Corporate Presentation June 2012 About 1,300+ HOTELS
210,000+ ROOMS
80,000 EMPLOYEES
80 COUNTRIES
USD 7 BILLION SYSTEM-WIDE SALES
3 / 3 A Global Footprint HOTELS IN OPERATION AND CONTRACTED PIPELINE
#1 #1 53 640 341 #1 32 36 98 41 26 52
2011 Total = 1,319 2011 Rezidor = 425
4 Top 10 Hotel Company in the World After 2012 Rooms 2012 HOTELS Rank Company
1 InterContinental Hotels Group PLC 658,348 4,480
2 Hilton Worldwide 633,238 3,843
3 Marriott International 617,837 3,537
4 Wyndham Hotel Group 613,126 7,205
5 Choice Hotels International 502,460 6,203
6 Accor 424,367 3,324
7 Starwood Hotels & Resorts 315,346 1,077
8 Best Western 311,598 4,078
9 Home Inns (+Motel 168) 176,562 1,426
10 Carlson Rezidor Hotel Group 165,802 1,077
*SOURCE I MKG Hospitality I May 2012 5 #5 Largest Hotel Company in Europe
Rank Rank Company Hotels 2012 Rooms 2012 Change (%) 2012 2011
1 1 ACCOR 2,343 254,559 3.2%
2 2 BEST WESTERN 1,316 89,743 0.7%
3 3 INTERCONTINENTAL HOTEL GROUP 559 86,780 2.5%
4 4 GROUPE DU LOUVRE (*) 956 67,687 1.5%
5 6 CARLSON REZIDOR HOTEL GROUP (**) 253 51,498 4.6%
6 5 NH HOTELES 356 51,453 0.6%
7 10 WHITBREAD HOTELS & RESTAURANTS 613 45,629 11.4%
8 7 MELIA HOTELS INTERNATIONAL 200 45,140 1.4%
9 9 HILTON WORLDWIDE 184 43,189 4.8%
10 8 TUI HOTELS & RESORTS 161 40,804 -2.0%
(*) Louvre Hotels Group /Concorde Hotels (**) Incorporating Park Plaza and Radisson Edwardian SOURCE I MKG Hospitality I January 2012
6 A Rich Expertise Across Business Models
10% 3% 22% 29%
53% 59% 25% 12% 87%
Franchised Leased/Owned Managed Franchised Leased/Owned Managed Franchised Leased/Owned Managed
*Percentages reflect number of rooms in operation
7 Establish Clear, Compelling Positioning for Each Brand POWERFUL PORTFOLIO OF GLOBAL BRANDS
Luxury ♦
Upper ♦ Upscale
Upscale
Upper ♦ Midscale
Midscale
Economy
Limited Select Full Service Service Service
♦ Rezidor-operated brands in EMEA 8 A Strong Brand Portfolio
Hotels in Operation Contracted Pipeline
421 112 533
484 44 528
127 65 192
43 18 61
2 3 5
0 100 200 300 400 500 600
1,077 Hotels in Operation + 242 Contracted Pipeline = 1,320
9 1. Establish clear, compelling positioning for each brand
2. Operationalise the brand promises
3. Accelerate development
4. Win the revenue battle
5. Build a global team and organisation
10 About Publicly Listed on Stockholm Stock Exchange since 2006
A portfolio of 430 Hotels & 93,000 Rooms
70 countries across Europe, Middle East & Africa
A portfolio of great hotel brands: Hotel Missoni, Radisson Blu and Park Inn by Radisson
Global synergies with Carlson, one of the largest privately held travel companies in the world
12 Our Strengths
A powerful growth story
Industry leading pipeline
Strong operator with a firm grip on bottom line
Heritage of entrepreneurship, approachable and fast movers
Yes I Can! culture
Fresh portfolio, new breed hotels
Continuity of leadership strengthened by new blood
Long-lasting relationship with hotel owners
Relationship with Carlson
13 Our Vision
14 Our Purpose
We are a hospitality company managing hotels, brands and real estate, and providing our guests with unique Yes I Can! experiences. Respect, empowerment and profitable, sustainable growth create value for all our stakeholders.
