Synergies between the two companies
Synergies between the two companies
Synergies between the two companies
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� The <strong>two</strong> <strong>companies</strong> started to<br />
settle synergies:<br />
� Increasing revenues<br />
� Optimizing purchasing<br />
� Sharing skills and expertise<br />
� Human resources<br />
<strong>Synergies</strong> <strong>between</strong> <strong>the</strong> <strong>two</strong> <strong>companies</strong><br />
€17m<br />
6<br />
11<br />
2005<br />
Impact on profit<br />
before tax<br />
€33m<br />
12<br />
21<br />
2006<br />
€46m<br />
16<br />
30<br />
2007<br />
Accor Club Med<br />
21
Club MedColombus -Bahamas<br />
22
Creation of <strong>the</strong> European leader in casinos<br />
� Jointly held by <strong>the</strong> Desseigne-Barrière family (51%), Accor (34%) and<br />
Colony Capital (15%)<br />
� €1 billion in revenues<br />
� 37 casinos<br />
� 13 luxury hotels<br />
� Restaurants<br />
Casino Barrière d'Enghien-les-Bains<br />
� Unique positioning to capitalize on <strong>the</strong> ongoing consolidation of <strong>the</strong><br />
casino industry in Europe: concession won for <strong>the</strong> new Toulouse casino<br />
� Shareholders’ pact for company management and pooling of skills<br />
� Capital gain of €83 million for Accor<br />
23
Casino Nice<br />
24
Casino Deauville<br />
25
Hôtel Normandy<br />
26
Travel agencies<br />
� Acquisition of Maritz Corporate Travel in <strong>the</strong> United<br />
States<br />
� Acquisition of Protravel in France<br />
Carlon Wagonlit Travel streng<strong>the</strong>ns<br />
its its # 2 position worldwide<br />
27
� 2004 Results<br />
� 2005 Q1 sales<br />
� Strategic Vision<br />
Outline<br />
28
�Revenues of €1,676m:<br />
up 5.6% as published<br />
�At constant scope of consolidation<br />
and exchange rates: up 3.8%<br />
� Hotels: up 2.1%<br />
� Services: up 11.8%<br />
� O<strong>the</strong>r businesses: up 6.6%<br />
First-quarter 2005 revenues up 5.6%,<br />
confirming a good overall trend<br />
4.3%<br />
Q1 04<br />
Like-for-like change<br />
6.1%<br />
Q2 04<br />
2.9%<br />
Q3 04<br />
Excl. impact of Easter<br />
vacation calendar and 29<br />
days in February<br />
5.1%<br />
Q4 04<br />
5.4%<br />
3.8%<br />
Q1 05<br />
29
� 2004 Results<br />
� 2005 Q1 sales<br />
� Strategic Vision<br />
� An international strategic investor for<br />
Accor<br />
� A new asset management policy<br />
� Accelerated expansion<br />
Outline<br />
30
invests<br />
via Colony VI et Colyzéo<br />
€ 1 billion<br />
in<br />
31
� International investment fund<br />
specialized in real estate and hotels<br />
Colony Capital<br />
� Since 1991, Colony Capital has invested $12.5 billion<br />
with an average return on investment of 21%<br />
32
Los<br />
Angeles<br />
Hawaii<br />
Head office<br />
Offices<br />
Boston<br />
New York<br />
International presence of Colony<br />
London<br />
Paris<br />
Madrid<br />
Rome<br />
Beirut<br />
Seoul<br />
Shanghai<br />
Hong Kong<br />
Tokyo<br />
Taipei<br />
Current investments : 1/3 Europe, 1/3 North America , 1/3 Asia<br />
33
� Accor Casinos<br />
� Group Lucien Barrière<br />
� Sofitel Demeure et Libertel<br />
� Novotel Paris Tour Eiffel<br />
Accor's traditional partner since 1998<br />
Novotel Paris Tour Eiffel<br />
34
Benefits for Accor<br />
A sizeable investment from an international strategic investor<br />
for Accor :<br />
� Give additional equity resources<br />
� Speed up expansion<br />
� Provide international expertise in hotel expansion<br />
A catalyst for for <strong>the</strong> <strong>the</strong> Accor share price<br />
35
ORAs<br />
(mandatory notes)<br />
� Amount: €500 million<br />
� Maturity: 3 years<br />
� Interest: 4.5%<br />
� Issue price €39<br />
(10% premium on <strong>the</strong> average<br />
share price of <strong>the</strong> past month)<br />
Terms of <strong>the</strong> transaction (1/2)<br />
Convertible notes<br />
� Amount: €500 million<br />
� Maturity: 5 years (put at 3 years)<br />
� Interest: 3.25%<br />
� Conversion price €43<br />
(21% premium on <strong>the</strong> average<br />
share price of <strong>the</strong> past month)<br />
36
� Specific clauses for <strong>the</strong> subscriber<br />
� No conversion before January 1, 2007<br />
� Six-month standstill following conversion<br />
� No short over <strong>the</strong> period<br />
� Corporate governance :<br />
Terms of <strong>the</strong> transaction(2/2)<br />
� Colony joins <strong>the</strong> Supervisory Board and <strong>the</strong> commitments<br />
committee<br />
37
� 2004 Results<br />
� 2005 Q1 sales<br />
� Strategic Vision<br />
� An international strategic investor for<br />
Accor<br />
� A new asset management policy<br />
� Accelerated expansion<br />
Outline<br />
38
Innovative asset management<br />
to support <strong>the</strong> Hotel strategy<br />
An innovative<br />
asset externalization program<br />
designed to:<br />
� Reduce capital intensity in upscale hotels<br />
� Variabilize holding costs in <strong>the</strong> midscale segment<br />
Focus on on operating hotels<br />
and<br />
Reinforce expansion strategy<br />
39
Using <strong>the</strong> right operating structure<br />
for each segment<br />
Hotel segment Preferred operating structure<br />
� Management contracts<br />
with minority stake<br />
� Variable rents, based on<br />
a % of revenues<br />
� Franchises<br />
� Fixed/variable rents<br />
� Franchises<br />
40
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