Slide 1: FY 2020 Results
FY 2020 Results February 24th, 2021 A ACCOR
Slide 2: Disclaimer
By reading the following presentation slides, you further agree to be bound by the following limitations and qualifications: This presentation is for information purposes only and does not constitute an offer or solicitation for the sale or purchase of any securities, any part of the business or ass
Slide 3: Opening remarks
Opening remarks Sébastien Bazin Chairman & CEO
Slide 4: An unprecedented crisis in 2020
An unprecedented crisis in 2020 Only 2% of countries Only China posts with no restrictions positive GDP in 2020 2% 1% 2% GDP variations +8.0% 15% 13% 15% +6.0% +6.1% 24% 26% 44% +4.2% +2.8% +3.2% +2.2% +1.8% +1.5% +1.5% +0.6% 85% 87% 83% 76% 73% 54% (3.7)% Apr. May Jun. Jul. Sep. Nov. (5.5)% (11.2)%
Slide 5: Travel restrictions severely impacted RevPAR
Travel restrictions severely impacted RevPAR Market RevPAR UNWTO – Number of Travelers severely impacted Million international travelers 1,459 0% -50% 674 2011 Subprime 2003 crisis SRAS 379 -90% 74% decline 29-Feb 25-Apr 20-Jun 15-Aug 10-Oct 05-Dec 30-Jan in FY20 2000 2004 2008 2012 2016 2020 US Eur
Slide 6: Accor weathered the storm
Accor weathered the storm Our staff & owners Our guests Our shareholders 1 Caring for people 1 Implementation of 62,000 beneficiaries in cancellation/flexible 1 Focus on financial or medical distress commercial policy cash preservation & cost savings 2 Simplifying the 2 ALLSafe protocol organisation
Slide 7: Accelerating plan delivery
Accelerating plan delivery Asset-light path New organization Acceleration in lifestyle FOCUS Full consolidation of Disposals of SIMPLIFY & Exclusive negotiations with leased hotel portfolio EXPAND to create the world-leading platform in lifestyle
Slide 8: FY 2020 Results
FY 2020 Results Jean-Jacques Morin Deputy CEO
Slide 9: FY 2020 financial highlights
FY 2020 financial highlights Performance better than Business highlights Strong balance sheet provided sensitivity 1 Systemwide RevPAR 1 Convertible Bond issuance (62)% L/L 1 €(391)m EBITDA €500m 7-year EBITDA sensitivity 6.5x oversubscribed below €19m per RevPAR pt 2 Net Organic System Growth 2 RCF
Slide 10: Controlling the controllable: Operating Leverage
Controlling the controllable: Operating Leverage Decreased EBITDA sensitivity to RevPAR Reduced monthly cash burn March H1 H2 €28m “North of €20m” provided in April “Less than €20m” provided in August €(42)m €19m €18m €(79)m “€80m” provided in August “€100m” provided in May €(150)m March H1 H2
Slide 11: Quarterly sequential RevPAR improvement outside Europe
Quarterly sequential RevPAR improvement outside Europe Europe Asia Pacific 5.1% 3.3% 1.2% 1.0% 0.3% -0.6% -1.1% Asia -1.9% Pacific -23.2% -51.5% -33.7% -58.8% -56.7% -73.1% -77.4% -90.6% China -68% -63% -29% -18% Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3
Slide 12: +1.9% net organic system growth
+1.9% net organic system growth In rooms, as of December 2020 346k Network Hotels 5,139 242k Rooms 753k 99k Pipeline 66k 62k 54k 42k 37k Hotels 1,209 13k 3k Rooms 212k Europe Asia-Pacific Middle East South America North America, & Africa Central America & the Caribbean
Slide 13: Revenue decline in line with RevPAR
Revenue decline in line with RevPAR Reported L/L In € millions 2019 2020 change change HotelServices 2,894 1,142 (61)% (60)% Hotel Assets 1,077 398 (63)% (46)% New Businesses 159 91 (43)% (43)% Holding & Intercos (81) (9) N/A N/A Total 4,049 1,621 (60)% (55)% Mantis Costa Rica
Slide 14: M&F revenue drop amplified by incentive fees
