CORPORATE Presentation July 2010 About Us A Portfolio Of More Than - - PDF document

CORPORATE Presentation

July 2010

About Us

A Portfolio Of More Than 400 Hotels & 86,5000 Rooms

One Of The Fastest Gro ing Most

62 Countries across Europe, Middle East & Africa

Growing, Most Dynamic Hotel Companies In The World

5 Dynamic Brands: Radisson Blu, Park Inn by Radisson, Regent, Country Inn and Hotel Missoni

The World

Hotel Missoni: Worldwide License Agreement with Fashion House Missoni Publicly Listed on Stockholm Stock Exchange since 2006

A Glance At Our History

YEAR HISTORIC HIGHLIGHTS 1960 First hotel – SAS Royal Hotel, Copenhagen. World’s first designer hotel designed by Arne Jacobsen 1976 Kurt Ritter joins as General Manager of SAS International Hotel, Luleå, Sweden 1980 First hotel outside Scandinavia – Radisson SAS Hotel, Kuwait 1982 The hotel company becomes an independent unit within SAS with separate legal entity and separate Board 1989 Kurt Ritter appointed President & CEO of SAS International Hotels Head Office moves from Oslo to Brussels First Environmental Policy in place Creation of “Per Axel Brommesson Scholarship Fund” together with SAS Board of Directors Creation of Per Axel Brommesson Scholarship Fund together with SAS Board of Directors 1989-92 InterContinental deal – SAS bought 40% stakes in InterContinental First-ever company-wide Climate Analysis (Employee Satisfaction Survey) launched in 1991 Rezidor acquires 50% stakes in Casino Copenhagen 1993 Project Win – a significant cost saving programme 1994 SIH enters into partnership with Carlson Hospitality Worldwide and creates Radisson SAS 1995 Launch of “Yes I Can!” service philosophy 1996 Launch of Radisson SAS Management School 1997 First hotel company to go asset-light. Divest in real estate and focus on hotel management 1999 Include Africa as a new territory (Opening of Radisson SAS Hotel Waterfront, Cape Town) 2000 100 hotels – a real player in the market JV with MWB to operate Malmaison hotels (6 hotels in operation and 3 under development in the UK)

— 3 —

p ( p p ) Launch of Mentor Mentee Programme to develop future General Managers from within the organisation

A Glance At Our History continued...

YEAR HISTORIC HIGHLIGHTS YEAR HISTORIC HIGHLIGHTS 2001 Launch of Responsible Business programme 2002 Another Master Franchise Agreement with Carlson to develop and operate Country Inn, Park Inn & Regent hotels in EMEA Birth of Rezidor SAS Hospitality T i ti f t ith MWB M l i h t l Termination of agreement with MWB on Malmaison hotels Kurt Ritter wins the Corporate Hotelier of the Year Award by HOTELS magazine 2003 Loss making Year – Impact of 9/11, terrorist threats and SARS on the global economy Master Franchise Agreement with Italian fashion house Cerruti to develop and operate Cerruti Hotels 2004 Another turnaround – results back to black Kurt Ritter receives the Lifetime Achievement Award by IHIF (International Hospitality Investment Forum, Berlin) 2005 Rezidor launches a new lifestyle brand- Hotel Missoni. Under a worldwide License Agreement with Italian fashion house Missoni Partnership with Cerruti terminated Carlson buys 25% shares in Rezidor from SAS 2006 Kurt Ritter celebrates 30 years with Rezidor – 17 years as the CEO One of the fastest growing hotel companies in the world: 270+ hotels – 47 countries – 55,000+ rooms – approx. 24,000 employees Radisson SAS becomes the 2nd largest upscale hotel brand in Europe Revival and launch of Regent as a global luxury brand including rebranding of Seven Seas Cruise line to Regent Seven Seas Cruises Make “Yes I Can!” the company vision – supported by a significant group-wide campaign 3 small letters, one big event – IPO Listed on the Stockholm Stock Exchange Carlson increases stakes to 35% Listed on the Stockholm Stock Exchange. Carlson increases stakes to 35% A new name, a new era – The Rezidor Hotel Group 2007 Carlson becomes the largest shareholders with 42% SAS divests all stakes in Rezidor A new milestone: 300+ hotels and 66,000 rooms for Rezidor: 200 Radisson SAS & 100 hotels for Park Inn (in less than 5 years) across 48 countries

— 4 —

Agreement with World Childhood Foundation as corporate charity organisation

A Glance At Our History continued...

