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BIEN-ÊTRE ET PERFORMANCE
Accor Services Brazil: 2008 Key Figures
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INVESTOR DAY ACCOR SERVICES BRAZIL Accor Services Brazil: 2008 - - PowerPoint PPT Presentation
INVESTOR DAY ACCOR SERVICES BRAZIL Accor Services Brazil: 2008 - - PowerPoint PPT Presentation
BIEN-TRE ET PERFORMANCE INVESTOR DAY ACCOR SERVICES BRAZIL Accor Services Brazil: 2008 Key Figures ! "# $ %&
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BIEN-ÊTRE ET PERFORMANCE
Focus on Brazil
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8.5 million km2 (5th global ranking) 190 million inhabitants (5th global ranking ) 2007 GDP : € 760Bn (11th global ranking) Constant Innovation : 100% electronic elections more than 90% of pensions paid by cards Global blue chips :
Key Figures
10.0% 13.3% 3.1% 3.7% 2006 8.3% 14.7% 6.2% 5.1% 2008 2009 2007 8.4% 9.3% Unemployment rate 13.5% 11.3% Interest rate 5.0% 4;5% Inflation 3.5% 5.4% GDP growth
Brazil: Socio-economic factors
2ème plus grande mine du monde 4ème constructeur d’avions commerciaux 1er brasserie en volume 1èr sur l’extraction de pétrole en eaux profondes
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Population Profile
Multiracial and Multicultural Unique language Young (29% between 15/29 year-old) and
dynamic
Optimist: future oriented Ready for changes Important social contrasts
Brazil: Socio-economic factors
Lots of changes
Increased purchasing power Less poverty Job creation over 1,4 Million in
H1 2008
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Solid foundations
- The “PAT Law” is a state program since
1976
- Market size: around 80% of the
economically active population still to develop
A dynamic market
- SMB expansion
- Technological innovation
Paper Card Mobile ...
- Growth of regional players
TR/TA Market Evolution in Brazil
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Brazilian Population 184 M inhabitants
Unemployment rate* 6.9 MM (7.4%) Informal Market* 49.7 MM (53.4%)
Penetrated** TR/TA Formal Market
10.1 MM - 15M end users (10.9%)
Potential Formal Market 26.3 MM (28.3%)
Economically Active Population 93 MM (50,5%)
Ticket restaurant /Food voucher Market
Source: (*) IBGE - PNAD 2007 (**) PAT – MTE 2008 : % over economically active population 12
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BIEN-ÊTRE ET PERFORMANCE
From Paper to Cards: Successful Migration
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1st SMART card in Brazil
1992
(pioneer)
1993 2006
SGC
Pioneer in internalizing the electronic card authorization and processing
1994
Eletronic Version (pioneer)
1976
PAT Creation (pioneer)
1990
(pioneer)
1987 2007
Recycled paper version (pioneer)
2003
Electronic Version (pioneer)
1st Electronic Card for the PAT Market
1998
Electronic Version (pioneer)
1st Web distribution channel for SMB
2004
Express Channel (pioneer) AmLat Authorization Platform for electronic cards
Brazil: the pioneer country in electronic card migration
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- 500
1.000 1.500 2.000 2.500 2003 2004 2005 2006 2007 2008e Paper Card
Accor Services Brazil: From Paper to Electronic Card
55% 82%
€ TR/TA/TC/TT Issued Volume ( Million)
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0.88% 1.00%
Commercial & Mkt.
44.6%
3.07% 0.32% 0.17% 0.25%
5.52
0.80%
100% 2007 Electronic
26.6%
3.63% 0.25% 0.13% 0.24%
4.94%
1.50%
100% 2002 Paper
Finance IT Other costs
Revenues
Production
Ebitdar
(% from Revenue)
Direction
Issued Volume € Millions
+18 points improvement in Ebitdar Margin Accor Services Brazil:
Technological Impact on EBITDAR for TA
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WATTS Platform to be shared throughout Latin America: some marginal improvement to come
Worldwide card competency center located in
Latin America (Brazil)
Possibility to use the same parameters
through WATTS :
Product : structure (on/offline), password (yes/no/flex); Operation : activation / blockage rules; Pricing : card price and variable fees; Acceptance: transactions and cancellation limits, time to
purge, affiliate contract mgmt.
Migration Plan 2008/2010
Brazil: 2.5 million cards Hispanic America: 1.5 million cards
Brazil Venezuela Chile Mexico
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BIEN-ÊTRE ET PERFORMANCE
Competitive landscape in Brazil
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2000’s 90’s 80’s 70’s
A highly competitive market
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- Key figures (2008)
Issued Volume: €1.5 billion 30.000 Clients
- 10;000 points of sales (bank branches)
- 90% outsourced operations
- Very aggressive initial commercial activity
- Strong financial counter-offer
- Starting Point: 500.000 users
Yearly net balance in Issue Volume between Ticket and Visa Vale 2003 2004 2005 2006 2007 2008
(Jan-Aug)
65m (4.8% Issue Volume) 41m 10m 21m 12 MM 22 MM
€ € € € € €
A new major entrant in 2002: Visa Vale
Source: Governmental bidding/ Newspapers / Accor Services Brazil 9
Accor Services outperforming Visa Vale since 2007
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1 1º º 38% 38% 2 2º º 21% 21% 3 3º º 19% 19% 4 4º º 15% 15% Others 7% 7%
2005 2005
1 1º º 38% 38% 2 2º º 34% 34% 3 3º º 20% 20% Others 8%
2008 2008 Consolidation of a fragmented market
- 3 players represent 92% of market
share
- Ticket maintains its leadership
- More than 60 regional players
represent 8% of the market share
- 4 players represent 93% of
market share
- 40 regional players with 7% of
market share
36%
Source: Labor Ministry / Governmental bidding/ Newspapers / Accor Services Brazil 10
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BIEN-ÊTRE ET PERFORMANCE
Accor Services in Brazil
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TRANSACTIONAL CONSULTANCY BENEFITS REWARDS & LOYALTY EXPENSE MGMT
(Rewarding) (Incentives & Loyalty)
Accor Services Brazil:
Strong Potential Market for all Families of Products
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TRANSACTIONAL CONSULTANCY BENEFITS REWARDS & LOYALTY EXPENSE MGMT
(Rewarding) (Incentives & Loyalty)
2008 Market Size: €6.2 Billion Annual Growth: 10%
LEADER
2008 Market Size: €0.5 Billion Annual Growth: 12%
COMPLEMENTARY OFFER
(Rewarding) (Incentives & Loyalty)
2008 Market Size: €1.4 Billion Annual Growth: 15%
NEW POSITIONING
2008 Market Size: €2.3 Billions Annual Growth: 10%
LEADER
Accor Services Brazil:
Strong Potential Market for all Families of Products
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BIEN-ÊTRE ET PERFORMANCE
Conclusion
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Key Learnings for Accor Services
The basis of success stands in our
commercial force
Quality of our sales team Confidence of our customers and affiliated
network
Alternative distribution channels
The quality of our people makes the
difference
Talents retention policy Accor was elected 11 times one of the
Best Companies to Work for (Great Place to Work Institute)
Strategic Mgmt: Balanced Score Card
The constant concern of innovation
positions us always one step ahead
Management, Technology and Product
Our leading position forces us to remain the best
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Conclusion on the Brazilian Market
Largest market in the world
~ €7,5 Billion of business volume ~ 15 M end users > 60 competitors Annual growth: 10% ~ 12%
High growth potential market
Organic growth External growth
Innovation
New technologies New products New services
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BIEN-ÊTRE ET PERFORMANCE