Corporate Presentation Q1 2014 Carlson Rezidor Hotel Group 665 - - PowerPoint PPT Presentation

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Corporate Presentation Q1 2014

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Carlson Rezidor Hotel Group

665hotels

76,000 rooms

189 hotels

32,000 rooms

430 hotels

95,000 rooms

THE AMERICAS ASIA PACIFIC EMEA

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Creation of the Carlson Rezidor Hotel Group: A strategic, global partnership refined to exploit synergies

Deliver the brand promises Accelerate global development Establish clear, compelling positioning for each brand Win the revenue battle Build a global team and organisation

Key Objectives

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RANK COMPANY 2013 HOTELS 2013 ROOMS 1 INTERCONTINENTAL 4,602 676,000 2 HILTON 3,992 652,000 3 MARRIOTT 3,672 639,000 4 WYNDHAM 7,342 627,000 5 CHOICE 6,198 497,000 6 ACCOR 3,515 450,000 7 STARWOOD 1,121 328,000 8 BEST WESTERN 4,024 312,000 9 HOME INNS 1,772 214,000 10 CARLSON REZIDOR 1,077 166,000 RANK COMPANY 2013 HOTELS 2013 ROOMS 1 ACCOR 2,396 258,000 2 BEST WESTERN 1,312 90,600 3 INTERCONTINENTAL 574 89,200 4 GROUPE DU LOUVRE (*) 974 70,400 5 CARLSON REZIDOR (**) 255 51,800 6 NH HOTELES 347 50,800 7 WHITBREAD 641 50,700 8 HILTON 205 46,600 9 MELIA 195 44,700 10 MARRIOTT 245 44,600

SOURCE I MKG Hospitality 2013 (*) Louvre Hotels Group + Concorde Hotels (**) Rezidor + Park Plaza + Radisson Edwardian

No 10 worldwide No 5 in Europe

One of the world’s ten largest hotel groups

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A portfolio of 430 hotels & 95,000 rooms in 70 countries across EMEA; 35,000 employees 2 strong core brands: Radisson Blu (upper upscale), Park Inn by Radisson (mid-scale) Publicly listed on Stockholm Stock Exchange since 2006 2 new brands: Quorvus Collection (luxury), Radisson Red (lifestyle select) Member of the Carlson Rezidor Hotel Group,

• ne of the world's ten largest hotel groups

Our Mission

We provide unique “Yes I Can!” service

It’s our way of life! It’s about positive attitude! It’s personal! It’s about competence and empowerment!

Our Vision

We will be recognised as:

• Building
• utstanding guest

loyalty by providing memorable experiences

• Committing to

attracting, developing and retaining talent

• Leading the industry

in anticipating trends and responding to changing customer needs

• Caring for our planet

and acting in a sustainable way

• Delivering

consistent and compelling financial returns to our

• wners and

shareholders

• Valuing strong and

long-term relationships with all stakeholders

• Operating

distinctive and market leading brands

• Being the leader in

the Nordics and Emerging Markets

The most passionate team of hoteliers The most innovative and responsible

• rganisation

The preferred hotel company to invest in and to do business with The most dynamic hotel company in EMEA

Our Values

They are strong and differentiate us – which we will further build upon

BEING HOST

Be professional, responsible, focused on qualitative service and provide memorable experiences.

LIVING TRUST

Earn trust through honesty and integrity, empower employees at all levels. We promise, we deliver results.

FIGHTING Z-PIRIT

Always entrepreneurial, innovative and opportunity driven

• quick decision making.

D...DEVELOP TALENT

Attract and retain high calibre team members Invest in team member competencies and talents Drive a Performance and Talent Management Culture Recognize performance and ensure competitive compensation

D...DELIGHT GUESTS

Enhance and deliver the brands’ promises Create and deliver Bright Spots Rekindle the innovation culture Rejuvenate Food & Drink

D...DRIVE THE BUSINESS

Drive profitable Total Revenue Drive intelligent Cost Management and increase operational flexibility Drive profitable growth with a focus on Emerging Markets Drive pro-active Portfolio Management and deleverage the company

D...DELIVER RESULTS

Deliver compelling results for our hotel owners Maximize shareholder value

Our Credo “Whatever you do, DO WITH INTEGRITY. Wherever you go, GO AS A LEADER. Whomever you serve, SERVE WITH CARING. Whenever you dream, DREAM WITH YOUR ALL. And never, ever give up.”