YEAR HISTORIC HIGHLIGHTS YEAR HISTORIC HIGHLIGHTS 2008 Record breaking growth in new signings with 54 new hotels with 12,600 rooms signings 2nd Largest Pipeline in Europe Largest international hotel operator in Russia & CIS Rezidor ranked highest on HVS European Corporate Governance Ranking Radisson SAS ranked the highest scoring brand in upper upscale segment by BDRC Launch of group-wide Responsible Business Training programme – Living & Leading Responsible Business Kurt Ritter receives his second lifetime achievement award at Worldwide Hospitality Awards by MKG Group Credit Crunch turns into one of the most severe economic crisis in the world since the great depression: Launch of “Hedging for Turbulence”,

• ne of the industry’s most significant cost-saving programme with target of MEUR 30 savings annually

2009... Radisson SAS becomes Radisson Blu 2009... Radisson SAS becomes Radisson Blu Park Inn ranked highest on J.D.Power and Associates European Hotel Guest Satisfaction Index Study Rezidor opens Europe’s largest Wine Tower at Radisson Blu Hotel, Zurich Airport First Hotel Missoni opens in Edinburgh Another record breaking year of new hotel openings, despite the recession Kurt Ritter receives the Honorary Doctorate by Oxford Brookes University Rezidor records highest Employee Satisfaction Scores in the history of the company Rezidor records highest Employee Satisfaction Scores in the history of the company Rezidor’s Corporate Website ranks 2nd Best in Europe by Hallvarsson & Halvarsson 2010 Rezidor celebrates 50 years Golden Jubilee together with Radisson Blu Royal Hotel, Copenhagen Radisson Blu becomes the Largest Upscale Hotel Brand in Europe, as per MKG Rezidor to manage the biggest hotel chain in the Baltics (Reval Hotels to be rebranded and managed by Rezidor) C l d R id ll R t b d t F I t ti l H t l C ti T i Carlson and Rezidor sell Regent brand to Formosa International Hotels Corporation, Taiwan Carlson launches its Ambition 2015 strategy aiming at global alignment of Radisson brand Rezidor names one of the Most Ethical Companies of the World by Ethisphere Institute

— 5 —

A History Of Unparalleled Organic Growth

400+ Hotels & 86,000+ Rooms In Operation & Under Development p p

361 389 350 400

Owned Franchised Leased Managed

400+ 207 246 265 279 322 250 300 350 80 100 113 127 146 160 182 100 150 200 29 61 50

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Jun-10

AFRICA IPO

— 6 — — 6 —

Data: 30-June-2010

The World Of Rezidor

• 400+ hotels

300 i ti – 300 in operation – 100+ in pipeline

• 86,000+ rooms

– 64,000+ in operation – 22,000 in pipeline

• 62 countries

— 7 —

Data: 30-June-2010

Portfolio Snapshot

300+ HOTELS – 64,000+ ROOMS ATION

BRANDS CONTRACTS REGIONS

22% 2%

IN OPERA

22% 14% 19% 45% 71% 27% 53% 21% 26%

100+ HOTELS – 22,000 ROOMS

19%

EE MEAO NOR ROWE Radisson Blu Park Inn Others Managed Franchised Leased

ELINE

35% 20% 7% 6% 7%

IN PIPE

37% 8% 56% 37% 87%

— 8 — EE MEAO NOR ROWE Radisson Blu Park Inn Others Managed Franchised Leased

Data: 30-June-2010

O Vi i Our Vision Our Purpose

We provide business and leisure guests with a choice of relevant and excellent hospitality products and excellent hospitality products and services that offer good value, while assuring a competitive return to

• wners

and shareholders and

• wners

and shareholders, and inspiration to employees.

— 9 — — 9 —

Our Values

• Trust: To earn trust, then show it; honesty, integrity and loyalty, we promise –

we deliver

• Openness: Be frank and transparent accessible flexible prepared to listen
• Openness: Be frank and transparent, accessible, flexible, prepared to listen

and to consider all options

• Empowerment: Enable and equip employees to make the decisions that

tt matter

• Respect: Respecting individuals, community and the environment we live and
• perate in
• Nurturing: We engage individuals and are determined to develop and grow

talent from within

• Fighting Spirit: Always entrepreneurial, always opportunity driven, always

hungry for more. Decisive!