M&F revenue drop amplified by incentive fees L/L In € millions 2019 2020 change Europe 525 135 (74)% ASPAC 214 76 (64)% MEA 107 29 (75)% NCAC 132 37 (72)% South America 49 15 (65)% Total 1,026 292 (71)% Mama Shelter Luxembourg
Slide 15: EBITDA mainly driven by HotelServices
EBITDA mainly driven by HotelServices Reported L/L In € millions 2019 2020 change change HotelServices 741 (257) (135)% (133)% Hotel Assets 216 3 (98)% (78)% New Businesses (2) (25) N/A N/A Holding & Intercos (129) (112) N/A N/A Total 825 (391) (147)% (140)% Mondrian Seoul Itaewon, South Korea
Slide 16: Impact on Hotel Assets & Other mitigated by cost actions
Impact on Hotel Assets & Other mitigated by cost actions Revenue driven by Australia EBITDA decline mitigated MEA South 3% America Through 11% 1 Severance plan and variable leases effects Europe in Brazil & Turkey 16% 2 Furloughing in Australia & Europe Australia Other 68% ASPAC 2% 3 Solid summer se
Slide 17: From EBITDA to Net Profit: AccorInvest & impairment
From EBITDA to Net Profit: AccorInvest & impairment In € millions FY 2019 FY 2020 EBITDA 825 (391) Depreciation, amortization and provision (328) (274) (a) • AccorInvest EBIT 497 (665) Share of net losses of associates and JVs 3 (578) (a) Non-recurring items (o/w impairments) 177 (958) (b) (b) • Ass
Slide 18: Working capital drags in FY 2020
Working capital drags in FY 2020 In € millions FY 2019 FY 2020 EBITDA 825 (391) Cost of net debt (73) (66) Income tax (cash) (122) 16 Reimbursement of lease liabilities (137) (84) Non-cash items & other 104 160 FUNDS FROM OPERATIONS 597 (365) Recurring investment (161) (102) Working capital and cont
Slide 19: Strong liquidity maintained with no significant maturity before 2023
Strong liquidity maintained with no significant maturity before 2023 Debt profile(1) at end-February Liquidity €4.2bn 858 €3.5bn o/w o/w €1.8bn 600 €1.2bn undrawn undrawn RCF 500 500 RCF 296 Commercial Paper 198 24 2021 2022 2023 2024 2025 2026 2027 Dec. 19 Dec. 20 (1) Excluding hybrid
Slide 20: RESET – Per plan/August presentation
RESET – Per plan/August presentation A fast pay-back €200m recurring EBITDA benefit in 2022 €200m 1 Less than 2 years payback €135m Exit run 2 50-50 mix between Staff & Non-Staff costs rate 60% in SMDL €20m 2020 2021 2022 3 €300m implementation costs Non-Staff Staff Non-recurring and below EBITDA it
Slide 21: Closing remarks
Closing remarks Sébastien Bazin Chairman & CEO
Slide 22: Priorities for 2021: Strategic focus & financial discipline
Priorities for 2021: Strategic focus & financial discipline 1 Position to benefit from prospective rebound by leveraging our brands and footprint 2 Deliver on the RESET cost saving plan 3 Deliver and fully leverage our Loyalty platform 4 Accelerate system growth and deliver on pipeline 5 Preserve ta
Slide 23: Our strongest assets
Our strongest assets Brand Distribution Network Balance People Powerhouse Loyalty Leadership Sheet
Slide 24: Today's guests expectations
Today’s guests expectations Safety First Leisure, Lifestyle & Local Flexibility For For 77% 68% 70% of guests, of guests of Meetings & Events planners, hygiene, physical distancing would travel for leisure virtual & hybrid meetings and hotel policies over the coming months will considered over physi
Slide 25: Safety First: preference for branded hotels
Safety First: preference for branded hotels Medical assistance Cleaning protocol partnership Free access to medical teleconsultations Extensive medical networks of Covering both accommodation and vetted medical professionals catering
Slide 26: Building up Accor lifestyle ecosystem