15 Our Values
16 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
17 18 A Powerful Growth Story 425 hotels 93,000 rooms
3 consecutive years of record breaking growth amidst the downturn
450 Owned Franchised Leased Managed 400 350 300 250 200 150 100 50
0
2011
1996 1999 2002 2005 2008 1994 1995 1997 1998 2000 2001 2003 2004 2006 2007 2009 2010
19 Asset Light Growth in Emerging Markets EBITDA MARGIN IMPACT FROM CURRENT PIPELINE = 2 TO 2.5% PTS POSITIVE IMPACT
TOTAL PORTFOLIO In Operation Pipeline Q1-2012 Q1-2012 Q1-2012
15% 23% 26% 34% 35% 42% 7%
15%
17% 22% 20% 44%
EAST EUROPE EAST EUROPE EAST EUROPE MEAO MEAO MEAO NORDICS NORDICS NORDICS WESTERN EUROPE WESTERN EUROPE WESTERN EUROPE
71,600 rooms 21,600 rooms 93,000+ rooms
20 Largest Upscale Hotel Brand in Europe RADISSON BLU
Number of Hotels Number of Rooms
200 183 45,000 42,400 180 40,000 37,500 160 146 35,000 140 30,000 120 25,000 21,800 100 93 20,000 75 17,200 80 15,000 15,000 60 52 10,000 7,300 40 4,800 24 20 5,000 20 0
0
Hilton
Sofitel
Marriott
Hilton
Sofitel
Sheraton
Marriott
Sheraton
CrownePlaza
InterContinental
CrownePlaza InterContinental
SOURCE I MKG Hospitality Database I December 2011 (In Operation)
21 Leading Hotel Operator in RUSSIA, CIS & THE BALTICS
SOURCE I Company Websites I February 2012
22 Largest Pipeline SUB-SAHARAN AFRICA
Carlson Rezidor 21
Onomo 13
Accor 11
Protea Hotels 9
Marriott 7
IHG 7
Hilton 7
Azalai 7
Lonrho 6
Mantis 6 SOURCE I W Hospitality I May 2012
23 Leading Fashion Brand in the World HOTEL MISSONI
TOTAL MANAGEMENT HOTELS IN BRAND ROOMS IN PIPELINE COMPANY OPERATION OPERATION
Oman, Turkey, Edinburgh, Hotel Missoni Rezidor 305 Mauritius, Kuwait Brazil, Qatar
Florence, Ferragamo Lungarno Collection 267 Rome Emaar Marrakech, Armani Hotels & Resorts Milan, Dubai 255* Hospitality Marassi Enshaa Palazzo Versace Gold Coast 200 Dubai (Dubai Only)