• Z-factor: Daring to be different, in a fun & rewarding way

— 10 — — 10 —

The Z-Spirit Many Pioneering Firsts Many Pioneering Firsts

• 1st to go asset light
• 1st to focus on managing other peoples’ brands
• 1st to successfully co-brand

1 t ff F I

• 1st to offer Free Internet
• 1st to have an award winning marketing

partnership with Nespresso

• 1st to offer 100% Guest Satisfaction Guarantee
• 1st to establish ambitious Responsible

B i Business program

• 1st to align “rack rate”/AHR – max 30% gap

— 11 — — 11 —

OUR STAKEHOLDERS we promise we deliver p

12

Our Stakeholders

SHARE HOLDERS INVESTOR COMMUNITY HOLDERS CUSTOMERS MEDIA MEDIA PARTNERS EMPLOYEES HOTELS HOTEL OWNERS

— 13 —

Hotel Owners & Developers

• Win-win contract solutions
• Experienced development team
• Experienced development team
• Innovative and flexible approach
• Quick response time
• Increasingly homogenous portfolio
• Strong market recognition

“Fi t ” t li ht lti b d ibl b i t

• “First mover” – asset light, multi-brand, responsible business, etc.

— 14 —

Investors

• Ranked Number 1 on HVS Corporate Governance Ranking for European

li t d i listed companies

• Solid company with strong growth prospects
• Robust and credible expansion plan
• A strong multi-brand portfolio
• Emerging market exposure – opportunity to participate in growth
• Competent management team
• A well-planned and dynamic response to 2009 global recession – launched
• ne of the industry’s most ambitious cost saving plan

— 15 —

Guests

• A culture of innovative hospitality and pioneering initiatives

Contract flexibility

• Individuality … no cookie cutter
• Local adaptation of international brands
• Strategic design and service concepts

Experienced development team

• Strategic design and service concepts
• Priced to sell, not to discount
• Sell them what they want to buy

Strong market recognition

— 16 —

Communication & Public Relations Media Analysts Partners & Employees

• Ranked at Top 2 position for Best Corporate Website in Europe on

H ll & H l R ki

Media, Analysts, Partners & Employees

Contract flexibility

Hallvarsson & Halvarsson Ranking

• Industry-leading group-wide magazine called Hotline with a readership of

20,000 in 75 countries

Experienced development team

• Live webcasts of Annual Capital Market Days
• Annual Business Conference to address top issues and long-term strategies
• Dedicated Financial Centre and Media Room to ensure transparency and
• Dedicated Financial Centre and Media Room to ensure transparency and

accuracy, and timely flow of strategic information

• Advanced internal communication tools to involve, inform and engage

employees across 60+ countries

Strong market recognition

employees across 60+ countries

• Helping build a positive image of the company and its brands

— 17 —

Community & Environment

• Award winning Responsible Business programme that walks the talk
• Seven years in existence with environmental programme in place since mid

Seven years in existence with environmental programme in place since mid 1990s

• Taking responsibility for well-being of employees and guests

R ti th i l d thi l i i th ll i th

• Respecting the social and ethical issues in the company, as well as in the

community

• Reducing the company’s negative impact on the environment
• World Childhood Foundation as global charity organisation
• Ranked World’s Most Ethical Hotel Company in 2010 by Ethisphere Institute, US

— 18 —

Employer Of Choice

• A team of 35,000+
• 140 nationalities
• Hire attitude and train for skills
• Promote from within : 95% of our General Managers are “home grown”
• Highest Employee Satisfaction score in 2009 despite the economic crisis

Highest Employee Satisfaction score in 2009, despite the economic crisis

• Training & Development

– Rezidor Business School – Mentor Mentee Programme – Centres of Excellence M t D l t P – Management Development Programme – Rezidor Learning Network

— 19 — — 19 —

The INDUSTRY

World Travel & Tourism Economic Impact and Forecasts

• International tourist arrivals increased by 7% in the first 4 months of 2010 marked by

uneven recovery

p

– Europe +0.3% – Middle East +33% – Africa +7% – Asia Pacific +12% – Americas +6%

• International air passenger traffic grew 6% from Jan-Apr 2010 vs drop of 25% in 2009
• International air passenger traffic grew 6% from Jan-Apr 2010 vs drop of 25% in 2009
• IMF’s April 2010 World Economic Outlook highlights stronger than expected recovery

– Emerging economies to grow by over 6% (vs +2.4% in 2009) – Advanced economies to expand by 2% to 3% in 2010 and 2011 (vs -3% in 2009)

• Consumer trend is to book late, book online, travel closer and shorter, and demand

value for money

— 21 —

SOURCE: UNWTO Barometer June 2010

World Travel & Tourism International Tourist Arrivals (Jan – Apr %Change) ( p g )

