CORPORATE PRESENTATION NOVEMBER 2016

Transcription

1 CORPORATE PRESENTATION NOVEMBER 2016

2 ABOUT REZIDOR

3 COUNTRIES From a small Scandinavian group to a leading international player ,000+ HOTELS IN 80+ OPERATION COLLEAGUES 80,000+ ROOMS IN OPERATION 110+ HOTELS UNDER DEVELOPMENT 150 NATIONALITIES 3

4 A member of the Carlson Rezidor Hotel Group Together we deliver more! Our global footprint encompasses almost 1,400+ hotels with 225,000+ rooms Carlson Rezidor collaboration framework: Master Franchise Agreement for EMEA Carlson is Rezidor s majority shareholder* Both groups pursue a strategic partnership focusing on global revenue generation and branding AMERICAS 711 HOTELS 81,216 ROOMS EMEA 504 HOTELS 112,184 ROOMS* ASIA PACIFIC 196 HOTELS 31,770 ROOMS *EMEA numbers include Rezidor, Edwardian Group and PPHE * In April 2016, the planned acquisition of Carlson hotels by HNA was announced 4

5 Travel & tourism remains a strong and resilient sector Growing faster than the world economy International arrivals up 4.4% Travel & Tourism contribution to global GDP is 10.0% 1in 11 jobs Worldwide is in travel & tourism Global aircraft fleet will double over the next 20 years Low oil price stimulates economy and travel & tourism US economy is still strong with solid Job market Demand growth outpaces supply growth in most markets SOURCE: UNWTO BAROMETER

6 Travel & tourism is impacted by economic and geopolitical challenges Eurozone is patchy and slow in recovery Refugee crises challenges German powerhouse and EU unity Brexit question overshadows weakening UK economy Declining oil price puts major pressure on Norway, Saudi Arabia, Nigeria US Elections Weak global outlook Youth unemployment and social tensions Situation in Russia somewhat stabilizes, but remains fragile Negative messages coming from some emerging markets Terror threats and uncertainty continue to impact our life 6

7 WHY DO BUSINESS WITH REZIDOR?

8 WE ARE GROWING Adding scale, creating more brand awareness Reaching new source markets and customers 8

9 2016(Q3) > 33 HOTELS WITH 6,400 ROOM SIGNED 14 HOTELS WITH 2,700 ROOMS OPENED 9

10 Asset-light and sustainable growth with a focus on emerging markets Total Portfolio 2016 (Q3): 474 Hotels, 103,984 Rooms in operation and pipeline Others. 3% Franchised. 26% Leased. 14% Park Inn by Radisson. 33% Middle East, Africa & Others. 30% Nordics. 13% Radisson Blu. 64% Managed. 60% Eastern Europe. 26% Western Europe. 31% 10

11 2015 milestones: 100,000 rooms in 180 countries REZIDOR: LEADING PIPELINE ON AFRICAN CONTINENT # OF ROOMS 5,000 4,000 3,000 2,000 1,000 0 CARLSON REZIDOR HILTON MARRIOTT STARWOOD ACCOR MANGALIS BEST MOVENPICK KEMPINSKI WESTERN REZIDOR: LARGEST INTERNATIONAL HOTEL OPERATOR IN RUSSIA/CIS & BALTICS # OF ROOMS 16,000 14,000 12,000 10,000 8,000 Russia Other CIS Baltic s 6,000 4,000 2,000 0 CARLSON REZIDOR MARRIOTT ACCOR IHG HILTON STARWOOD WYNDHAM RIXOS HYATT SOKOS Source: MKG 2015 ranking, W Hospitality 2015 ranking, Company websites 11