Building up Accor lifestyle ecosystem A fast-growing segment 2% of global branded room supply 13 Lifestyle brands 10% of global branded pipeline 25% of Accor pipeline fees x2 480k Upscale & Luxury x2 240k 170k 115k Midscale 2014 2017 2019 2023E & Economy Figures based on top 60 Lifestyle brands worl
Slide 27: More flexibility
More flexibility For guests For owners For both Hybrid meeting 7 Conversion brands Acceleration in concept with i.e. 43% of our pipeline personalization through Loyalty 55% of hotels already equipped Workspitality® 300+ co-working spots 13 stand-alone flagships
Slide 28: Appendices
Appendices Novotel London Canary Wharf
Slide 29: FY 2020 margin for HotelServices
21c Chicago, USA FY 2020 margin for HotelServices In € millions Management & Services to HotelServices Franchise Owners Revenue 292 850 1,142 2020 EBITDA 25 (282) (257) Margin 8.4% (33.2)% (22.5)% Revenue 1,026 1,867 2,894 2019 EBITDA 765 (24) 741 Margin 74.5% (1.3)% 25.6%
Slide 30: EBITDA impact on HotelServices notably driven by SMDL
EBITDA impact on HotelServices notably driven by SMDL Hotel M&F Services to Owners Services Reimbursed Other In € millions SMDL(1) STO (2) (1) costs services (2) (1)+(2) (a) (b) (c) (a)+(b)+(c) Revenue 292 322 438 90 850 1,142 2020 EBITDA 25 (245) (0) (36) (282) (257) Revenue 1,026 752 984 132 1,867
Slide 31: FY 2020 Revenue – From Like-for-Like to Reported
FY 2020 Revenue – From Like-for-Like to Reported Like-for-Like HotelServices: (59.8)% L/L (1) (54.8)% €(2,221)m New businesses: (42.9)% L/L Hotel Assets: (45.8)% L/L Perimeter Mainly Mövenpick disposal (3.8)% €(155)m Slight negative currency effect Currency (1.3)% €(53)m • TRY: €(4)m • USD: €(7)m •
Slide 32: FY 2020 Management & Franchise EBITDA
Mercure Paris Alésia, France FY 2020 Management & Franchise EBITDA L/L In € millions 2019 2020 change Europe 416 4 (99)% ASPAC 152 22 (86)% MEA 82 (1) (103)% NCAC 92 4 (94)% South America 24 (4) (131)% Total 765 25 (97)%
Slide 33: Q4 revenue
Grand Mercure Dubaï Airport Q4 20 revenue In € millions Q4 Q4 Reported L/L 2019 2020 change change HotelServices 769 268 (65)% (63)% Hotel Assets 285 86 (70)% (45)% New Businesses 40 21 (48)% (47)% Holding & Intercos (19) 1 N/A N/A Total 1,075 376 (65)% (57)%
Slide 34: Q4 Management & Franchise revenue
Tribe Perth, Australia Q4 20 Management & Franchise revenue L/L In € millions 2019 2020 change Europe 134 28 (78)% ASPAC 60 31 (46)% MEA 31 8 (79)% NCAC 31 8 (76)% South America 12 5 (49)% Total 268 81 (69)%
Slide 35: Q4 Revenue – From Like-for-Like to Reported
Q4 20 Revenue – From Like-for-Like to Reported Like-for-Like HotelServices: (63.1)% L/L (1) (57.1)% €(614)m New businesses: (46.6)% L/L Hotel Assets: (45.2)% L/L Perimeter Mainly Mövenpick disposal (5.7)% €(61)m Slight negative currency effect Currency (2.2)% €(24)m • CAD: €(1)m • TRY: €(2)m • USD:
Slide 36: RevPAR
\1\ RevPAR ACCOR - FY20 RESULTS - FeanvARy 24, 2021
Slide 37: RevPAR – Systemwide
RevPAR – Systemwide Q4 2020 H2 2020 FY 2020 OR ARR RevPAR OR ARR RevPAR OR ARR RevPAR Lux. & Upscale 31.6 -34.8 103 -25.2 32 -64.7 30.5 -37.4 107 -24.5 33 -66.2 29.9 -36.9 120 -18.5 36 -63.6 Midscale 31.7 -40.0 62 -25.3 20 -68.3 33.4 -40.3 66 -20.5 22 -65.1 32.5 -38.7 72 -14.6 24 -61.9 Economy 32.0
Slide 38: RevPAR – Geographical breakdown (1/2)
RevPAR – Geographical breakdown (1/2) Q4 2020 H2 2020 FY 2020 OR ARR RevPAR OR ARR RevPAR OR ARR RevPAR Lux. & Upscale 19.3 -46.7 131 -0.4 25 -71.5 25.0 -47.9 159 +6.1 40 -64.6 24.6 -45.0 154 -1.5 38 -65.8 Midscale 20.0 -49.7 74 -20.8 15 -77.3 27.2 -46.5 81 -14.2 22 -68.4 27.7 -43.9 85 -11.0 23 -65.