— 22 —

SOURCE: UNWTO Barometer June 2010

World’s Top Tourism Destinations 2009

— 23 —

SOURCE: UNWTO Barometer June 2010

Market Development

• RevPAR performance is strongly linked to

economic development

• Continued positive RevPAR trend, driven

by higher occupancy

• Rates growing again
• Significant rebound in Germany, Benelux,

UK and France

• Absolute RevPAR still at a low level
• European industry pipelines continue to

contract

— 24 —

Radisson Blu Hotel, Milan

Green Shoots RevPAR % change YOY USD

60 80

Iraq war / SARS rebound Lehman Brothers crash – economic downturn

40 60 20

• 40
• 20

40 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10

— 25 —

Asia Pacific Europe € Europe Middle East Africa North America

SOURCE: STR Global

Europe: 4 Years To Recover?

Rolling-12 RevPAR and Occ, ADR % change

Lower than the Low point of 2003

20 30 €70 €80

p

10 20 €50 €60

• 10

€30 €40

• 20

€10 €20

• 30

€0

Jan-01 Apr-01 Jul-01 Oct-01 Jan-02 Apr-02 Jul-02 Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10

— 26 —

Occ ADR Europe €

Source: STR Global

European City Performance RevPAR % Change YTD-May 2010

Eurozone Change Market Munich 24% 70 Düsseldorf 18% 57 Non-Eurozone Change Market Birmingham 15% 47 Stockholm 14% 69 MEAO (USD) Change Market Beirut 26% 147 Johannesburg 19% 56 Frankfurt 18% 78 Vienna 11% 59 Berlin 10% 55 London 11% 103 Istanbul 10% 91 Madrid 8% 59 Cape Town 16% 83 Jeddah 9% 123 Cairo 4% 87 Amsterdam 8% 84 Zurich 8% 97 Paris 7% 119 Antwerp 4% 53 Malmö 5% 53 Manchester 5% 54 Oslo 4% 66 Gothenburg 4% 51 Riyadh 2% 180 Dubai

• 2%

182 Muscat

• 18%

148 Abu Dhabi

• 50%

130 Antwerp 4% 53 Cologne 3% 61 Hamburg 3% 65 Milan 2% 85 Gothenburg 4% 51 Moscow 3% 83 Edinburgh 2% 57 Glasgow

• 0.5%

47 Brussels 2% 69 Rome 1% 80 Dublin

• 8%

46 Budapest

• 3%

30 Helsinki

• 3%

56 Prague

• 6%

39

— 27 —

Copenhagen

• 10%

51

Source: STR Global

REZIDOR Now

Rezidor Highlights Q2 2010 Q2-2010

• All regions reported RevPAR growth
• Occupancy was still the main driver
• Improving rate trend

St i G F

• Strong recovery in Germany, France,

Benelux, Norway and Switzerland

• Increased margins; driven by Western

Europe Europe

• Strong improvement in cash flow
• Continued momentum of openings and

signings signings

— 29 —

Park Inn Oslo

Strategic Moves

• Sale of Regent completed

– Focus on core brands

• Park Inn becomes “Park Inn by Radisson”

– Reinforcing brand awareness

• Portfolio takeover in the Baltics

– Another leading position

• Asset-light pipeline

– No leases after 2010

• Focus on emerging markets

– High margin, management contracts

— 30 —

The Regent Emirates Pearl, Abu Dhabi

Other Achievements

• 5,400+ rooms opened YTD 2010
• 5,300+ rooms signed YTD 2010
• Europe’s largest upscale brand – Radisson
• Europe’s largest upscale and midscale pipeline
• Leading hotel operator in Russia, CIS and the Baltics

g p ,

• Largest Airport hotel operator in Europe
• Leading hotel chain in the Nordics for Business Traveller (BDRC)
• Winners of Movers & Shakers award in Africa for profound growth
• Strong resort portfolio
• Highest Employee Satisfaction scores in history of the company

Highest Employee Satisfaction scores in history of the company

• World’s Most Ethical Hotel Company award by Ethisphere
• Best Corporate Governance on HVS Board Masters Ranking for Europe

— 31 — — 31 —

Largest Upscale Brand in Europe

170

180

Number of Hotels

38,079 37,985

40,000

Number of Rooms

147

120 140 160 25,000 30,000 35,000

82 53 35

40 60 80 100

19,580 12,077 10,648 7,334

10,000 15,000 20,000

24 20

20 40

son lton riott aza aton fitel ntal

4,036 ,

• 5,000

son lton riott aza aton fitel ntal Radiss Hi Marr Crowne Pla Shera So InterContine Radiss Hil Marr Crowne Pla Shera Sof InterContinen