12 2016 New Signings & Openings (Q3) Strong development momentum continues SIGNINGS Q Q YTD 2016 YTD 2015 OPENINGS Q Q YTD 2016 YTD 2015 Hotels Rooms 1,900 2,300 6,400 7,100 Hotels Rooms 300 1,300 2,700 2,800 Entering the Angolan market with Park Inn Portfolio of 5 hotels across key markets All under construction due to open within months Continuous strong momentum in Middle East: Multi-property deal in UAE (2 Radisson Blu in Dubai, 1 Park Inn in Ras al Khaimah) 2 hotels due to open in H (semi-conversions) Entering our 82nd country: Kyrgyzstan Purely asset-light growth (managed) New flagship in Africa: Radisson Blu Hotel & Convention Centre, Kigali, Rwanda Adjacent to Convention Center of 53,000m² Radisson Blu Lyon reopening on budget and as per schedule 1 st October exits resulting in net growth of -223 rooms in Q3 12

13 WE ARE INVESTING IN OUR BRANDS & PRODUCTS Growing the appeal of our network through vibrant brands and innovative products 13

14 A compelling and focused brand architecture Ranging from economy to luxury Luxury Quorvus Collection our collection of luxury hotels Upper Upscale Radisson Blu our upper-upscale full-service brand Upscale Radisson RED our lifestyle select brand Midscale Park Inn by Radisson our mid-scale brand Budget prizeotel our new economy brand 14

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16 FOCUS 2016 B L U P R I N T A NEW DESIGN SCHEME FROM CONVENTIONAL TO FORWARD THINKING

17 BRUSSELS GLASGOW CAPE TOWN DUBAI JEDDAH VILNIUS

18 Focus 2016 Yes I Can! /The Park Inn Smile Family Focus Adding Color to Lives RB program: Youth at Risk Launch of the newwebsite

19 THE ECONOMY SEGMENT Resilience t o economic cycles Increasing demand Value for money Real estate e f c i e n c y A business of scale Design: Karim Rashid < 50,000 per key 16 sqm rooms Construction solution Leased and managed Focus on Germany & Benelux

20 WE ARE INVESTING IN OUR PEOPLE Attracting and retaining top talent as an employer of choice 20

21 Investment in our talent Rezidor s Performance Management Culture is embraced at all levels Assessment Development Centers Performance Management System Competency Based Interview Guide TALENT MANAGEMENT Leadership & Management development programmes Three Rezidor Profiles Talent Review & Succession Management Process Performance Management Process 21

22 Targeted people development initiatives to attract, retain and grow the best talent Rezidor s Employee Loyalty Score is constantly rising and at industry-leading level (in average 6 points above average score of other sectors) Source: Rezidor Climate Analysis 2015 The Group s Employee Value Proposition focuses on diversity & inclusion. The Balanced Leadership program targets 22% female leaders by the end of

23 WE DRIVE REVENUES Total revenue focus and reshaping the RevGen engine to increase systems contribution 23

24 Strategic revenue initiatives deliver fourth consecutive year of RGI growth Rezidor s 2015 absolute RGI reaches Rezidor Park Inn Radisson Blu % +1.1% +1.6% +2.0% +1.6% +0.6% - 0.1% +0.8% % % % Hotels w. RGI data +2.3 % RGI > 100% 60.5% 60.5% 65.6% 61.1% Gaining RGI 54.3% 64.3% 52.3% 52.9% 24

25 RevGen project SHERPA: Reshaping Rezidor s RevGen engine To embrace the shifting dynamics of the marketplace Targeting a 55% system contribution in 2016 (system contribution: revenue and room nights via Brand Web, Internet, Voice, GDS and Carlson Rezidor influenced (Sales & Loyalty) hotel direct business) 4 PILLARS UNDERPIN THE TRANSFORMATION AND ARE ENABLED BY A REVISED FUNDING MODEL ONLINE DIRECT MARKETING/LOYALTY SALES ANALYTICS TRANSFORMATION 25

26 WE ARE COST CONCIOUS HOTELIERS Industry-leading operating margins in pursuit of operational excellence and cash flow optimization 26