CURTIS CARLSON

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Our global brand architecture

LIMITED SERVICE LUXURY UPPER UPSCALE UPSCALE UPPER MIDSCALE MIDSCALE ECONOMY SELECT SERVICE FULL SERVICE AVERAGE DAILY RATE

Quorvus Collection – our collection of 5* hotels

• Unique identity, personality and story
• Development mainly by conversion

Radisson Blu – our core brand

• Iconic, stylish and sophisticated
• New-built and conversions in major cities and high end markets

Radisson Red – our new offer

• The Millennial Lifestyle
• Mainly new constructions in main cities and/or secondary markets

LUXURY UPPER UPSCALE LIFESTYLE SELECT (UPSCALE) MIDSCALE

Park Inn by Radisson - our core brand

• Mastering the essentials, uncomplicated, vibrant, friendly and fresh
• Focused on conversions

Our brands in EMEA

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Radisson Blu is Europe’s largest upper-upscale hotel brand

Number of Hotels Number of Rooms

188 146 87 71 55 20 40 60 80 100 120 140 160 180 200 Hilton Marriott Crowne Plaza Sheraton 43,900 37,300 21,200 16,400 15,400 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Hilton Marriott Crowne Plaza Sheraton

SOURCE / MKG Hospitality Database / March 2013 (In Operation)

In Operation YTD 2014

71% 28% 1%

Pipeline YTD 2014 Total Portfolio YTD 2014

62% 38% 69% 30% 1% Unbranded 23% 53% 24% 7% 93% 19% 61% 20% Franchise Lease Management

340 Hotels 76,073 rooms 87 Hotels 18,402 rooms 427 Hotels 94,475 rooms

Our growing portfolio

An award-winning Responsible Business Programme

• Our Scandinavian DNA
• First to launch RB programme 1990s
• World Childhood Foundation as

global charity organisation

• One of the World’s Most Ethical

Companies for 4 consecutive Years

Latest initiative:

Think Planet – targeting 25% energy consumption reduction by 2016

Health, Safety & Security for guests and employees Respect for social and ethical issues within the company Reduced environmental impact

3 Pillars of Responsible Business

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FINANCIAL PERFORMANCE Q1 2014

Q1 results ahead of last year but negatively impacted by FX

• L/L RevPAR growth of 5.0%, driven mainly by room rates
• FX, due to the strengthening of the Euro, had negative impact on RevPAR,

revenue and results

• Revenue up 2.1% due to two new leases in Copenhagen and timing of Easter
• The first quarter is seasonally the weakest of the year
• EBITDA margin up 1.0pp to -0.4%, positively impacted by Easter
• EBIT margin up 0.8pp to -4.0%
• Concluded another asset management transaction in January

RevPAR

+5.0%

(L/L) €-8.5m EBIT

+€1.5m

• 0.4%

EBITDA Margin

+1.0pp

€-0.8m EBITDA

+€2m

6.5% 3.0% 2.3% 3.2% 5.6% 5.9% 4.6% 4.2% 5.7% 6.0% 5.9% 5.4% 5.0%

• 2%

0% 2% 4% 6% 8% 10%

L/L Occupancy L/L Average Room Rate L/L RevPAR

2011 2012

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2013

Q1 Q2 Q3 Q4

• Occupancy levels now at same level as during the last peak
• March strongest month linked to reverse of the Easter impact and the related school

holidays mainly in the Nordics

Q1

2014

Underlying RevPAR trends remain positive primarily driven by room rates

All four regions reported L/L RevPAR growth over last year. Strongest development in the Middle East & Africa

NORDICS EASTERN EUROPE REST OF WESTERN EUROPE MIDDLE EAST & AFRICA

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2013 2014 1.8% 0.8% 3.4% 0.7% 8.8% 3.8% 2.3% 4.4%

• 5%

5% 15% 25%

L/L Occupancy L/L Average Room Rate L/L RevPAR

2.0% 3.6% 2.2% 1.2% 4.2% 4.8% 5.5% 4.5%

• 5%

5% 15% 25%

L/L Occupancy L/L Average Room Rate L/L RevPAR 11.9% 6.1% 5.7% 4.0% 1.2% 8.9% 6.2% 4.6%

• 5%

5% 15% 25%

L/L Occupancy L/L Average Room Rate L/L RevPAR

17.1% 13.0% 7.9% 20.5% 13.5% 7.8% 8.9% 6.4%

• 5%

5% 15% 25%

L/L Occupancy L/L Average Room Rate L/L RevPAR

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2013 2014 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2013 2014 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2013 2014

The crisis in Ukraine/Russia has limited impact on profitability due to asset light business model

Rezidor’s operating portfolio

• In Ukraine
• 5 hotels (Kiev (2), Donetsk, Alushta, Bukovel) with ca 900 rooms
• All managed hotels
• Portfolio represents 1% of Rezidor room stock
• Occupancy drop of 10% from already low base
• In Russia
• 27 hotels and 7,700 rooms
• 22 managed and 5 franchised hotels
• 10% of Rezidor room stock
• Domestic business confidence somewhat weekend
• Outbound business effected by Rubel depreciation

