Corporate Presentation October 2012 About 1,300+ HOTELS 210,000+ ROOMS 80,000 EMPLOYEES 80 COUNTRIES USD 7 BILLION SYSTEM-WIDE SALES 3 / 3 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 4 A Global Footprint Hotels in Operation & Contracted Pipeline #1 #1 65 103 640 180 #1 32 86 98 26 52 2012-06 Total = 1,311 2012-09 Rezidor = 435 5 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 6 #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 7 A Rich Expertise Across Business Models 748 Hotels 334 Hotels 1,082 Hotels 95,000 Rooms 73,000 Rooms 168,000 Rooms Managed. 10% Leased. 3% Leased/ Managed. Managed. Owned. 3% 29% 54% Leased. 3% Franchised. Franchised. Franchised. 59% 87% 22% DATA I Percentages reflect number of rooms in operation August 2012 8 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 9 in EMEA Brand Strategies • Largest upscale brand in • Largest mid-scale pipeline in • Leading fashion brand in the • An iconic luxury brand with Europe Europe world a bold vision • “New Breed” properties • Strong franchising platform • Worldwide opportunities • Long synonymous with glamour, sophistication • Moving South & East into • Clustered growth; UK, • Target fashionable cities and and impeccable service new markets Germany & Russia resort areas • Strategic alliance with Formosa to develop the brand in EMEA Exclusively develop Continue the push Expand Radisson Continue the steady the brand in in key emerging as a powerful, growth with focus emerging markets economies, with globally consistent on key gateway of Russia, CIS, added emphasis on first-class brand cities Baltics, Middle East midscale and Africa 10 A Strong Brand Portfolio Operating Hotels Pipeline Total Portfolio Hotel Missoni 2 4 6 Radisson Blu 261 90 351 Radisson 162 17 179 Park Plaza 46 18 64 Park Inn 128 67 195 Country Inn 480 36 516 Ca.1,300 Hotels in Operation + 240 Contracted Pipeline 11 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 12 About Publicly Listed on Stockholm Stock Exchange since 2006 A portfolio of 430+ Hotels & 95,000 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 14 Our Strengths Yes I Can! culture, fuelled by the Z-factor Employee loyalty A diverse and experienced management team Company’s growth story Strong footprints in emerging markets Strong brands – new breed hotels Global partnership with Carlson Solid relationship with hotel owners 15 Our Vision 16 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. 17 Our Values 18 19 436 hotels 95,000+ rooms A Powerful Growth Story 500 Owned Franchised Leased Managed 450 400 350 300 250 200 150 100 50 0 09 - 2011 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 CAGR I Compound Annual Growth Rate 20 Asset Light Growth in Emerging Markets EBITDA Margin impact from current pipeline = 2 to 2.5% pts positive impact In Operation Pipeline Total Rezidor Portfolio Q3-2012 Q3-2012 Q3-2012 Middle Middle East, East, Africa & Nordics Middle Africa & Nordics Others 6% Nordics East, Others 16% 16% 19% Africa & 22% Others Rest of 41% Western Europe 13% Eastern Europe Rest of 24% Western Europe Rest of 34% Western Eastern Europe Eastern Europe 41% Europe 27% 40% 335 Hotels 100+ Hotels 435+ Hotels 73,200 rooms 21,900 rooms 94,700+ rooms 21 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) 22 Leading Hotel Operator in Russia, CIS & the Baltics 23 Largest Pipeline In 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 24 World’s Leading Fashion Brand: 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 25 European Pipeline Largest in Upscale Largest in Mid-Scale 6,200 6,600 5,100 6,500 4,100 3,800 2,000 2,400 1,800 1,900 1,400 1,200 350 1,200 SOURCE I STR Global Comprehensive Pipeline Outlook I August 2012 26 Middle East & Africa Pipeline 2nd Largest in Upscale 4th Largest in Mid-Scale 12,200 3,100 6,100 3,000 3,800 3,000 3,100 2,700 2,800 2,500 2,200 2,100 2,100 300 SOURCE I STR Global Comprehensive Pipeline Outlook I August 2012 27 Our Restaurants & Bars: 100+ Outlets across EMEA 28 Hospitality with 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 29 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 30 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 31 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 32 TOP EXECUTIVES GENERAL MANAGERS • Pro-active Leadership HEADS OF • The Business School @ • Performance Management DEPARTMENT Carlson Rezidor Process & Appraisal Skills • Pro-active Leadership • Competency Based Interview • Leading Yes I Can! Technique SUPER- • Mentor programme VISORS • The Business School @ Carlson Rezidor • Performance Management Process & Appraisal Skills ALL • On Job Skills Trainer • Mentee Programme EMPLOYEES • Competency Based Interview • Leading Responsible • Senior STAR Technique Business • New Hire Orientation Programme • Supervisory Training and • Yes I Can! Delivering the Promise Resource Programme for Radisson Blu (STAR) • Yes I Can! It is all about You • Centres of Excellence for Park Inn • Management Development • Living Responsible Business Programme • On Job Skills Training • Business School @ Carlson Rezidor • The Carlson Learning Network • Master Trainer for GTT 33 Global REVENUE GENERATING Capabilities 34 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 35 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.