Bulgari Hotels & Resorts Marriott Milan, Bali 123 London
Moschino Hotel Philosophy Milan 65
Christian Lacroix Hotel du Petit Moulin Paris 17
SOURCE I STR Global & Hotel News Now I March 2011 I *excluding residences
24 European Pipeline
Largest in Upscale 2nd Largest in Mid-Scale
5,800 5,800
5,100 5,500
4,200 5,300
2,500 2,000
1,800 2,000
1,600 1,800
500 1,200
SOURCE I STR Global Comprehensive Pipeline Outlook I April 2012
25 Middle East & Africa Pipeline
2nd Largest in Upscale 6th Largest in Mid-Scale
11,400 3,600
6,000 4,200
4,100 3,400
3,600 2,700
3,000 2,600
2,800 2,200
2,200 300
SOURCE I STR Global Comprehensive Pipeline Outlook I April 2012
26 Our Restaurants & Bars brands 100+ OUTLETS
27 Innovative Hospitality THE Z-FACTOR!
• 1st to go asset light
• 1st to focus on managing other peoples’ brands
• 1st to successfully co-brand
• 1st to offer Free Internet
• 1st to have an award winning marketing partnership with Nespresso
• 1st to offer 100% Guest Satisfaction Guarantee
• 1st to establish ambitious Responsible Business programme
28 Creating Value for Stakeholders
• World’s Most Ethical Companies (by Ethisphere) for three years in a row
• Strong portfolio of brands
• New breed hotels
• Global alignment synergies with Carlson
• Reputation for innovation
• Continuity in leadership
• Access to management team
• Local expertise in key emerging markets
• Strong personal relationships with hotels owners
– 70% of 2011 openings from multi-unit owners
29 Responsible Business
• Environmental programme in place since mid 1990s. Comprehensive Responsible Business programme launched in 2001 • Winner of the Worldwide Hospitality Award 2004 by MKG for Best Initiative in Sustainable Development • World Childhood Foundation as global charity organisation • 3 Pillars of Responsible Business – Health, Safety & Security – Social an Ethical Issues – Environmental Impact
30 Employer of Choice
• 35,000+ Rezidorians, 140 nationalities… one vision: Yes I Can! • Hire attitude and train for skills • Promote from within • High Employee Satisfaction score: 87% in 2011 • Best Employer of Hospitality Industry in the UK (2011) • Training, Development & Communication – Business School @ Rezidor
– Mentor Mentee Programme
– Centres of Excellence
– Management Development Programme
– Carlson Learning Network
– RezPortal, group-wide intranet
– Hotline, group-wide magazine
31 Global REVENUE GENERATING Capabilities
32 Powerful, global and fast expanding revenue generation capabilities
Marketing and USD 119 million USD 49 million USD 168 million sales spend
Sales 153 headcount 165 318
Club Carlson members 6.6 million 1.6 million 8.2 million
33 Global Revenue Generating Goals MUSD 414 INCREMENTAL REVENUE TARGET
Total Point Increase 2.0 1.8 0.8 Points 9.4 Points 1.9 Points 2.9 Points Points Sales Travel Loyalty Revenue Intermediaries Program Brand Optimization Websites End State Annual Incremental Revenue USD USD USD USD USD USD 414 RevPAR 128 83 36 80 87 Million Index Million Million Million Million Million
2010 2015 = Incremental Revenue vs. 2010
34 Revenue Generation Organisation 300+ SPECIALISTS
35 Brand Web Strong Identity...Latest Technology... Global Reach
36 Digital Footprints
37 Club Carlson A WHOLE NEW WORLD OF HOTEL REWARDS
• 8.2 million members worldwide