 Ukraine situation remains fragile  Asset light business model hedges financial impact

• 4 conversions of existing hotels
• Extension of Radisson Blu Maputo with residences
• Double signing in Sousse, Tunisia
• Geographic expansion: Moldova

Q1 signings in line with last year

Radisson Blu Resort & Spa, Sousse, Tunisia

100%

Fee-based

49%

Emerging Markets

91%

Radisson Blu Q1 2014

SIGNINGS Q1 2014 Q1 2013 Hotels 6 5 Rooms 1,006 1,091

Radisson Blu Hotel Chisinau, Moldova

Q1 openings ahead of last year

• 4 openings in key focus countries (2x Turkey, 2x

Russia)

• Conversion in the Netherlands with Radisson Blu

Noordwijk aan Zee

• 1 Park Inn addition in Sweden (Lund)

100%

Fee based

74%

Emerging Markets

72%

Radisson Blu Q1 2014

Radisson Blu Palace Hotel, Noordwijk aan Zee

OPENINGS Q1 2014 Q1 2013 Hotels 6 5 Rooms 1,214 977

Openings

• Park Inn Lund, Sweden
• Park Inn Sochi City Centre,

Russia

• 2 new hotels in Turkey: Radisson

Blu Hotel, Istanbul Sisli and Radisson Blu Hotel, Istanbul Tuzla

• Radisson Blu Palace Hotel,

Noordwijk aan Zee, Netherlands

• Radisson Hotel Chelyabinsk,

Russia

Radisson Blu Brand is leading with 17 hotels and Park Inn by Radisson is 3rd with 13 hotels The 2014 report published in April showed us moving up into #1 slot

Carlson Rezidor tops latest Africa Development Report, both in terms of number of hotels and rooms under development

Source: W HOSPITALITY GROUP April 2014:

Rank by Hotels Brand Hotels 1 Radisson Blu 17 2 Hilton 16 3 Park Inn by Radisson 13 4 Marriott 10 5 Noom 8 Rank by Rooms Brand Rooms Change on 2013 1 Hilton 4,700

• 12.5%

2 Radisson Blu 4,300 3.5% 3 Marriott 2,100 19.8% 4 Park Inn by Radisson 1,900 14.1% 5 Kempisnki 1,600 5.8% Rank by Hotels Brand Hotels 1 Carlson Rezidor 30 2 Marriott 26 3 Hilton Woldwide 25 4 Starwood 16 5 Mangalis 15 Rank by Rooms Brand Rooms Change on 2013 1 Carlson Rezidor 6,250 5% 2 Hilton Woldwide 6,200

• 1%

3 Marriott 5,200 34% 4 Starwood 3,500 39% 5 Mangalis 2,200

The 2014 AGM has approved a rights issue of € 60 M to accelerate strategy and profitability initiatives

The capital raised will allow Rezidor to: – Pursue additional opportunities within Asset Management – Continue to invest in leased hotel portfolio at an accelerated pace – Further drive growth with particular emphasis on the Emerging Markets

Terms and Conditions  The subscription price is SEK 22.30 per share  Shareholders have preferential rights to subscribe for 1 new share for 6 existing shares  Total rights issue proceeds of a maximum of approx. EUR 60 million  The share capital shall be increased with not more than 1 625 766 euro  Subscription period runs from and including 5 May to 21 May 2014  Carlson has committed to subscribe for its pro-rata share of the rights issue  The rights issue is subject to approval by the AGM

Q1 2014 Hotel Portfolio

WOLFGANG M. NEUMANN President & CEO KNUT KLEIVEN Deputy President & Chief Financial Officer OLIVIER HARNISCH Executive Vice President & Chief Operating Officer ERIC DE NEEF SVP Marketing, CRM Global Branding Park Inn MICHAEL FARRELL Senior Vice President Human Resources MARIANNE RUHNGÅRD SVP, General Counsel & Secretary to the Board EUGÈNE STAAL Senior Vice President Technical Development ELIE YOUNES Senior Vice President Head of Group Development Age: 51 Seniority: 3 years Age: 59 Seniority: 27 years Age: 46 Seniority: 1 year Age: 49 Seniority: 2 years Age: 57 Seniority: 2 years Age: 53 Seniority: 13 years Age: 49 Seniority: 7 years Age: 36 Seniority: 3 years

Executive Committee

Board of Directors

TRUDY RAUTIO Chairman of the Board STAFFAN BOHMAN Vice Chairman of the Board WENDY NELSON Board Member (Director) GÖTE DAHLIN Board Member (Director) DOUG ANDERSON Board Member (Director) ANDERS MOBERG Board Member (Director) DAVID BERG Board Member (Director) CHARLOTTE STRÖMBERG Board Member (Director)

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