— 32 — — 32 —

Source: MKG Hospitality Database, March 2010

Highest Ranked on J.D. Powers in European Guest Satisfaction Index

— 33 — — 33 —

Europe’s Largest Upscale & Mid-scale Pipeline

6,139 5,974

3,962 3,860 4,209 3,538 , 3,034 , 1,478 2,014 1 893 1,273 1 051 1,893 1,638 1,051 919

— 34 — — 34 —

SOURCE: STR GLOBAL COMPREHENSIVE PIPELINE OUTLOOK (EUROPE) JUNE 2010

OPENED Q2 & H1-2010

NEW OPENINGS Q2-2010 H1-2010 H1-2009 Hotels 16 20 20 Rooms 4,000 4,700 3,100 % Rooms Fee Based 90% 90% 90% % Rooms Fee Based 90% 90% 90% % Rooms Emerging Markets 80% 75% 55%

Key markets in H1-2010: Moscow (2), Milan, Oslo, Stockholm, Johannesburg

— 35 —

SIGNED Q2 & H1-2010

SIGNINGS Q2-2010 H1-2010 H1-2009 Hotels 16 24 25 Rooms 3,500 5,100 5,000 % R F B d 100% 100% 100% % Rooms Fee Based 100% 100% 100% % Rooms Emerging Markets 80% 70% 85%

Sustained fee based growth

— 36 —

Focus on Emerging Markets

The Opportunity

• Growing share of global GDP less exposed to financial crisis
• Growing share of global GDP, less exposed to financial crisis
• Supply / demand imbalance in many markets

Hi h ti i d t t li ht th

• High operating margins due to asset-light growth

Emerging Markets Strategy Emerging Markets Strategy

• Maintain pole position in Russia/CIS/Baltics
• Operate the most innovative contemporary hotel portfolio in Africa
• Operate the most innovative, contemporary hotel portfolio in Africa
• Continue to grow Middle East portfolio following 2009’s record year for openings

— 37 — — 37 —

Our Background In Emerging Markets

1980 SAS Hotel Kuwait, first hotel outside Scandinavia 1994 Master agreement with Carlson, takeover of hotels in Riga, Budapest, Russia and Poland 1999 Radisson Waterfront Cape Town first hotel in Africa 1999 Radisson Waterfront Cape Town, first hotel in Africa 2001 Radisson Resort Sharm el Sheikh, Egypt, first North Africa resort 2002 Radisson Slavjanskaya, Moscow 2004 Development office in Russia 2005 Afrinord Joint Venture established 2006 IPO St kh l St k E h 2006 IPO on Stockholm Stock Exchange Development office in Cape Town Park Inn Pribaltiyskaya & Pulkovskaya in St. Petersburg (2000+ rooms) 2009 Strategic development agreement with RHC in Russia to develop Park Inns across Russia Joint Venture in South Africa 2010 Opening of Radisson Royal Moscow an iconic landmark

— 38 — — 38 —

2010 Opening of Radisson Royal Moscow, an iconic landmark

Leading Hotel Operator in Russia, CIS & The Baltics

— 39 — — 39 —

Second Largest Pipeline In Africa Number of Hotels Number of Hotels

35 40 25 30 35 15 20 5 10 — 40 — — 40 — SOURCE: W Hospitality April 2010

Africa Portfolio Largest Pipeline In Sub-Saharan Africa

18

Largest Pipeline In Sub-Saharan Africa

12 14 16 6 8 10 2 4 — 41 — — 41 — SOURCE: W Hospitality April 2010

Key Strategies

DEVELOPMENT – KEEP THE PACE Continue Asset-light Growth With Focus On Emerging Markets and Conversions

One Of The Fastest

BRANDS – QUALITY, PROFITABLE GROWTH GLOBAL ALIGNMENT Grow Pure New Breed Profitable Hotels

Fastest Growing, Most Dynamic Hotel Companies In

REVENUE – LEAVE NO STONES UNTURNED Grow Pure, New Breed, Profitable Hotels

Companies In the World

REVENUE LEAVE NO STONES UNTURNED Grasp Every New Business Opportunity Z-FACTOR – FULL THROTTLE Innovation – Work Smarter!

