Q1-2013 Results Wolfgang M. Neumann, President & CEO Knut - - PowerPoint PPT Presentation

Q1-2013 Results

Wolfgang M. Neumann, President & CEO Knut Kleiven, Deputy President & CFO April 24, Stockholm

+2.5

MEUR EBIT

+1 p.p.

EBITDA Margin

Rezidor Q1 2013 Highlights

• L/L RevPAR up by 5.7%—prior to March 22 (beginning of

Easter holiday) up by 9%

• Six consecutive quarters of increased market share (3.3% YTD)
• Revenue flat, due to conversion of nine hotels (1,100 rooms)

from leases to fee-based agreements and lower RevPAR growth in Nordics and ROWE

• 13.6% growth in fee revenue
• EBITDA Margin increased by 1 percentage point
• 2.5 MEUR EBIT improvement, despite Easter and non-Leap

Year impact of negative 4-5 MEUR

• 4.2 MEUR improvement in Free Cash Flow

+3.3%

market share

+5.7%

L/L RevPAR

2 / Q1-2013 Interim Results / 24 April 2013 / Stockholm

Q1 is always the weakest quarter, but Q1 2013 EBITDA was the best since 2008

• 20
• 10

10 20 30 40 EBITDA (MEUR)

08 09 10 11 12 13 08 09 10 11 12 08 09 10 11 12 08 09 10 11 12

3 / Q1-2013 Interim Results / 24 April 2013 / Stockholm

Substantial occupancy growth for 5 consecutive quarters

• 0.1%

6.8% 12.6% 6.9% 6.5% 3.0% 2.3% 3.2% 5.6% 5.9% 4.6% 4.2% 5.7%

• 10%
• 5%

0% 5% 10% 15% L/L Occupancy L/L Average Room Rate L/L RevPAR

4 / Q1-2013 Interim Results / 24 April 2013 / Stockholm

8.6% 10.7% 4.4% 1.5% 3.1% 2.0% 3.6% 2.2% 1.2%

• 5%

0% 5% 10% 15% 20%

L/L Occupancy L/L Average Room Rate

Occupancy rise across all regions; rates softening in ROWE, Nordics due to Easter effect

• 6.1%
• 27.8%
• 12.8%
• 4.2%

10.8% 17.1% 13.0% 7.9% 20.5%

• 30%
• 20%
• 10%

0% 10% 20% 30%

L/L Occupancy L/L Average Room Rate L/L RevPAR 10.0% 2.4%

• 1.2%

2.3% 1.7% 1.8% 0.8% 3.4% 0.7%

• 5%

0% 5% 10% 15% 20%

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

11.5% 19.1% 15.3% 17.3% 12.2% 11.9% 6.1% 5.7% 4.0%

• 5%

0% 5% 10% 15% 20%

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

NORDICS

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013

EASTERN EUROPE REST OF WESTERN EUROPE MIDDLE EAST & AFRICA

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 5 / Q1-2013 Interim Results / 24 April 2013 / Stockholm

Q1-2013 Signings in line with last year, and focused

• n Emerging Markets

Summary:

• Expanding Park Inn in important emerging

markets of Turkey, Ukraine and Russia

• Prominent new Radisson Blu Hotels in Port

Harcourt, Nigeria and at Sheremetyevo Airport, Moscow

• Asset Management: Extended two

margin-enhancing leases in ROWE

SIGNINGS Q1-2013 Q1-2012 Hotels 5 6 Rooms 1,100 1,400

>75% Eastern Europe 100%

Management Contracts

>50% Radisson Blu

Radisson Blu Sheremetyevo Airport Moscow, Russia Radisson Blu Port Harcourt, Nigeria

6 / Q1-2013 Interim Results / 24 April 2013 / Stockholm

Brand-enhancing openings in key markets

Summary:

• Expansion in Emerging Markets: Radisson

Blu Maputo and Radisson Blu Rosa Khutor, Russia (Sochi)

• Balanced by growth in Mature Markets:

Park Inn Amsterdam Airport Schiphol, Radisson Blu in Dortmund, Germany and Gothenburg, Sweden

• Offline hotels mainly under-performing

management agreements

65% Mature Markets 50% Managed 85% Radisson Blu

OPENINGS Q1-2013 Q1-2012 Hotels 5 4 Rooms 1,000 1,000 Rooms Offline 750 150 Net openings 250 850

Radisson Blu Maputo, Mozambique Park Inn Amsterdam Airport Schiphol, Netherlands

7 / Q1-2013 Interim Results / 24 April 2013 / Stockholm

Shifting to Asset Light: Rooms in Operation

• No new leased hotels signed since 2009
• 11 leases, 1,300 rooms terminated since 2011
• Since 2011: 80% of room signings in emerging markets, where fee-based

agreements are standard

END 2006 END 2009 Q1-2013

26% 26% 31%

Franchised Managed Leased

23% 50%

Franchised Managed Leased

24% 54% 22%

Franchised Managed Leased

8 / Q1-2013 Interim Results / 24 April 2013 / Stockholm

Second largest pipeline in Africa

1,000 2,000 3,000 4,000 5,000 6,000 7,000

Accor Hilton IHG Marriott Movenpick Starwood Kempinski Louvre African Sun

Source / W Hospitality 2012 / Number of Rooms in Pipeline

Sub-Saharan Africa

• Operations: 15 Hotels / 3,000 Rooms
• Pipeline:

22 Hotels / 4,000 Rooms

9 / Q1-2013 Interim Results / 24 April 2013 / Stockholm

26 Hotels

Rooms in Pipeline

Dominant position in Russia, CIS & Baltics

2,000 4,000 6,000 8,000 10,000 12,000 14,000

IHG Marriott Accor Hyatt Wyndham Starwood Sokos Kempinski Hilton

Russia Other CIS Baltics

Russia

• Operations: 22 Hotels / 6,900 Rooms
• Pipeline:

21 Hotels / 5,100 Rooms

Source / Respective group websites / December 2012 / Number of Rooms in Operation

Rooms in Operation

45 Hotels

10 / Q1-2013 Interim Results / 24 April 2013 / Stockholm

Financial Update

Knut Kleiven, Deputy President & CFO

Despite RevPAR growth, revenue flat due to:

• 9 leases converted to fee-based

agreements

• Slower growth in lease-heavy Nordic and

ROWE markets

• Strengthening of Euro
• Easter and leap year effect (-9.0)

EBIT positively affected by:

• Exit from unprofitable leases (+2.0)
• Central cost reduction (+1.1)
• Reduced central advertising and sales

spend (+1.9)

EBIT negatively affected by:

• Easter (-3.5)
• Leap year 2012 (-1.0)

Free cash flow improved by 4.2 MEUR

Income Statement Margin improvement despite flat revenue

IN MEUR Q1-2013 Q1-2012 Revenue

207.1 206.9

EBITDAR

58.7 58.4

EBITDAR Margin %

28.3% 28.2%

EBITDA

• 2.8
• 5.0

EBITDA Margin %

• 1.4%
• 2.4%

EBIT

• 10.0
• 12.5

EBIT Margin %

• 4.8%
• 6.0%

NET RESULTS

• 11.2
• 14.1

12 / Q1-2013 Interim Results / 24 April 2013 / Stockholm

Flow-through Q1 2013 vs Q1 2012 Strong impact from asset management and new hotels

Q1-2013 vs Q1-2012 Reported Change FX Hotel Exits New Hotels One-offs L/L Revenue 0.2 1.2

• 5.0

3.4 0.0 0.6 EBITDAR 0.2 0.4 0.0 1.1 0.0

• 1.5

EBITDA 2.2 0.3 1.6 1.1 0.0

• 0.8

EBIT 2.5 0.2 1.6 1.1 0.0

• 0.4

13 / Q1-2013 Interim Results / 24 April 2013 / Stockholm

Nordics:

• Easter EBITDA impact estimated at 2-

3 MEUR

• Positive result in Norway offset by

softening markets in Sweden and renovation displacement

• 2 leased hotels converted to

franchises

Q1 Leased business Reduced revenue and EBIT due to exits and Easter impact

Rest of Western Europe:

• Revenue drop from 7 leases converted

to management

• Improvement across all countries,

except Switzerland and Belgium

• Positive EBIT impact from exits

50 100 150 200 NO ROWE Total

Leased Revenue MEUR

Q1 2013 Q1 2012

• 12
• 10
• 8
• 6
• 4
• 2

2 4 6 NO ROWE Total

EBIT MEUR

Q1 2013 Q1 2012

14 / Q1-2013 Interim Results / 24 April 2013 / Stockholm

Eastern Europe:

• Revenue up due to strong RevPAR

growth and new hotels

• Strong growth in Baltics with 12%

RevPAR increase

• EBIT slightly below last year due to

provisions for bad debt

Q1 Fee business Emerging markets continue to drive the growth

Middle East, Africa & Others:

• 21% L/L RevPAR growth led to 22%

improvement in fee revenue

• Strongest performing region, with

significant growth in South Africa, UAE and Saudi Arabia

• 41% EBITDA improvement

5 10 15 20 25 30 NO ROWE EE MEAO Total

Fee Revenue MEUR

Q1 2013 Q1 2012

• 2

2 4 6 8 10 12 NO ROWE EE MEAO Total

EBIT MEUR

Q1 2013 Q1 2012

15 / Q1-2013 Interim Results / 24 April 2013 / Stockholm

Investors Day 2013

• Date:

June 5, 2013

• Venue:

Radisson Blu Waterfront Hotel, Stockholm

• Programme:

— 08:00 Breakfast Behind the Scenes — 09:00 Presentations: − Wolfgang M. Neumann President & Chief Executive Officer − Russell Kett Chairman – HVS London − Elie Younes SVP & Head of Group Development − Eric de Neef SVP Marketing and Customer Relationship Management, Global Branding Park Inn − Olivier Harnisch EVP & Chief Operational Officer − Knut Kleiven Deputy President & Chief Financial Officer — 13:00 Lunch — 14:00...One-on-one meetings with the management team

16 / Q1-2013 Interim Results / 24 April 2013 / Stockholm

Q&A