Slide 39: RevPAR – Geographical breakdown (2/2)
RevPAR – Geographical breakdown (2/2) Q4 2020 H2 2020 FY 2020 OR ARR RevPAR OR ARR RevPAR OR ARR RevPAR Lux. & Upscale 29.5 -37.5 117 -7.6 35 -59.4 25.5 -39.8 114 -11.7 29 -65.8 28.9 -36.6 121 -13.3 35 -62.3 Midscale 41.7 -25.7 51 -21.6 21 -50.2 38.8 -28.1 51 -17.0 20 -50.6 40.1 -25.8 60 -10.1 24 -4
Slide 40: RevPAR – France
RevPAR – France Q4 2020 H2 2020 FY 2020 OR ARR RevPAR OR ARR RevPAR OR ARR RevPAR Lux. & Upscale 17.5 -49.6 161 -14.6 28 -77.6 28.5 -43.9 203 -4.2 58 -62.0 26.9 -43.4 196 -6.3 53 -63.8 Midscale 21.6 -43.4 90 -16.5 19 -72.0 30.8 -39.5 98 -9.7 30 -60.2 29.1 -39.4 100 -8.7 29 -61.1 Economy 29.8 -35.9 5
Slide 41: Portfolio
\2\ Portfolio ACCOR - FY20 RESULTS - FeanvARy 24, 2021
Slide 42: Portfolio as of December 31th, 2020 (1/2)
Portfolio as of December 31th, 2020 (1/2) OWNED & LEASED MANAGED FRANCHISED TOTAL # hotels # rooms # hotels # rooms # hotels # rooms # hotels # rooms Luxury & Upscale 5 2,060 132 25,048 67 12,003 204 39,111 Midscale 29 3,634 350 58,426 597 64,370 976 126,430 Economy 21 3,263 589 77,305 1,265 100,284
Slide 43: Portfolio as of December 31th, 2020 (2/2)
Portfolio as of December 31th, 2020 (2/2) OWNED & LEASED MANAGED FRANCHISED TOTAL # hotels # rooms # hotels # rooms # hotels # rooms # hotels # rooms Luxury & Upscale 1 53 72 27,173 10 3,112 83 30,338 Midscale 0 0 7 2,410 7 1,401 14 3,811 Economy 0 0 20 2,649 3 410 23 3,059 NCAC 1 53 99 32,232 20 4,
Slide 44: Exchange rates
\3\ Exchange rates ACCOR - FY20 RESULTS - FeanvARy 24, 2021
Slide 45: 2020 Exchange Rates
2020 Exchange Rates FY 2019 FY 2020 FY 2019 1€ = X foreign currency Average Rate Average Rate vs. FY 2020 Australian Dollar (AUD) 1.61 1.66 (2.7)% Brazilian Real (BRL) 4.41 5.86 (24.7)% Canadian Dollar (CAD) 1.49 1.53 (2.7)% Egyptian Pound (EGP) 18.88 18.03 +4.7% British Sterling (GBP) 0.88 0.89 (1.
Slide 46: Q4 20 Exchange Rates
Q4 20 Exchange Rates Q4 2019 Q4 2020 Q4 2019 1€ = X foreign currency Average Rate Average Rate vs. Q4 2020 Australian Dollar (AUD) 1.62 1.63 (0.8)% Brazilian Real (BRL) 4.56 6.45 (29.3)% Canadian Dollar (CAD) 1.46 1.55 (6.0)% Egyptian Pound (EGP) 17.88 18.66 (4.2)% British Sterling (GBP) 0.86 0.90 (
Slide 47: Glossary
\4\ Glossary ACCOR - FY20 RESULTS - FeanvARy 24, 2021
Slide 48: Glossary
Glossary Region organization • Europe (including France & Switzerland) • MEA: Middle-East and Africa • ASPAC: Asia Pacific Region • NCAC: North & Central America & Caribbean • South America Like-for-like (L/L) definition for P&L figures • Foreign exchange changes vs. Euro are cancelled applying the
Slide 49: ACCOR
ACCOR RAFFLES \ ORIENT EXPRESS \ FAENA \ 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