Hotels and Services: Growth Drivers Driving sustainable, profitable ...

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■ €7,622m: up 7.9%
Revenue for the year was up €558
million over the €7,064 million reported
in 2004.
+4.7%
+4.5%
-2.5%
+1.2%
■ €1,986m: up 8.8%
EBITDAR rose by €161 million for the
year, from €1,825 million in 2004. Of
that increase, €115 million was generated
by business growth. Ebitdar
margin amounted to 26.1%, compared
to 25.8% in 2004. Like-for-like, the
increase was 0.4 points.
■ €603m: up 17.6%
Operating profit before tax and nonrecurring
items was up €90 million
over the €513 million reported in 2004.
The increase reflected the gradual
improvement in margins and the efficient
management of fixed asset holding
costs (rental expense, depreciation,
amortization and provision expense,
and financial expense), which represented
18.2% of revenue, compared
with 18.6% in 2004.
2005 ANNUAL RESULTS
Accor's results showed sharp improvement in 2005, thanks to a more
favorable hotel cycle and sharp growth in the services business. The
balance sheet was also considerably strengthened.
Like-for-like
Expansion
Disposals
Currency impact
+7.9% Total (reported)
Breakdown of 2005
revenue growth
LETTER TO SHAREHOLDERS - APRIL 2006
■ €333m: up 42.9%
Net profit, Group share increased by
a sharp €100 million to €333 million,
from €233 million in 2004. Earnings
per share rose to €1.55 from €1.17
in 2004, based on the weighted average
214,782,601 shares outstanding
in 2005.
■ €935m: up 9.6%
Funds from operations increased by
€82 million over the €853 million
reported in 2004.
■ €449m: up 43%
Expenditure for renovation and
maintenance of assets increased by
€135 million for the year, in line with
Group strategy, and represented
5.9% of revenue, versus 4.4% in
2004.
■ €479m: up 28.8%
Excluding €308 million for the acquisition
of a stake in Club Méditerranée,
development expenditure rose by
€107 million over the €372 million
reported in 2004.
■ 32% versus 71%
The net debt-to-equity ratio improved
significantly, as equity rose by €822
million, while net debt declined to an
all-time low of €1,420 million, from
€2,244 million in 2004.
■ 10.7% versus 10.0%
Return on capital employed improved
in both the Hotels and Services businesses.
€2.40 €2.18
€1.15: up 9.5%
€1.36 €1.17 €1.55
2001 2002 2003 2004 2005
IFRS IFRS
Earnings per share
■ €236m: up 28.3%
Based on ROCE after tax of 8.6%, a
weighted average cost of capital of
6.5% (versus 6.4% in 2004) and capital
employed of €11.3 billion (€10.9 billion
in 2004), EVA ® (Economic value
added) [(ROCE after tax – weighted
average cost of capital) x capital
employed] totaled €236 million, a
28.3% increase over 2004.
The dividend to be submitted
for approval to the Annual
Shareholders' Meeting on May 10*
compares to an ordinary dividend
of €1.05 and an exceptional dividend
of €0.25 paid for 2004. It
corresponds to a payout of 74%
of earnings per share for the year.
*The Annual Shareholders’ Meeting is webcasted
live and recorded for later viewing at
www.accor.com.
Holders of registered shares and members
of the Accor Shareholders Club who have so
requested received the notice of meeting in
April. It is also sent on request (see contact
information on page 1).