• One of the most rewarding loyalty programs in travel
• Faster Free nights faster
• More than 1,000 participating hotels worldwide
• No blackout dates
• Specific earning option for SMEs and meetings planners
38 2011 Top Accounts
CORPORATE MICE E-COMMERCE PARTNERS
1. STATOIL 1. BANKS SADLER 1. BOOKING.COM 2. SIEMENS CORPORATION 2. CWT 2. EXPEDIA & HOTELS.COM 3. ACCENTURE 3. AMEX 3. BIG MOUTH MEDIA 4. NOKIA & NSN 4. VIA TRAVEL 4. TRAVELOCITY & LASTMINUTE.COM 5. NORWEGIAN GOVERNMENT 5. PSA PEUGEOT CITROËN 5. HRS 6. ERICSSON 6. K.I.T.GROUP GMBH 7. UK GOVERNMENT 7. DEUTSCHE TELEKOM
8. GENERAL ELECTRIC 8. BCD TMC PARTNERS 9. VOLVO GROUP 9. HELMSBRISCOE 1. CWT 10. ABB 10. ZIBRANT 2. AMEX 3. HRG AIRLINE CREW TOUR OPERATORS/BROKERS 4. BCD 1. SAS 1. TUI GROUP 5. ABC 2. LUFTHANSA AG 2. THOMAS COOK 3. THAI AIRWAYS INT. 3. HOTELBEDS 4. BRITISH AIRWAYS 4. DERTUR LOYALTY PARTNERS
5. AIR FRANCE 5. KUONI 1. CLUB CARLSON 6. KLM ROYAL DUTCH 6. JTB/TUMLARE 2. 2 EUROBONUS (SAS) 7. KUWAIT AIRWAYS 7. MIKI 3. 3 MILES & MORE 8. AIR BERLIN 8. CONDOR 4. 4 FLYING BLUE (AF/KLM) 9. NORWEGIAN AIR SHUTTLE 9. GTA 5. 5 EXECUTIVE CLUB (BA) 10. EMIRATES AIRLINE 10. TRACOIN
39 Marketing Partnership with great companies
40 FINANCIAL Performance
41 Financial Performance Q1-2012
• L/L RevPAR grew by 6%, highest growth since Q1 2011 and well above market
• RevPAR strongest in Eastern Europe followed by the Middle East and Africa
• Revenue up 7%, supported by RevPAR growth and strong meetings and events business
• EBITDA margin up 2 pp; due to revenue growth and a good flow-through in the Nordics
• Launch of “Carlson Rezidor Hotel Group”
• Strategy “Route 2015”
• Reinforced and streamlined organisation
• Ranked World’s Most Ethical Hotel Company in 2012 by Ethisphere Institute
• Introduction of “Think Planet”: 25% energy reduction representing cost saving of MEUR 6 by 2016
42 Financial Performance GOOD IMPROVEMENT IN PROFITABILITY
IN MEUR Q1 2012 Q1 2011
Revenue 207 193 • 7% revenue growth – driven by RevPAR growth, RGI gain and strong meetings EBITDAR 58 53 and events business
% EBITDAR Margin 28% 27% • EBITDA margin up 2 pp supported by:
• Good revenue flow-through EBITDA -5 -9 • Additional high-margin fee revenue % EBITDA Margin -2% -4% • No pre-opening expenses
EBIT -13 -17 • Higher marketing costs (timing effect)
% EBIT Margin -6% -9% • EBIT margin also supported by lower Net results -14 -17 depreciation rate
43 “Route 2015” TANGIBLE INITIATIVES TO IMPROVE EBITDA MARGIN
6-8% uplift in Revenue Generation 3-4% EBITDA margin by Fee based growth 2-2.5% 2015*
Cost savings projects 0.5-1%
Cap utilization 0.5% MEUR 50-70 positive EBITDA impact on 2011 Asset Management
* Assuming Market RevPAR growth covers inflation
44 2012-Q1 Hotel Portfolio
In Operation Under Development
Hotels Rooms Hotels Rooms 2012 2011 2012 2011 2012 2011 2012 2011 BY REGION:
Nordics 57 58 13,979 13,591 8 7 1,539 1,486 Rest of Western Europe 160 160 29,794 29,277 17 21 3,193 4,071 Eastern Europe 66 61 16,745 15,377 34 35 7,354 7,778 Middle East, Africa & Others 44 37 11,082 9,122 41 37 9,569 8,146 Total 327 316 71,600 67,367 100 100 21,655 21,481
BY BRAND: Radisson Blu 210 202 49,977 46,897 50 55 12,326 13,073 Park Inn by Radisson 109 105 20,667 19,475 45 40 8,461 7,102 Hotel Missoni & Others 8 9 956 995 5 5 868 1,306 Total 327 316 71,600 67,367 100 100 21,655 21,481
