Interim Results Q1-2012 Wednesday, April 25, 2012 Kurt Ritter, - - PowerPoint PPT Presentation

▶
interim results q1 2012
SMART_READER_LITE
LIVE PREVIEW

Interim Results Q1-2012 Wednesday, April 25, 2012 Kurt Ritter, - - PowerPoint PPT Presentation

Oct 15, 2022 317 likes •573 views

Interim Results Q1-2012 Wednesday, April 25, 2012 Kurt Ritter, President & CEO Puneet Chhatwal, Executive Vice President & CDO Knut Kleiven, Deputy President & CFO Radisson Blu Hotel Istanbul Asia, Turkey Q1-2012 highlights

slide-1
SLIDE 1

Interim Results Q1-2012

Wednesday, April 25, 2012

Kurt Ritter, President & CEO Puneet Chhatwal, Executive Vice President & CDO Knut Kleiven, Deputy President & CFO Radisson Blu Hotel Istanbul Asia, Turkey

slide-2
SLIDE 2

Q1-2012 highlights

  • L/L RevPAR grew by 6%, highest growth since Q1 2011

and well above market

  • RevPAR strongest in Eastern Europe followed by the

Middle East and Africa

2 /

  • Revenue up 7%, supported by RevPAR growth

and strong meetings and events business

  • EBITDA margin up 2 pp; due to revenue growth

and a good flow-through in the Nordics

Interim Results Q1-2011 / April 22, 2012

slide-3
SLIDE 3

Q1-2012 highlights

  • Launch of “Carlson Rezidor Hotel Group”
  • Strategy “Route 2015”
  • Reinforced and streamlined organisation

3 /

  • Ranked World’s Most Ethical Hotel Company in 2012

by Ethisphere Institute

  • Introduction of “Think Planet”: 25% energy reduction

representing cost saving of MEUR 6 by 2016

Interim Results Q1-2011 / April 22, 2012

slide-4
SLIDE 4

Lack of profitability in Rest of Western Europe

16% 16% 12% 10% 11% 3% 1%

0% 5% 10% 15% 20%

EBITDA margin on lease contracts in the Nordics and ROWE

Nordics ROWE

4 /

  • Lower brand awareness and RevPAR in ROWE than in the Nordics
  • High rent percentages (mainly fixed)
  • Three non strategic and unprofitable leases terminated in 2010 and 2011
  • 8%
  • 4%
  • 2%
  • 10%
  • 5%

2007 2008 2009 2010 2011 4

Interim Results Q1-2012 / April 25, 2012

slide-5
SLIDE 5

“Route 2015” – tangible initiatives to improve the EBITDA margin

Cost savings projects Revenue Generation

6-8%

uplift in EBITDA margin by 2015*

6-8%

uplift in EBITDA margin by 2015* 0.5-1% 3-4%

5 / * Assuming market RevPAR growth covers inflation

Fee based growth Fee based growth 2015* 2015* Cap utilization Cap utilization Asset Management 2-2.5% 2-2.5% 0.5% 0.5%

Interim Results Q1-2012 / April 25, 2012

slide-6
SLIDE 6

BUSINESS DEVELOPMENT

Puneet Chhatwal, Executive Vice President & CDO

Park Inn by Radisson Rosa Khutor, Sochi, Russia

slide-7
SLIDE 7

Development Outlook

  • Investors looking for prime assets with secure income streams
  • Debt financing still constrained, limiting new build development
  • Focus on debt restructuring and conversion opportunities
  • Growth in emerging markets, delays in openings

7 /

Rezidor Update

  • Pipeline to be maintained at 20,000+ rooms (excluding conversions)
  • Focus on Asset and Contract Management
  • Openings delayed due to emerging markets and business model
  • Positive contribution from new openings support strategy

Interim Results Q1-2012 / April 25, 2012

slide-8
SLIDE 8

Fee-based signings in emerging markets

  • Q1 2012 highlights:

– 100% managed, 100% emerging markets – 75% conversions

Radisson Blu Conakry, Guinea SIGNINGS Q1-2012 Q1-2011 Hotels 6 11 Rooms 1,400 2,200

8 /

– 75% conversions

  • 9th consecutive quarter of 100% fee-based signings
  • Entering new markets: Gabon and Guinea

Interim Results Q1-2012 / April 25, 2012

Radisson Blu Resort Tsinandali, Georgia

slide-9
SLIDE 9

Openings in strategic locations

  • Q1 2012 highlights:

– 100% fee-based openings – 2 hotel conversions

OPENINGS Q1-2012 Q1-2011 Hotels 4 6 Rooms 1,000 1,400 Park Inn by Radisson Rosa Khutor, Russia

9 /

– 2 hotel conversions

  • Key locations: Istanbul, Sochi, Libreville (Gabon)
  • 2 hotels went offline (143 rooms)

Radisson Blu Mersin, Turkey Russia

Interim Results Q1-2012 / April 25, 2012

slide-10
SLIDE 10

Selected Openings 2012

Emerging Markets Rooms Park Inn Donetsk, Ukraine 175 Park Inn Tete, Mozambique 116 Park Inn Budapest, Hungary 136 Radisson Blu Doha, Qatar 583 Mature Markets Rooms Radisson Blu Uppsala, Sweden 176 Radisson Blu Resort Gran Canaria, Spain 231 Radisson Blu Resort & Spa Corsica, France 170

10 / Interim Results Q1-2012 / April 25, 2012

Radisson Blu Maputo, Mozambique 152 Radisson Blu Lusaka, Zambia 142 Radisson Blu Bukovel, Ukraine 252 Radisson Blu Nantes, France 142 Park Inn Lille Grand Stade, France 127 Park Inn Wembley, UK 235

  • Balanced growth across the markets
slide-11
SLIDE 11

Understanding the Pipeline

  • 21,700 rooms under development
  • 60% under construction / site

clearance

  • Estimated wash-out 15%

4,000 5,000 6,000 7,000 8,000

Rooms Under Development

11 / Interim Results Q1-2012 / April 25, 2012

  • Estimated wash-out 15%
  • Delays in openings likely for

another 15% of pipeline

  • Further openings through

conversions

1,000 2,000 3,000 4,000

2012 2013 2014 2015

Conceptual stage/pre-planning Under Construction/site clearance

slide-12
SLIDE 12

Largest upscale hotel brand in Europe

Number of Hotels Number of Hotels Number of Rooms Number of Rooms

183 146 93 75

80 100 120 140 160 180 200

42,400 37,500 21,800 17,200 15,000

20,000 25,000 30,000 35,000 40,000 45,000 12 / Interim Results Q1-2012 / April 25, 2012 75 52 24 20

20 40 60 80 Hilton Marriott Crowne Plaza Sheraton Sofitel InterContinental

15,000 7,300 4,800

5,000 10,000 15,000 Hilton Marriott Crowne Plaza Sheraton InterContinental Sofitel SOURCE I MKG Hospitality Database I December 2011 (In Operation)

slide-13
SLIDE 13

FINANCIAL UPDATE

Knut Kleiven, Deputy President & CFO Radisson Blu Hotel , Mersin, Turkey

slide-14
SLIDE 14

Q1 is always the weakest quarter

  • 5

5 15 25 35

EBITDA, MEUR

14 /

  • 15
  • 5

03 04 05 06 07 08 09 10 11 12 03 04 05 06 07 08 09 10 11 03 04 05 06 07 08 09 10 11 03 04 05 06 07 08 09 10 11

  • RevPAR is expected to benefit from low growth in room supply but

macroeconomic uncertainties remain

Interim Results Q1-2011 / April 22, 2012

slide-15
SLIDE 15

L/L RevPAR growth 5.6%; driven by occupancy

15 /

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Interim Results Q1-2011 / April 22, 2012

slide-16
SLIDE 16

RevPAR growth continued, led by Eastern Europe

NO Q1 L/L RevPAR: 1.7% Occupancy: 1.2% ARR: 0.5% EE Q1 L/L RevPAR: 12.2% Occupancy: 10.0% ARR: 2.0%

NO: Softer development in the Nordics. Denmark was the best performer. EE: Continued strong growth, led by Russia, Poland and the Baltics. ROWE: Good improvements in Belgium, Germany and Ireland. Noteworthy decline in Switzerland.

16 /

5.4% 6.9% 5.6% 0% 2% 4% 6% 8%

L/L RevPAR growth Q/Q

ROWE Q1 L/L RevPAR: 3.1% Occupancy: 3.0% ARR: 0.1% ARR: 2.0% MEAO Q1 L/L RevPAR: 10.8% Occupancy: 11.7% ARR:

  • 0.8%

MEAO: First positive quarter since Q4 2010. Strong growth in South Africa, Saudi Arabia, UAE and Egypt.