27 Significant cost reductions in operations Reaching a best-in-class GOP margin of 37.8% in 2015 Productivity gain of 18% in 2015 in hotels that introduced Productivity+ Housekeeping PDQ savings from k until m Significant Think Planet energy savings following investments New Breakfast concept; food waste cover saved 75% & cost per cover 17% Procurement as a key driver to improved profitability Generating 13m savings between 2013 and 2015 In 2015 alone, 5.1m savings 27

28 WE THINK AND ACT RESPONSIBLE A unique and awardwinning sustainability philosophy, differentiating our brands and inspiring our team members 28

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30 WE CREATE A SAFE AND SECURE BUSINESS FOUNDATION Protecting the lives of our guests and employees while safeguarding your assets 30

31 The fundamental importance of safety and security is becoming front of mind SELF- ACTUALIZATION MORALITY. CREATIVITY. SPONTANEITY. ACCEPTANCE. EXPERIENCE PURPOSE MEANING & INNER POTENTIAL. SELF-ESTEEM RESPECT OF OTHERS. CONFIDENCE. ACHIEVEMENT. THE NEED TO BE A UNIQUEINDIVIDUAL. LOVE & BELONGING FRIENDSHIP. FAMILY. INTIMACY. SENSE OF CONNECTION. SAFETY & SECURITY HEALTH. EMPLOYMENT. PROPERTY. FAMILY. SOCIAL ABILITY. PSYCHOLOGICAL NEEDS BREATHING. FOOD. WATER. SHELTER. CLOTHING. SLEEP. And the foundation for a stable, successful and sustainable business 31

32 WE ARE A RELATIONSHIP COMPANY We believe in personal relationships based on trust and transparency - with our people, guests, owners, shareholders & stakeholders 32

33 WE ARE FINANCIALLY SOUND Our debt free balance sheet enables investments and makes us a solid partner 33

34 Strong L/L RevPAR growth, but one-off effects negatively impact results Q financial results at a glance Revenue 251.3m Reported Revenue, down m (-3.9%) 9.1m L/L Revenue increase (+3.5%) Exit of 4 leases (- 7.8m) and unfavourable exchange rates (- 10.4m) EBITDA RevPAR L/L RevPAR 82.1 (+5.3%) ADR (+4.1%) Occupancy 75.1% (+0.9pp) Net profit Continuous focus on improving profitability of leased estate Asset management remains a key contributor to performance improvement 10m cost containment plan launched 29m EBITDA (- 6.8m) 11.5% EBITDA margin (-2.2pp) Incl. 4m restructuring costs 2015 impacted by one-off + 1.7m 14.9m down 3.0m (-16.8%) 5.9% net profit margin Positive income tax impact Cost restructuring & exit of loss-making hotels to support future profitability improvement 34

35 2016 (Q3) 10m cost containment plan launched In response to market uncertainties and to compensate for revenue losses Saving target of 10m p.a. (as of 2017) focussed on overhead costs while fully protecting guest experience at hotels Restructuring cost of 5m ( 4m accounted for in Q3) Procurement: 4m Corporate Support Office: 4.3m Operational Areas: 1.7m Acceleration of purchasing savings Renegotiation of contracts Launch of new global procurement system Reduction of central costs Re-organization of head office functions Further decentralisation and organisational optimisation Additional regional / city synergies Reduction of Area overhead costs Optimisation of sales organisation 35

36 5.3% L/L RevPar increase, on back of a strong Q Rezidor RevPAR development 10% 8% 6% 4% 2% 0% -2% 4.6% 4.2% Q3 Q L/L Occupancy L/L Average Room Rate L/L RevPAR 5.7%6.0% 5.9% 5.4% 5.0% Q1 Q2 Q3 Q4 Q % 2.7% 2.4% 0.9% Q2 Q3 Q4 Q % 8.7% 5.6% 1.0% 4.0% Q2 Q3 Q4 Q1 Q % Q3 Strong performance compared to sector & market performance 3 of 4 regions reported L/L RevPAR growth: Eastern Europe, Nordics and ROWE RGI DEVELOPMENT 0.6% RGI growth YTD (Aug) 1.5% Leased RGI growth YTD (Aug) 5 th year of consecutive gain in market share NOTE: Like-for-like: same hotels in operation during same period last year compared at constant exchange rates 36

