Accor Sa · EURONEXT:AC
Accor Sa — H1 2008 Earnings Presentation
35 slides from Accor Sa's earnings presentation, Jul 17, 2008
Slide 1: Conference Call H1 2008 Revenue
Conference Call H1 2008 Revenue July 17, 2008
Slide 2: Solid performance in H1 2008 - Revenue: €3,765m
Solid performance in H1 2008 - Revenue: €3,765m Strong performance in Services and Hotels: +€210m +5.2% +5.2% Like-for-like • Q1 2008: +4.8% L/L • Q2 2008: +5.6%L/L Expansion strategy: +€136m, of which +3.4% +3.4% Expansion • Services: +4.0% • Hotels: +3.3% Disposals: -€507m -12.6% -12.6% Disposals
Slide 3: Q2 2008 Revenue: €1,974m
Q2 2008 Revenue: €1,974m Solid Growth in Hotels revenue (L/L) +6.3% +3.7% +5,1% • Restated from Easter vacation effect, Q1 2008 up +5.1% Q2 2008 up +5.1% Q1 2008 Q2 2008 H1 2008 Steady Growth in Services revenue +13.3% +11.8% +10.4% (L/L) Q1 2008 Q2 2008 H1 2008 3
Slide 4: Services H1 2008 Revenue
Services H1 2008 Revenue
Slide 5: H1 2008 Services Revenue: €459m
H1 2008 Services Revenue: €459m H1 2008: +€49m, +11.8% L/L growth +11.8% +11.8% Like-for-like • Q1 2008: +10.4% L/L • Q2 2008: +13.3% L/L • H1 2008 : +14.6% L/L growth excluding Loss of the ONEM contract in Belgium Impact of the law change on tax breaks in Argentina External growth: +€17m, +4.0% of
Slide 6: Sustained Growth in Europe: H1 2008 Services Revenue
Sustained Growth in Europe: H1 2008 Services Revenue : +10.4% L/L L/L Revenue Growth Q1 08 Q2 08 H1 08 • France +14.2% +16.2% +15.2% • UK +13.3% +12.8% +13.1% • Belgium -13.8% -16.4% -15.2% Total Europe +9.5% +11.4% +10.4% France: +16.2% L/L in Q2 2008 • Strong growth supported by sustained demand f
Slide 7: Strong Growth in Latin America
Strong Growth in Latin America H1 2008 Services Revenue : +13.4% L/L L/L Revenue Growth Q1 08 Q2 08 H1 08 • Brazil +5.1% +12.0% +8.6% • Latin America (excl. Brazil) +16.9% +21.0% +19.0% Total Latin America +10.6% +16.2% +13.4% Confirmation of topline recovery in Brazil: +12.0% L/L in Q2 2008 • Stron
Slide 8: H1 2008 Additional Revenue From Acquisitions: €16.7m, +4.0%
H1 2008 Additional Revenue From Acquisitions: €16.7m, +4.0% Benefits Rewards and Loyalty Expense Management Motivano (UK) SurfGold (Asia) +0.4% +1.0% Quasar (Germany) +1.2% Other: +0.2% Platform Prepay Technologies (UK) +1.2% Contribution Contributionof ofacquisitions acquisitionstotorevenue revenue
Slide 9: Hotels H1 2008 Revenue
ACCOR Hospitality Hotels H1 2008 Revenue
Slide 10: H1 2008 Hotels Revenue: €2,810m
H1 2008 Hotels Revenue: €2,810m +5.1% Like-for-like L/L growth: +€146m, +5.1% +5.1% • Q1 2008: +3.7% • Q2 2008: +6.3% Expansion: +€93m +3.3% +3.3% Expansion • Up & Midscale: +4.0% • Economy Europe: +3.2% • Openings: 11,000 new rooms Disposals: Asset right strategy(1): -€200m -7.0% -7.0% Disposals •
Slide 11: Q2 2008 Easter Effect on the Hotels Business
Q2 2008 Easter Effect on the Hotels Business L/L Revenue Growth Q2 08 Easter vacation Q2 08 impact excl. Easter vacation impact Up & Midscale +8.2% -1.6% +6.6% Economy Europe +6.8% -1.2% +5.6% Motel 6 -0.8% - -0.8% Total Hotels +6.3% -1.2% +5.1% Germany, Germany,UK, UK,Benelux BeneluxandandSpain Spa
Slide 12: Up & Midscale - H1 2008 Revenue: €1,681m
Up & Midscale - H1 2008 Revenue: €1,681m L/L Revenue Growth Q1 08 Q2 08 H1 08 France +6.5% +7.0% +6.8% Germany -4.3% +12.6% +4.3% UK +3.3% +7.2% +5.3% Total +3.9% +8.2% +6.2% France • Solid performance in Q2 2008 in the Midscale segment with efficient dynamic pricing: RevPAR up 9.0% for Novotel and
Slide 13: Economy - H1 2008 Revenue: €842m
Economy - H1 2008 Revenue: €842m L/L Revenue Growth Q1 08 Q2 08 H1 08 France +4.9% +5.9% +5.4% Germany -0.2% +8.1% +4.1% UK +7.0% +9.8% +8.5% Benelux +5.1% +3.9% +4.4% Total +5.3% +6.8% +6.1% France • Very strong performance in Q2 2008 in the Economy segment: RevPAR up 11.0% for Ibis Overall strong
Slide 14: Economy – Focus on France
Economy – Focus on France (76K rooms, 49% of Economy Hotel portfolio excl. US) Q1 08 Q2 08 H1 08 France Revpar RevPAR RevPAR • Revpar up 5.2%(1) in H1 2008: growth growth growth Efficient pricing policy (ARR: +5.8%(1)) in a low supply growth environment: +0.4% CAGR over the past 5 years for Ibis +6.