— 42 —

FINANCIAL PERFORMANCE January – June 2010 y

43

L/L Occupancy & Rate Trend

10%

8 8%

• 3.9%
• 0.6%

5.8% 8.0%

• 5.6%
• 1.2%

0% 5%

• 8.8%
• 10.8%
• 5.1%
• 12.3%
• 9.8%
• 15%
• 10%
• 5%
• 13.4%
• 20%

Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10

L/L Occupancy L/L Rate p y

RevPAR recovery in Q2 driven by occupancy

— 44 —

L/L Revpar By Brand & Region

L/L REVPAR BY BRAND L/L REVPAR BY REGION % CHANGE Q2-2010 YTD 2010 % CHANGE Q2-2010 YTD 2010 NO

2.4%

• 0.1%

6.0% 2.0% 8.4% 2.2%

NO

2.4% 0.1%

ROWE

10.4% 6.2%

EE

3.5%

• 3.2%

6.8% 2.4%

EE

3.5% 3.2%

MEAO

6.9% 2.6%

Strong occupancy development in key Park Inn markets

— 45 — NO Nordics ROWE Rest of Western Europe EE Eastern Europe MEAO Middle East, Africa and Other

Other Financial Highlights

P iti ff f it li ti f d f d t t

TAX

• Positive one-offs from capitalisation of deferred tax assets
• A more efficient tax structure going forward will lower the effective tax rate
• Positive cash inflow of ca MEUR 10

SALE OF REGENT

• Capital gain of ca MEUR 4
• Positive effect on Depreciation of ca MEUR 2

p

• Annual positive effect of ca MEUR 2-3 on EBITDA

— 46 —

Income Statement Highlights

IN MEUR Q2-2010 Q2-2009 VAR YTD-2010 YTD-2009 VAR REVENUE 203 173 17% 369 326 13% EBITDAR 71 57 24% 116 95 22% % EBITDAR Margin 35% 33% 2pp 31% 29% 2pp EBITDA 18 7 157% 6 8 n/m EBITDA 18 7 157% 6

• 8

n/m % EBITDA Margin 9% 4% 5pp 2%

• 2%

4pp CAPITAL GAIN 4

• 4
• D&A + FIN ITEMS
• 7
• 8

n/m

• 16
• 14

n/m TAX 2

• 2

n/m 5 n/m S 1 3 / 1 22 / NET RESULT 17

• 3

n/m

• 1
• 22

n/m

Improved margins due to positive market development and tight cost control

— 47 — 1) % of F&B Revenue 2) % of Total Revenue 3) % of Leased Hotel Revenue

p g p p g

Cost Ratios

IN % Q2-2010 Q2-2009 VAR YTD-2010 YTD-2009 VAR COGS1) 26% 26% 0 pp 25% 26% 1 pp PERSONNEL2) 35% 34%

• 1 pp

36% 37% 1 pp OTHER OPERATING EXPENSES2) 22% 24% 2 pp 23% 25% 2 pp RENT3) 29% 31% 2 pp 31% 32% 1 pp GUARANTEES2) 1% 2% 1 pp 3% 4% 1 pp TOTAL COSTS2) 90% 94% 4 pp 97% 101% 4 pp

Effective cost control despite rising occupancy

— 48 —

1) % of F&B Revenue 2) % of Total Revenue 3) % of Leased Hotel Revenue

NOTE 1 % of F&B Revenue NOTE 2 % of Operating Revenue NOTE 3 % of Leased Hotel revenue

Revenue Segmentation

FEE REVENUE – IN MEUR LEASED REVENUE – IN MEUR

82 94 71 80 Q2 10 Q2 09 3 8 7 6 2 8 6 4 Q2 10 Q2 09 NO ROWE Q2 09 NO ROWE EE MEAO Q2 09 150 173 134 151 YTD 10 YTD 09 4 15 11 11 4 13 9 7 YTD 10 YTD 09 NO ROWE YTD 09 NO ROWE EE MEAO YTD 09

Revenue grew in all regions – positive impact from increase in occupancy and weakening of EUR

— 49 —

from increase in occupancy and weakening of EUR

NO Nordics ROWE Rest of Western Europe EE Eastern Europe MEAO Middle East, Africa and Other

EBITDA Segmentation

FEE EBITDA – IN MEUR LEASED EBITDA – IN MEUR

11

• 1

10

• 5

Q2 10 Q2 09 2 4 5 5 1 3 4 3 NO ROWE EE MEAO Q2 10 Q2 09 NO ROWE NO ROWE EE MEAO 7 8 5 5 15

• 11

15

• 16

YTD 10 YTD 09 3 1 2 5 5 NO ROWE EE MEAO YTD 10 YTD 09 NO ROWE

RevPAR recovery and operational gearing

— 50 — NO Nordics ROWE Rest of Western Europe EE Eastern Europe MEAO Middle East, Africa and Other