BY CONTRACT TYPE:
Leased 77 78 17,689 17,764 - - 71 71 Managed 171 163 38,300 35,601 90 90 19,568 19,147 Franchised 79 75 15,611 14,002 10 10 2,016 2,263 Total 327 316 71,600 67,367 100 100 21,655 21,481
45 Financial Targets & Focus Areas
FOCUS AREAS EBITDA MARGIN UPLIFT OUR FINANCIAL TARGETS
Profitability EBITDA margin of • Revenue initiatives Target 12% over a business Rezidor’s Initiatives cycle
• Fee based room 6-8% Balance Small positive growth Sheet average net cash position • Cost savings Dividend Approximately one + Asset Management Policy third of annual after- • Asset management / tax income to be deleveraging distributed to shareholders
+ Market Recovery over and above inflation
* Assuming RevPAR growth covers inflation
46 The Executive Committee
Kurt Ritter President & CEO
Knut Kleiven Puneet Chhatwal Wolfgang M Neumann Deputy President & Executive Vice President & Executive Vice President Executive Vice President & Chief Development Officer & Chief Operating Officer Chief Financial Officer
Marianne Ruhngaard Eugene Staal Olivier Jacquin Senior Vice President & Senior Vice President Senior Vice President General Counsel Technical Development Sales, Marketing & Distribution
Michael Farrell Eric De Neef Senior Vice President Senior Vice President Human Resources Park Inn By Radisson
47 / 47 OUR NEWEST Flagship Hotels
48 v
HOTEL MISSONI KUWAIT Opened 2011 – 169 rooms 49 v
RADISSON BLU RESORT, GRAN CANARIA Opening June 2012 – 189 rooms 50 v
RADISSON BLU RESORT & SPA, AJACCIO BAY, CORSICA Opening June 2012 – 170 rooms 51 v
RADISSON BLU HOTEL, UPPSALA Opened May 2012 – 185 rooms 52 v
RADISSON BLU HOTEL, ISTANBUL ASIA Opened 2012 – 195 rooms 53 RADISSON BLU AQUA HOTEL, CHICAGO Opened 2011 – 334 rooms v
RADISSON BLU WATERFRONT HOTEL, STOCKHOLM Opened 2011 – 414 rooms 55 v
RADISSON BLU 1835 HOTEL & THALASSO, CANNES Opened 2011 – 134 rooms 56 v
RADISSON BLU HOTEL, BATUMI Opened 2011 – 168 rooms 57 v
RADISSON BLU PARK HOTEL, ATHENS Opened 2011 – 152 rooms 58 v
RADISSON BLU ANCHORAGE HOTEL, LAGOS V.I. Opened 2011 – 170 rooms 59 v
RADISSON BLU HOTEL, DUBAI DOWNTOWN Opened 2011 – 242 rooms 60 v
RADISSON ROYAL HOTEL, DUBAI Opened 2011 – 590 rooms 61 v
RADISSON BLU RESORT, FUJAIRAH Opened 2011 – 257 rooms
62 v
RADISSON BLU HOTEL, ADDIS ABABA Opened 2011 – 220 rooms 63 v
RADISSON BLU BELORUSSKAYA HOTEL, MOSCOW Opened 2011 – 264 rooms 64 v
RADISSON BLU SOBIESKI HOTEL, WARSAW Opened 2011 – 435 rooms 65 v
RADISSON BLU HOTEL, EAST MIDLANDS AIRPORT Opened 2011 – 227 rooms 66 v
PARK INN BY RADISSON ROSA KHUTOR Opened 2012 – 211 rooms 67 v
PARK INN BY RADISSON BRUSSELS MIDI Opened 2011 – 134 rooms 68 v
PARK INN BY RADISSON LUXEMBOURG Opened 2011 – 99 rooms 69 v
PARK INN BY RADISSON LEUVEN Opened 2011 – 133 rooms 70 v
PARK INN BY RADISSON MALMÖ Opened 2011 – 231 rooms 71 v
PARK INN BY RADISSON TRYSIL MOUNTAIN RESORT Opened 2011 – 369 rooms 72 v
PARK INN BY RADISSON MILAN MALPENSA Opened 2011 – 138 rooms 73 v
PARK INN BY RADISSON LÜBECK Opened 2011 – 197 rooms 74 v
PARK INN BY RADISSON CAPE TOWN FORESHORE Opened 2011 – 120 rooms 75 COMING Soon
76 Upcoming Openings WESTERN EUROPE & NORDICS
77 Upcoming Openings EASTERN EUROPE
78 Upcoming Openings MIDDLE EAST, AFRICA & OTHERS
79