Slide 15: Economy US Hotels - H1 2008 Revenue: €287m
Economy US Hotels - H1 2008 Revenue: €287m L/L Revenue Growth Q1 08 Q2 08 H1 08 Total +0.1% -0.8% -0.4% US Economy chains first hit by oil price increase - Correlation between Occupancy Rates and Gas price: Gas price up 10% => US Economy chains OR down -0.5pt (PWC Study) - Gas price per gallon up 37
Slide 16: Other businesses
Cliquez pour modifier le style du titre du masque Other businesses
Slide 17: Other businesses - H1 2008 Revenue Growth
Other businesses - H1 2008 Revenue Growth H1 08 H1 08 H1 08 H1 08 Reported Reported L/L (€m) Growth (€m) Growth (%) Growth (%) Casinos 170 +11 +6.9% +2.1% Restaurants (1) 134 -183 -57.8% +2.9% Onboard Train Services 148 +18 +13.8% +4.4% Holding & Other (2) 45 -96 -68.3% -2.4% TOTAL 496 -250 -33.5% +
Slide 18: Conclusion
Cliquez pour modifier le style du titre du masque Conclusion
Slide 19: Solid Performance of H1 2008 Revenue
Solid Performance of H1 2008 Revenue Services Services Steady SteadyGrowth Growth Hotels Hotels Solid Solidperformance performanceininall allsegments, segments, particularly particularlyin inour our22largest largestmarkets, markets,France Franceand andGermany, Germany, in inaacontext contextofofaalo
Slide 20: Favorable Perspectives
Favorable Perspectives Accor offers a strong business model based on 2 resilient businesses SERVICES SERVICESand andEUROPEAN EUROPEANECONOMY ECONOMYHOTELS HOTELS 22Fast FastGrowing, Growing, Low LowCyclical CyclicalActivities, Activities, representing (1) representing70% 70%of of2007 2007(1)EBIT EBI
Slide 21: Appendices
Cliquez pour modifier le style du titre du masque Appendices
Slide 22: Main disposals, 2007-2008 Impact on Revenue
Main disposals, 2007-2008 Impact on Revenue Revenue (€m) 2007 Classification Q1 07 Q2 07 H1 07 Q3 07 Q4 07 H2 07 FY 07 Red Roof Inn (1) Eco Hotels US 60 72 132 54 (4) 50 183 GO Voyages (2) Holding Cpies & Other 27 29 56 - - - 56 Scapa Italia (3) Holding Cpies & Other 14 17 31 18 - 18 49 Italian food
Slide 23: Impact of Restatements on Revenue
Impact of Restatements on Revenue Revenue (€m) Q1 07 Q2 07 H1 07 Q3 07 Q4 07 FY 07 Australian Timeshare: Up & Midscale = > Holding Cpies & Other 23 22 45 - - 45 (Restated in 2007 proforma revenue) Loyalty Cards Program: 5 5 10 6 5 21 Services => Up & Midscale Rebranding(1): 10 12 22 13 12 47 Up & Mi
Slide 24: Easter Vacations in European countries
Easter Vacations in European countries End of Q1 24
Slide 25: Hotels: Q2 2008 RevPAR by segment
Hotels: Q2 2008 RevPAR by segment Average room Occupancy Rate RevPAR rate HOTELS : RevPAR Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Q2 2008 (reported) (reported) (reported) & managed (chg in (chg in (chg in (chg in %, (chg in %, (in %) pts) %) %) L/L) reported) Up & Midscale E
Slide 26: Hotels: H1 2008 RevPAR by segment
Hotels: H1 2008 RevPAR by segment Average room Occupancy Rate RevPAR rate HOTELS : RevPAR Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries H1 2008 (reported) (reported) (reported) & managed (chg in (chg in (chg in (chg in %, (chg in %, (in %) pts) %) %) L/L) reported) Up & Midscale E