Interim Results Q1-2011 / April 22, 2012

slide-17
SLIDE 17

62% 65%

IN MEUR Q1 2012 Q1 2011 Revenue 207 193 EBITDAR 58 53 % EBITDAR Margin 28% 27% EBITDA

  • 5
  • 9
  • 7% revenue growth – driven by RevPAR

growth, RGI gain and strong meetings and events business

  • EBITDA margin up 2 pp supported by:
  • Good revenue flow-through
  • Additional high-margin fee revenue

Good improvement in profitability

17 /

53%

EBITDA

  • 5
  • 9

% EBITDA Margin

  • 2%
  • 4%

EBIT

  • 13
  • 17

% EBIT Margin

  • 6%
  • 9%

Net results

  • 14
  • 17
  • Additional high-margin fee revenue
  • No pre-opening expenses
  • Higher marketing costs (timing effect)
  • EBIT margin also supported by lower

depreciation rate

Interim Results Q1-2012 / April 25, 2012

slide-18
SLIDE 18

Good flow-through

Q1 2012 vs Q1 2011 Reported Change FX Hotel Exits New Hotels Pre-

  • pening

L/L Revenue 14.2 2.9

  • 1.1

1.6 10.8 EBITDAR 5.7 1.0

  • 0.1

1.1 1.1 2.6

18 /

EBITDA 3.4 0.1 0.1 1.1 1.1 1.1 EBIT 4.0 0.0 0.1 1.1 1.1 1.7

  • Negative impact due to timing differences of marketing spend of MEUR 2

Interim Results Q1-2011 / April 22, 2012

slide-19
SLIDE 19

Leased business: improved EBIT margin in the Nordics

Revenue:

  • Nordics: strong meeting and events

business

  • ROWE: modest RevPAR growth

92 89 181 84 86 170 50 100 150 200 MEUR Leased Revenue

19 /

EBIT:

  • Nordics: good flow-through, no pre-
  • pening expenses
  • ROWE: higher travel agent

commissions, increased costs for energy and F&B and timing differences in marketing spend

4.4

  • 11.2
  • 6.8

0.9

  • 12.3
  • 11.4
  • 20
  • 10

10 20 MEUR Leased EBIT

Q1 2012 Q1 2011

Interim Results Q1-2011 / April 22, 2012

slide-20
SLIDE 20

Strong growth in fee business

Revenue:

  • EE and MEAO: strong RevPAR

increase and new hotels

2.4 7.5 6.1 6.0 22.0 2.5 6.9 5.0 4.6 19.0

  • 5

5 15 25 MEUR Fee Revenue

20 /

EBIT:

  • EE: in line with revenue
  • MEAO: EBIT impacted by higher

marketing costs (timing effect)

1.1

  • 0.2

2.8 3.2 6.9 1.6 0.2 2.3 3.2 7.3

  • 1

4 9 14 MEUR Fee EBIT

Q1 2012 Q1 2011

Interim Results Q1-2011 / April 22, 2012

slide-21
SLIDE 21

Liquidity position

MEUR 2012 2011 Cash Flow from Operations

  • 15.5
  • 12.4

Change in Working Capital 3.1

  • 9.3

Investments

  • 8.0
  • 6.8

CapEx

  • 7.4
  • 8.0

Other

  • 0.6

1.2

21 /

Other

  • 0.6

1.2 Free Cash Flow

  • 20.4
  • 28.5
  • Settlement of higher current tax liabilities
  • Ongoing focus on Working Capital and positive effect of settlements in H1-2011
  • Available overdrafts and cash MEUR 86

Interim Results Q1-2011 / April 22, 2012

slide-22
SLIDE 22

EBITDA MARGIN UPLIFT FOCUS AREAS

  • Revenue initiatives
  • Cost savings

OUR FINANCIAL TARGETS

Profitability Target EBITDA margin of 12% over a business cycle Balance Sheet Small positive average net cash position

6-8%

Rezidor’s Initiatives Margin expansion in Q1 reflects Route 2015 initiatives

22 /

  • Fee based room

growth

  • Asset management /

deleveraging position Dividend Policy Approximately one third of annual after- tax income to be distributed to shareholders

+ Market Recovery over and above inflation + Asset Management

* Assuming market RevPAR growth covers inflation

Interim Results Q1-2012 / April 25, 2012

slide-23
SLIDE 23

Q&A

23 /

Hotel Missoni Kuwait