to drive additional RevPAR Retain key talent and Launch a new brand and loyalty Optimize return on build expertise promis
Slide 26: Empowering our people
Empowering our people Attracting talent Improving gender diversity Developing skills 80,000 35% 91% new hires in 2018 of women hotel managers of employees trained in 2018 54% Less than 5% 1,000 of employees under 35 gender pay gap in-house instructors trained in equivalent positions by Accor Académi
Slide 27: Community outreach, a Group pillar for 25 years
Community outreach, a Group pillar for 25 years An approach incorporated Accor, the industry CSR leader into our new asset-light model Huge impact thanks to employee commitment 8.3% reduction in CO2 emissions between 2015 and 2018; 7m trees planted since 2009; Offering our hotel owners services 82%
Slide 28: An ambitious marketing and loyalty strategy
Rixos Saadiyat Island Abu Dhabi – United Arab Emirates An ambitious marketing and loyalty strategy Boost our loyalty efforts Align our practices with best-in-class Enhance our visibility and the performance of the loyalty program Transform our engagement strategy
Slide 29: Leveraging augmented hospitality
Leveraging augmented hospitality BEYOND HOSPITALITY MAIN HOTELS BRANDS PARTNERS Multiplying touchpoints with our guests
Slide 30: High-growth-potential partnerships
High-growth-potential partnerships Members High growth potential Contribution In millions of members linked to partnerships $250m to $600m* 110 100 59% for our 50% 80 43% competitors 35% 60 30% 50 $6m MARRIOTT IHG HILTON WYNDHAM Accor HILTON MARRIOTT IHG WYNDHAM Accor Since 1983 1983 1987 2004 2008
Slide 31: Marketing: building strength and developing our brands
Marketing: building strength and developing our brands Enhance brand equity 2019-2021 Grow Improve fees A virtuous cycle performance to boost our brands Increase our pipeline
Slide 32: Marketing spend focused on the Group's key brands and markets
Marketing spend focused on the Group’s key brands and markets Breakdown by brand Breakdown by market Raffles MEA 6% 5% USA France Ibis 10% 25% Fairmont 26% 14% Singapore 3% Australia 7% Sofitel 14% China 8% Novotel 16% Germany Brazil 19% Pullman Mercure 12% 9% 12% UK 14%
Slide 33: €225m investment: €60m in additional EBITDA from 2021
€225m investment: €60m in additional EBITDA from 2021 €60m incremental EBITDA €225m in investments through 3 levers Loyalty program 10pt rise in contribution from loyalty program Support the transformation of our new loyalty strategy Partnerships >€100m partnership revenue Amplify experiences and bo
Slide 34: We are tackling the future with great confidence
We are tackling the future with great confidence The Group has everything it needs to succeed Strong brands Partners We have completed a major transformation phase and are now Financial strength starting to execute our asset-light Global geographic coverage strategy Technology Development pipeline T
Slide 35: Governance
Raffles Boston – Etats-Unis 5 Governance Besma Boumaza
Slide 36: Membership of the Board of Directors
Membership of the Board of Directors (AFTER THE SHAREHOLDERS’ MEETING) 11 directors (of which 2 directors representing employees) 55% of directors are independent 44% of directors are women
Slide 37: Board of Directors' work in 2018
Board of Directors’ work in 2018 12 meetings with an average attendance rate of 78% Key topics covered : Finalization of Booster Approval of acquisitions, investments and partnerships Launch of a public tender offer on Orbis shares Implementation of a share buyback program
Slide 38: Board Committees
Board Committees 4 specialized committees Audit, Compliance & Risks Committee (6 members) Commitments Committee (5 members) Appointments, Compensation & CSR Committee (8 members) International Strategy Committee (5 members)
Slide 39: Report of the Appointments, Compensation & CSR Committee
SO Sofitel Auckland – New Zealand 6 Report of the Appointments, Compensation & CSR Committee Sophie Gasperment Committee chairman
Slide 40: Statutory Auditors' Reports
Rixos Borovoe - Shchuchinsk - Kazakhstan 7 Statutory Auditors’ Reports Jean-Christophe Goudard EY