EBITDA Margin Segmentation

FEE EBITDA MARGIN – IN % LEASED EBITDA MARGIN – IN %

14

• 1

14 Q2 10 Q2 09 62 44 72 77 56 43 79 79 Q2 10

• 1
• 6

NO ROWE Q2 09 10 11 NO ROWE EE MEAO Q2 10 Q2 09 71 72 10

• 7

11

• 10

YTD 10 YTD 09 57 9 66 71 53 3 57 72 YTD 10 YTD 09

Strong margin improvement in ROWE

NO ROWE

• 3

NO ROWE EE MEAO YTD 09 — 51 —

g g p

NO Nordics ROWE Rest of Western Europe EE Eastern Europe MEAO Middle East, Africa and Other

5 Great International Brands

52

Brand Positioning

Four Seasons

CORE COMPETENCE

Luxury

InterContinental Ritz Carlton Armani W Hilton

The upscale brand The luxury brand The lifestyle brand

Brand Management

Bvlgari

Mid k t First class

Marriott Sheraton Sofitel Holiday Inn Novotel Scandic

The mid-market brand Mid-market Economy

Ibis

The “up the sleeve” brand

Culture

• f Service

Increased level of service

Formule 1

Budget

• f Service

— 53 —

SOURCE: HVS International

the stylish four-star plus

• Largest upscale brand in Europe (MKG Hospitality)
• The most improved Upper Upscale Brand (BDRC)
• Leading choice for business travellers in the Nordics (BDRC)
• Number 2 on 2009 J.D. Powers European Guest Satisfaction Index
• Designed to be different – the new breed hotels
• Unique service concepts

Y I C ! O i i – Yes I Can! Our vision – First in Europe to offer free internet – Award winning partnership with Nespresso 100% Guest Satisfaction Guarantee – 100% Guest Satisfaction Guarantee – World class meetings and events facilities

— 54 —

young and innovative mid-market hotels

• Mid-market hotel brand with contemporary Bars & Restaurants
• One of the fastest growing hotel brands in mid-market segment

g g g

• Mastering the essentials
• Warm and casual service, spotlessly clean, easy to use, safe and fun
• Aim to provide quite simply the “Best Sleep in Town”
• Aim to provide, quite simply, the Best Sleep in Town
• BDRC: Most promising Emerging Player
• Ranked highest on 2009 J.D. Powers European Guest Satisfaction Index

— 55 —

Live the Luxury.

• Delivering supreme luxury for the spirit and all the senses
• Architectural excellence, complete comfort and supreme service
• Operating in Bordeaux, Zagreb & Berlin
• Michelin Stars :

“Fi h F it ” b Ch i ti L h t R t B li th d l 2 — “Fischer Fritz” by Christian Loohse at Regent Berlin– the one and only 2 Michelin star restaurants in Berlin — “La Pressoir d’Argent” by Pascal Nibaudeau at Regent Grand Bordeaux

• Coming soon in Dubrovnik, Abu Dhabi & Doha
• Owned by Formosa International, Taiwan

— 56 —

• Bold. Passionate. Fashionable. Uniquely Missoni.
• New lifestyle fashion brand – building on the heritage of over 50 years
• Styled by Rosita Missoni – managed by a strong international operator
• Global appeal and growth potential

Global appeal and growth potential

• Only fashion hotel brand positioned in the upper upscale segment like other competing

lifestyle brands (W, Andaz) and unlike other fashion brands (Armani, Bvlgari)

• Asset-light growth with focus on emerging markets

Asset light growth with focus on emerging markets

• First opening in Edinburgh with huge media rave
• Coming next: Kuwait, Oman, Cape Town & Brazil