Slide 27: Up & Midscale Hotels: Q2 2008 RevPAR by Country
Up & Midscale Hotels: Q2 2008 RevPAR by Country UPSCALE & Average room Occupancy Rate RevPAR MIDSCALE rate HOTELS: Number of RevPAR rooms Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries (reported) (reported) (reported) & managed by country Q2 2008 (chg in (chg in (in %) (chg in %) (
Slide 28: Up & Midscale Hotels: H1 2008 RevPAR by Country
Up & Midscale Hotels: H1 2008 RevPAR by Country UPSCALE & Average room Occupancy Rate RevPAR MIDSCALE rate HOTELS: Number of RevPAR rooms Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries (reported) (reported) (reported) & managed by country H1 2008 (chg in (chg in (in %) (chg in %) (
Slide 29: Economy Hotels: Q2 2008 RevPAR by Country
Economy Hotels: Q2 2008 RevPAR by Country ECONOMY HOTELS: Occupancy Average room RevPAR Rate rate RevPAR Number of by country Subsidiaries Subsidiaries Subsidiaries Subsidiaries rooms Subsidiaries Q2 2008 (reported) (reported) (reported) & managed (in local currency) (chg in % (in %) (chg in %) (chg
Slide 30: Economy Hotels: H1 2008 RevPAR by Country
Economy Hotels: H1 2008 RevPAR by Country ECONOMY HOTELS: Occupancy Average room RevPAR Rate rate RevPAR Number of by country Subsidiaries Subsidiaries Subsidiaries Subsidiaries rooms Subsidiaries H1 2008 (reported) (reported) (reported) & managed (in local currency) (chg in (chg in 0 (in %) (chg in
Slide 31: Reconciliation H1 2008 Like-for-Like RevPAR / Revenue
Reconciliation H1 2008 Like-for-Like RevPAR / Revenue RevPAR RevPAR Like-for-like Total Sub. and Sub. Only room Like-for-like Managed Like-for-like revenues revenues Reported Upscale and 3.9% 5.5% 6.2% 5.0% Midscale Europe Economy Europe 4.4% 5.3% 5.6% 5.2% Economy U.S ($) -1.2%(1) -1.6%(1) -0.7%(1)
Slide 32: Q2 2008 Management & Franchise Fees by Segment
Q2 2008 Management & Franchise Fees by Segment Q2 2007 Q2 2008 Change in % Franchised Managed Total Franchised Managed Total Franchised Managed Total Revenue Up & Midscale (€m) 7.8 31.7 39.5 8.5 35.8 44.3 +8.7 +13.2 +12.3 Economy (€m) 6.6 3.0 9.6 7.6 4.3 11.9 +16.1 +40.2 +23.7 Economy US ($m) (1) 2.
Slide 33: H1 2008 Management & Franchise Fees by Segment
H1 2008 Management & Franchise Fees by Segment H1 2007 H1 2008 Change in % Franchised Managed Total Franchised Managed Total Franchised Managed Total Revenue Up & Midscale (€m) 13.7 58.0 71.7 15.1 67.7 82.8 +10.2 16.7 +15.5 Economy (€m) 11.7 5.7 17.4 13.6 7.5 21.1 +15.8 31.4 +20.9 Economy US ($m) (1
Slide 34: Q2 2008 Exchange Rates
Q2 2008 Exchange Rates 2008 vs 2007 1€ = X foreign currency Q2 2007 Q2 2008 Change (in %) US Dollar (USD) 1.35 1.56 -15.9% Sterling (GBP) 0.68 0.79 -16.8% Brazilian real (BRL) 2.67 2.59 +3.3% Venezuelan bolivar (VEF) 2.90 3.35 -15.4% Argentinian Peso (ARS) 4.16 4.87 -17.2% 34
Slide 35: H1 2008 Exchange Rates
H1 2008 Exchange Rates 2008 vs 2007 1€ = X foreign currency H1 2007 H1 2008 Change (in %) US Dollar (USD) 1.33 1.53 -15.2% Sterling (GBP) 0.67 0.78 -14.9% Brazilian real (BRL) 2.72 2.59 +4.5% Venezuelan bolivar (VEF) 2.86 3.32 -15.8% Argentinian Peso (ARS) 4.11 4.80 -16.9% 35