Corporate Presentation Q4 2013 Carlson Rezidor Hotel Group 665 - PowerPoint PPT Presentation

1 / Corporate Presentation Q4 2013

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; 35,000 employees 70+ countries across Europe, the Middle East & Africa 2 strong core brands: Radisson Blu (upper upscale), Park Inn by Radisson (mid-scale) 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 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.

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

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 core brands: Radisson Blu and Park Inn by Radisson UPPER UPSCALE 267 HOTELS 64,400 ROOMS UPSCALE 155 HOTELS 29,200 ROOMS MIDSCALE Hotels and rooms In operation and under development dated Q4 2013

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 /

Profitable, asset-light and sustainable growth – focused on Emerging Markets In operation Under development Total Q4 2013 Q4 2013 Q4 2013 4% 16% 16% 19% 13% 50% 50% 22% 47% Home Emerging Markets 25% Markets 34% 28% 38% 40% NOR RoWE EE MEAO NOR RoWE EE MEAO NOR RoWE EE MEAO 8% 18% 20% 22% 24% 92% 62% 54% Leased Managed Franchised Leased Managed Franchised Leased Managed Franchised 337 hotels 92 hotels 429 hotels 75,300 rooms 19,500 rooms Almost 95,000 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 Q4-2013 20 /

Q4 2013: Continued strong RevPAR growth and margins well above last year RevPAR • L/L RevPAR growth of 5.4%, driven by both occupancy and +5.4% rate (L/L) • Revenue down 1.9% due to strengthening of the Euro and exit of leases in 2012. L/L Revenue was up 4.0% 11% EBITDA Margin +4.4pp • EBITDA margin up 4.4pp to 10.9% • Strict Cost Control and the 2012 exit of unprofitable leases € 26m led to solid conversion of revenue to EBITDA EBITDA + € 10m • EBIT margin up 9.0pp to 5.4% • Four Asset Management deals signed in Q4, and yet another € 13m in January EBIT + € 22m 21

Full Year 2013: Margins well above last year and in line with Route 2015 targets • L/L RevPAR growth of 5.8%, driven mainly by occupancy RevPAR +5.8% (L/L) • Strong growth in Market Share (RGI): up 1.6% • Unchanged Revenue due to the strengthening of the Euro 9% and the exit of leases in 2012. L/L Revenue was up 3.2% EBITDA Margin +3.3pp • Fee Revenue up 11.0% due to a strong underlying performance in the emerging markets € 81m • EBITDA margin up by 3.3pp to 8.8% EBITDA + € 30m • EBIT margin up by 4.9pp to 4.8% € 44m • Cash Flow from operating activities up by MEUR 38.1 EBIT + € 45m 22

Strong Occupancy driven RevPAR growth in 2012 & H1 2013 Average Rate growth increasing in H2 2013 L/L Occupancy L/L Average Room Rate L/L RevPAR 10% 8% 6.5% 5.7% 5.9% 5.9% 6.0% 5.6% 5.4% 6% 4.6% 4.2% 3.0% 4% 3.2% 2.3% 2% 0% -2% L/L Occupancy L/L Room Rates L/L RevPAR Reported RevPAR 2013 68.2% 107.8 73.5 69.2 2012 65.1% 101.7 66.2 67.4 2011 63.9% 102.3 65.4 63.0

Emerging Markets: South Africa, UAE, the Baltics and Poland were driving the RevPAR growth in Q4 2013 REST OF WESTERN EUROPE NORDICS 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% 5.5% 3.4% 4.8% 3.1% 2.3% 1.2% 4.2% 3.8% 0.7% 3.6% 5% 1.8% 5% 2.2% 2.0% 0.8% 1.7% -5% -5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2012 2013 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% 12.2% 10.8% 13.5% 13.0% 15% 15% 11.9% 8.9% 8.9% 7.9% 7.8% 6.2% 6.1% 5.7% 4.0% 1.2% 5% 5% -5% -5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2012 2013

Revenue generating initiatives and synergies with Carlson have powered strong growth in Revenue Generation Index (RGI) 2013 Full Year +2.0% +1.6% +1.6% 64% of hotels RGI growth 69% of hotels RGI growth 63% of hotels RGI growth 25