Slide 41: Presentation of the resolutions
SO Sofitel Hua Hin - Cha Am - Thailand 8 Presentation of the resolutions Besma Boumaza
Slide 42: First and second resolutions
First and second resolutions APPROVAL OF THE PARENT COMPANY AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 Consolidated revenue: €3.61 billion Net profit, Group share: €2.23 billion
Slide 43: Third resolution
Third resolution APPROPRIATION OF PROFIT AND DIVIDEND PAYMENT Ordinary dividend of €1.05 per share Payment in cash Payment date: May 14, 2019
Slide 44: Fourth to tenth resolutions
Fourth to tenth resolutions RE-ELECTION OF DIRECTORS Re-election for a statutory three-year term of the following directors: Sheikh Nawaf Aziz Sophie Qionger Bin Jassim Bin Jabor Al-Thani Aluthman Fakhroo Gasperment Jiang Nicolas Isabelle Sarmad Sarkozy Simon Zok
Slide 45: Eleventh to fourteenth resolutions
Eleventh to fourteenth resolutions APPOINTMENT AND RENEWAL OF THE STATUTORY AND ALTERNATE AUDITORS Statutory Auditors: PricewaterhouseCoopers and EY Alternate Auditors: Patrice Morot and Auditex
Slide 46: Fifteenth and sixteenth resolutions
Fifteenth and sixteenth resolutions APPROVAL OF RELATED-PARTY AGREEMENTS Related-party agreement with Katara Hospitality relating to the creation of an investment fund dedicated to hotel development in Africa Related-party agreement with Kingdom Hotels (Europe) LLC relating to the acquisition of Möv
Slide 47: Seventeenth and eighteenth resolutions
Seventeenth and eighteenth resolutions COMPENSATION OF THE CHAIRMAN & CEO AND DEPUTY CEO FOR 2018 Ex post say on pay (2018): shareholder vote on the fixed, variable and exceptional components of the total compensation and benefits of any kind paid or awarded to Sébastien Bazin, Chairman and Chief Ex
Slide 48: Nineteenth resolution
Nineteenth resolution COMPENSATION POLICY APPLICABLE TO THE CHAIRMAN AND CEO FOR 2019 Ex ante say on pay (2019): shareholder vote on the principles and criteria for determining, allocating and awarding the fixed, variable and exceptional components of the total compensation and benefits of any kind
Slide 49: Twentieth resolution
Twentieth resolution AUTHORIZATION TO TRADE IN THE COMPANY’S SHARES Maximum number of shares that may be acquired: 10% of the share capital Maximum purchase price: €70 per share Maximum investment: €1.96 billion Buyback excluded in public offer period Duration: 18 months
Slide 50: Twenty-first resolution
Twenty-first resolution AUTHORIZATION TO REDUCE THE CAPITAL BY CANCELING SHARES Maximum : 10% of the share capital Duration : 24 months
Slide 51: Twenty-second to twenty-eighth resolutions
Twenty-second to twenty-eighth resolutions FINANCIAL AUTHORIZATIONS TO INCREASE THE COMPANY’S CAPITAL Issue of shares with pre-emptive subscription rights for a maximum amount of 50% of the share capital Issue of shares without pre-emptive subscription rights, through tender offer or reserved offer,
Slide 52: Twenty-ninth and thirtieth resolutions
Twenty-ninth and thirtieth resolutions EMPLOYEE SHARE OWNERSHIP Issue of shares reserved for employees who are members of a Group employee share ownership plan Issue of securities reserved for employees under an employee share ownership transaction Maximum of 2% of the share capital
Slide 53: Thirty-first and thirty-second resolutions
Thirty-first and thirty-second resolutions GRANTS OF FREE SHARES TO EMPLOYEES AND EXECUTIVE OFFICERS Maximum of 2.5% of the share capital Subject to performance conditions Shares granted to executive officers capped at 15% of the total number of shares granted
Slide 54: Thirty-third resolution
Thirty-third 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 Lead Independent Director and co
Slide 55: Thirty-fourth resolution
Thirty-fourth resolution POWERS TO CARRY OUT FORMALITIES
Slide 56: Q&A
Rixos Borovoe – Shchuchinsk – Kazakhstan 9 Q&A
Slide 57: ACCOR
ACCOR RAFFLES \ ORIENT EXPRESS \ BANYAN TREE \ DELANO \ SOFITEL LEGEND \ FAIRMONT \ SLS \ SO \ SOFITEL \ THE HOUSE OF ORIGINALS RIXOS \ ONEFINESTAY \ MANTIS \ MGALLERY \ 21C \ ART SERIES \ MONDRIAN \ PULLMAN \ SWISSOTEL \ ANGSANA 25HOURS \ HYDE \ MOVENPICK \ GRAND MERCURE \ PEPPERS \ THE SEBEL \ MAN