Radisson Hospitality AB’s Q1 2020 Report

January–March 2020

First Quarter 2020

• Revenue decreased by MEUR 42.8 (–20.1%) to MEUR 170.6. The decrease is due to the negative impact of the COVID-19 outbreak. At the end of the quarter, 170 hotels were closed due to the pandemic. On a like-for-like basis, including hotels under renovation (“LFL&R”), Revenue decreased by MEUR 41.7 (–20.1%).
• Reported RevPAR for leased and managed hotels decreased by 20.7%. RevPAR LFL&R decreased by 20.1%.
• EBITDA decreased by MEUR 30.5 to MEUR –5.3. The results in March was severely impacted by the revenue drop due to COVID-19. The cost base was significantly reduced in the hotels as of March, while the full impact of the measures taken to reduce central costs is only visible as from April. The EBITDA margin was
  –3.1% (11.8%).
• EBIT decreased by MEUR 34.5 to MEUR –27.4. In addition to the EBITDA decrease, results are impacted by costs for depreciation on the new IT platform and investments in the leased properties in 2019. The EBIT margin was –16.1% (3.3%).
• Profit/loss for the period decreased by MEUR 26.2 (–873.3%) to MEUR –29.2. The decrease in EBIT is partly offset by lower net financial costs and lower taxes.
• Cash flow from operating activities amounted to MEUR –3.5 (1.9).
• 3,571 (3,877) rooms were contracted, 452 (1,288) rooms opened and no (1,049) rooms left the system.

MEUR		Q1 2020	Q1 2019	Change	%
Revenue		170.6	213.4	–42.8	–20.1%
EBITDA		–5.3	25.2	–30.5	N/A
EBITDA margin		–3.1%	11.8%	N/A
EBIT		–27.4	7.1	–34.5	N/A
EBIT margin		–16.1%	3.3%	N/A
Profit/loss for the period		–29.2	–3.0	–26.2	–873.3%

Comments from the CEO

THE IMPACT OF COVID-19 HAS REQUIRED A STRONG REACTION FROM MANAGEMENT. SHAREHOLDERS ARE FULLY SUPPORTIVE OF FINANCING CASH NEEDS TILL THE EXPECTED END OF THE CRISIS

The outbreak of COVID-19 has had a significant impact on Radisson’s performance as from end of February 2020. At the end of May, more than 50% of the Group’s hotels across EMEA are temporarily closed.

Management has taken several measures to mitigate the financial impact, on both profit and cash flow, of the significant drop in revenue. These measures include, but are not limited to, furloughs, rent renegotiations and deferrals, application for governmental subsidies and loans, and post-ponement of non-strategic capex investments. The Group is helped by a flexible cost model, which shows an immediate capability to reduce costs.

In parallel, management is taking advantage from the low activity period to push forward strategic repositioning and development projects.

Radisson’s shareholders have immediately reacted by supporting with a MEUR 100 cash injection by June 8th in the form of subordinated shareholder funding, whether through a loan or a convertible bond, and a global financing plan will be finalised by June 8th to cover medium/long term cash needs until the expected end of the crisis. With this cash injection and ability to raise further funding, to the extent needed, Radisson will be able to cover its liquidity needs.

Federico J. González, President & CEO

Presentation of the Q1 Results

On June 2, 2020 at 10:00 CET, a combined telephone conference and live webcast (in English) concerning the report will be presented by the President & CEO, Federico J. González and Deputy President & CFO, Knut Kleiven. To follow the webcast, please visit https://www.radissonhospitalityab.com/investors.

To access the telephone conference, please dial:

Belgium, Local:                   +32 (0)2 400 9874
Belgium, Free:                     0800 48740
Canada, Free:                      1 866 992 6802
France, Local:                      +33 (0)1 76 70 07 94
France, Free:                       0805 103 028
Norway, Local:                     +47 2396 0264
Norway, Free:                      800 51874
Spain, Local:                        +34 914 146 280
Sweden, Local:                    +46 (0)8 5069 2180
Sweden, Free:                     0200 125 581
UK, Local:                             +44 (0)844 571 8892
UK, Free:                              0800 376 7922
USA, Local:                          +1 631 510 7495
USA, Free:                            1 866 966 1396
Standard international       +44 (0)207 192 8000

Confirmation code: 2680388. For a replay of the conference call please visit https://www.radissonhospitalityab.com/investors

Financial Calendar

Q2 2020 results: July 30, 2020
Q3 2020 results: October 29, 2020

For Further Information, Contact

Sergio Amodeo, CFO
sergio.amodeo@radissonhotels.com

Avenue du Bourget 44
B-1130 Brussels
Belgium
Tel: +32 2 702 9200

Website: www.radissonhospitalityab.com

About Radisson Hospitality AB (publ)

Radisson Hospitality AB (publ) is focused on hotel management and operates the core brands Radisson Blu and Park Inn by Radisson, as well as Radisson RED, Radisson and Radisson Collection.

The portfolio consists of 391 hotels, with 85,235 rooms, in operation and 133 hotels, with 27,125 rooms, under development in 80 countries across Europe, the Middle East and Africa.

Radisson’s strategy is to grow with an asset-right approach, balancing management and franchise contracts with selected lease contracts. Management and franchise contracts offer a higher profit margin and more stable income streams and lease contracts allow Radisson to complete their presence in Mature markets.

Radisson is a member of Radisson Hotel Group. For more information, visit www.radissonhospitalityab.com.

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• Q1_2020_ENG_final

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