— 57 —

LARGEST AIRPORT HOTEL OPERATOR LARGEST AIRPORT HOTEL OPERATOR

90+ R id B d d B & R t t

— 58 —

90+ Rezidor Branded Bars & Restaurants

Stunning New Flagships g g p

59

— 60 — — 60 —

Hotel Missoni Edinburgh, Scotland

— 61 — — 61 —

Radisson Royal Hotel, Moscow Russia’s Most Prestigious Hotel Building

— 62 — — 62 —

Radisson Sonya Hotel, St. Petersburg

— 63 — — 63 —

Radisson Blu Resort & Spa, Dubrovnik Sun Gardens Croatia’s Largest Resort

— 64 — — 64 —

Radisson Blu Hotel, Milan, Italy

— 65 — — 65 —

Radisson Blu Majestic Resort, Galzignano Terme, Italy

— 66 — — 66 —

Radisson Blu Hotel, Madrid Prado, Spain

— 67 — — 67 —

Radisson Blu Hotel & Conference Centre, Salzburg, Austria

— 68 — — 68 —

Radisson Blu Hotel, Hamburg Airport, Germany

— 69 — — 69 —

Radisson Blu Gautrain Hotel, Sandton Johannesburg, South Africa

— 70 — — 70 —

Park Inn Ulysse Resort & Thalasso, Djerba, Tunisia

— 71 — — 71 —

Radisson Blu Resort & Spa, Cesme, Turkey

— 72 — — 72 —

Park Inn & Radisson Blu Hotel, Yas Island, Abu Dhabi

— 73 — — 73 —

Radisson Blu Hotel, Port Elizabeth, South Africa

— 74 — — 74 —

Park Inn Sandton, Johannesburg, South Africa

— 75 — — 75 —

Radisson Blu Hotel, Dakar, Senegal

— 76 — — 76 —

Radisson Blu Al Mahary Hotel, Tripoli, Libya

— 77 — — 77 —

Radisson Iveria Hotel, Tblisi, Georgia

— 78 — — 78 —

Radisson Blu Hotel. Gdansk, Poland

Coming Soon g

79

Scandinavia’s Largest Congress Centre

139,000 sq. ft. or 13,000 sqm or 3.5 acres , q , q Equal to the size of 2.5 American Football fields 3,000+ people

— 80 — — 80 —

Park Inn Stockholm Waterfront, Sweden

— 81 — — 81 —

Park Inn Malmö, Sweden

— 82 — — 82 —

Park Inn Oslo Gardemoen Airport, Norway

— 83 — — 83 —

Park Inn Stuttgart, Germany

— 84 — — 84 —

Radisson Blu Hotel, Istanbul Asia, Turkey

— 85 — — 85 —

Radisson Belorusskaya Hotel, Moscow, Russia

— 86 — — 86 —

Park Inn Luxembourg City

— 87 — — 87 —

Radisson Blu Resort & Spa, Tangier, Morocco

— 88 — — 88 —

Radisson Blu Hotel, Marrakech, Morocco

— 89 — — 89 —

Radisson Blu Hotel, Ulaanbaatar, Mongolia

— 90 — — 90 —

The Regent Dubovnik, Croatia

— 91 — — 91 —

Radisson Blu Hotel, Cape Town Blaauwberg, South Africa

— 92 — — 92 —

Park Inn Al Diyafa, Makkah, Saudi Arabia

— 93 — — 93 —

The Regent Emirates Pearl, Abu Dhabi

— 94 — — 94 —

Hotel Missoni Kuwait

— 95 — — 95 —

Radisson Blu Hotel, Maputo, Mozambique

— 96 — — 96 —

Radisson Blu Hotel, Lusaka, Zambia

— 97 — — 97 —

Radisson Blu Hotel, Abuja, Nigeria

— 98 — — 98 —

Radisson Blu Hotel & Convention Centre, Kigali, Rwanda

Rezidor – An Exciting Company

Attractive Industry

Strong Portfolio Growth Pipeline 20,000+ rooms

Global brands Leaders in key and emerging markets

rooms

+

Asset light and flexible business model

Significant margin expansion

Substantial contracted development pipeline

=

Continued fast

Attractive partner to hotel owners & developers

Continued fast profitable growth

Significant benefits from partnership with Carlson Attractive partner to hotel owners & developers

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Focus Areas & Financial Targets

FINANCIAL TARGETS FOCUS AREAS

• Better contract mix
• Geographic diversification
• Focus on core brands

Profitability Target EBITDA margin of 12% over a business cycle

• Focus on core brands

– Leverage the Radisson brand endorsement

• Maintain the new fixed cost base

Balance Sheet Small positive average net cash position

• Synergies from the size of the

business

• Current pipeline to generate

Dividend Policy Approximately one third of annual after-tax income to be distributed to shareholders Current pipeline to generate 2-2.5% pts on EBITDA margin

— 100 — — 100 —

WELCOME TO THE DYNAMIC WORLD OF REZIDOR

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WELCOME TO THE DYNAMIC WORLD OF REZIDOR