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

1 / Corporate Presentation Q1 2014

Carlson Rezidor Hotel Group 665 hotels 189 hotels 430 hotels 76,000 rooms 32,000 rooms 95,000 rooms THE AMERICAS ASIA PACIFIC EMEA 2 /

Creation of the Carlson Rezidor Hotel Group: A strategic, global partnership refined to exploit synergies Key Objectives Establish clear, compelling positioning for each brand Deliver the brand promises Accelerate global development Win the revenue battle Build a global team and organisation 3 /

One of the world’s ten largest hotel groups No 10 worldwide No 5 in Europe 2013 2013 2013 2013 RANK COMPANY RANK COMPANY HOTELS ROOMS HOTELS ROOMS 1 INTERCONTINENTAL 4,602 676,000 1 ACCOR 2,396 258,000 2 HILTON 3,992 652,000 2 BEST WESTERN 1,312 90,600 3 MARRIOTT 3,672 639,000 3 INTERCONTINENTAL 574 89,200 4 WYNDHAM 7,342 627,000 4 GROUPE DU LOUVRE (*) 974 70,400 5 CARLSON REZIDOR (**) 255 51,800 5 CHOICE 6,198 497,000 6 ACCOR 3,515 450,000 6 NH HOTELES 347 50,800 7 STARWOOD 1,121 328,000 7 WHITBREAD 641 50,700 8 BEST WESTERN 4,024 312,000 8 HILTON 205 46,600 9 HOME INNS 1,772 214,000 9 MELIA 195 44,700 10 CARLSON REZIDOR 1,077 166,000 10 MARRIOTT 245 44,600 SOURCE I MKG Hospitality 2013 (*) Louvre Hotels Group + Concorde Hotels (**) Rezidor + Park Plaza + Radisson Edwardian 4 /

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Publicly listed on Stockholm Stock Exchange since 2006 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) 2 new brands: Quorvus Collection (luxury), Radisson Red (lifestyle select) Member of the Carlson Rezidor Hotel Group, one of the world's ten largest hotel groups

Our Mission We provide unique “Yes I Can!” service It’s about It’s our way of positive life! attitude! It’s about competence It’s personal ! and empowerment!

Our Vision We will be recognised as: • Building • Leading the industry outstanding guest in anticipating trends loyalty by providing and responding to The most memorable changing customer The most innovative and experiences needs passionate team of responsible • Committing to • Caring for our planet hoteliers organisation attracting, and acting in a developing and sustainable way retaining talent • Operating • Delivering distinctive and consistent and market leading compelling financial brands The preferred hotel returns to our The most dynamic owners and company to invest • Being the leader in hotel company in shareholders in and to do the Nordics and EMEA • Valuing strong and Emerging Markets business with long-term relationships with all stakeholders

Our Values They are strong and differentiate us – which we will further build upon LIVING TRUST FIGHTING Z-PIRIT BEING HOST Always entrepreneurial, Earn trust through honesty Be professional, responsible, innovative and opportunity driven and integrity, empower focused on qualitative service and - quick decision making. employees at all levels. We provide memorable experiences. promise, we deliver results.

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

Our global brand architecture AVERAGE DAILY RATE LUXURY UPPER UPSCALE UPSCALE UPPER MIDSCALE MIDSCALE ECONOMY LIMITED SELECT FULL SERVICE SERVICE SERVICE 15

Our brands in EMEA Quorvus Collection – our collection of 5* hotels • Unique identity, personality and story • Development mainly by conversion LUXURY Radisson Blu – our core brand • Iconic, stylish and sophisticated • New-built and conversions in major cities and high end markets UPPER UPSCALE LIFESTYLE SELECT Radisson Red – our new offer (UPSCALE) • The Millennial Lifestyle • Mainly new constructions in main cities and/or secondary markets MIDSCALE Park Inn by Radisson - our core brand • Mastering the essentials, uncomplicated, vibrant, friendly and fresh • Focused on conversions

Radisson Blu is Europe’s largest upper-upscale hotel brand Number of Hotels Number of Rooms 200 50,000 188 43,900 180 45,000 40,000 160 37,300 146 35,000 140 30,000 120 25,000 100 21,200 87 20,000 80 71 16,400 15,400 55 15,000 60 10,000 40 5,000 20 0 0 Marriott Hilton Crowne Plaza Sheraton Marriott Hilton Crowne Plaza Sheraton SOURCE / MKG Hospitality Database / March 2013 (In Operation) 17 /

Our growing portfolio In Operation Total Portfolio Pipeline YTD 2014 YTD 2014 YTD 2014 20% 19% 7% 24% 23% 53% 61% 93% Management Lease Franchise 1% 1% 30% 28% 38% 62% 69% 71% Unbranded 427 Hotels 340 Hotels 87 Hotels 94,475 rooms 76,073 rooms 18,402 rooms

An award-winning Responsible Business Programme • Our Scandinavian DNA 3 Pillars of Responsible Business • 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 Health, Safety & Reduced Respect for social Security for guests environmental and ethical issues Latest initiative: and employees impact within the company Think Planet – targeting 25% energy consumption reduction by 2016

FINANCIAL PERFORMANCE Q1 2014 20 /

Q1 results ahead of last year but negatively impacted by FX RevPAR +5.0% • L/L RevPAR growth of 5.0%, driven mainly by room rates (L/L) • FX , due to the strengthening of the Euro, had negative impact on RevPAR, revenue and results € -0.8m EBITDA • Revenue up 2.1% due to two new leases in Copenhagen and timing of Easter + € 2m • The first quarter is seasonally the weakest of the year -0.4% • EBITDA margin up 1.0pp to -0.4%, positively impacted by Easter EBITDA Margin +1.0pp • EBIT margin up 0.8pp to -4.0% • Concluded another asset management transaction in January € -8.5m EBIT + € 1.5m

Underlying RevPAR trends remain positive primarily driven by room rates L/L Occupancy L/L Average Room Rate L/L RevPAR 10% 8% 6.5% 5.9% 5.7% 6.0% 5.9% 5.6% 5.4% 6% 5.0% 4.6% 4.2% 3.2% 4% 3.0% 2.3% 2% 0% Q3 Q4 Q1 -2% Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2011 2012 2013 • 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

All four regions reported L/L RevPAR growth over last year. Strongest development in the Middle East & Africa NORDICS REST OF WESTERN EUROPE L/L Occupancy L/L Average Room Rate L/L RevPAR L/L Occupancy L/L Average Room Rate L/L RevPAR 25% 25% 15% 15% 8.8% 3.4% 5.5% 4.5% 4.4% 4.2% 1.2% 4.8% 0.7% 3.8% 2.0% 3.6% 5% 2.3% 5% 2.2% 0.8% 1.8% -5% -5% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2013 2014 2012 2013 2014 EASTERN EUROPE MIDDLE EAST & AFRICA L/L Occupancy L/L Average Room Rate L/L RevPAR L/L Occupancy L/L Average Room Rate L/L RevPAR 25% 25% 20.5% 17.1% 13.0% 13.5% 15% 15% 8.9% 11.9% 7.9% 7.8% 6.4% 8.9% 4.6% 6.2% 6.1% 5.7% 4.0% 5% 1.2% 5% -5% -5% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2013 2014 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