37 Good underlying trading but results negatively impacted by strengthening of Euro and one-offs Q Income Statement In m Q vs LY LFL RevPAR (L&M) % Revenue EBITDAR EBITDAR Margin % 34.7% -2.7 pp EBITDA EBITDA Margin % 11.5% -2.2 pp EBIT EBIT Margin % 6.5% -2.8 pp NET INCOME Reported Revenue down 3.9% due to Conversion of 3 leases to franchise and exit of 1 lease, whereof 3 as from September 1 Temporary closure of 1 hotel for renovation since 1 st September Negative FX impact of 10.4m due to the strengthening of EUR vs mainly GBP and NOK One-off fee income last year of 1.7m L/L Revenue up 9.1m (3.5%) Rent decreased from 28% to 27.4% of Leased Revenue related to exits and renegotiations of leases EBITDA decreased mainly due to decrease in revenue and redundancy costs of 4.0m. Performance of the eight hotels in Brussels, Nice and Paris impacted by recent terrorist attacks and are 4.3m below last year EBIT down by 8.0m, in addition to lower EBITDA impacted by higher costs for depreciation and impairments, partly offset by lower costs for termination of contracts Net income positively impacted by reduced tax rates 37

38 Challenging trading in some key countries & termination costs impact results YTD Income Statement In m YTD Sept 2016 vs LY LFL RevPAR (L&M) % Revenue EBITDAR EBITDAR Margin % 32.9% -1.3 pp EBITDA EBITDA Margin % 7.8% -1.5 pp EBIT EBIT Margin % 1.9% -2.8 pp NET INCOME Revenue down 3.2% due to Conversion of 3 leases to franchise and exit of 1 lease Negative FX impact of 27.5m from EUR strengthening vs. NOK, GBP, RUB and CHF Temporary closure of 1 hotel for renovation and rebranding during 3.5 months L/L Revenue up 27.6m (3.8%) EBITDA decreased due to performance in Q1 and Q3, impacted by challenging trading in some key countries as well as higher central costs, of which majority due to redundancies FX had a negative impact of ca 2.6m on EBITDA EBIT negatively impacted by termination costs of 10.6m and higher costs for depreciation and impairments of 1.6m, partly offset by gain on sale of shares in subsidiaries of 1.9m Net income positively impacted by reduced tax rates 38

39 Solid L/L development in Q3 Negatively impacted by one-offs, lease exits and unfavorable exchange rates Q vs Q Reported Change FX Hotel Exits New Hotels Change in Central Costs Change in Writedowns Other one-offs L/L Revenue EBITDAR EBITDA EBIT Strengthening of EUR vs mainly GBP ( 8.2m) and NOK ( 1.2m) had negative impact of ca. 4% on revenue. Hotel exits had a negative impact New hotels include Radisson RED Brussels (renovated and re-branded hotel) Central costs include redundancies of 4.0m Other one-offs negatively impacted EBIT by -0.5 (one-off fee income last year of 1.7m offset by termination costs last year of 1.2m) 39

40 Investments of 63.3m carried out during the first 9 months of the year YTD 2016 vs YTD Cash flow before working capital changes Change in working capital Cash flow from operating activities Investments Free Cash Flow Weaker cash flow before working capital due to decrease in EBIT Investments include the acquisition of 49% in prizeotel ( 14.7m). Increase capex spend in the leased business Resulting net cash position is positive ( 3.6m) by the end of the quarter MEUR Sept 30, 2016 Dec 31, 2015 Balance sheet total Net working capital Net cash (net debt) Equity

41 WE ALWAYS PUT THE GUEST CENTRE STAGE Why do we exist? To create memorable moments 41

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