RezidorHotel Group AB

FY 2010

Mars 2011

Sources: MKG Hospitality – Feb. 2011, Companies annual reports 2010 and corporate website

(1) Nb of rooms based on internal estimates

Rank 2010 Group Hotel Network

1 Accor 2,368 h. 260 kr.

2 Best Western 1,360 h. 93 kr.

3 Intercontinental 590 h. 92 kr.

4 Louvre Hotels 947 h. 67 kr.

5 Rezidor 276 h. 57 kr.

6 NH Hoteles 361 h. 52 kr.

7 Sol Melia 214 h. 47 kr.

8 TUI 182 h. 46 kr.

9 Hilton Worldwide 193 h. 45 kr.

10 Whitbread PLC 592 h. 43 kr.

Top 10 Hotels Players in EuropeRezidor ranks 5th in number of rooms, first on the upscale segment (with its brand Radisson Blu)

As of Dec. 2010

Only Midscale

Resort

Resort

Only UK

(1)

(1)

(1)

(1)

(1)

2

3Rezidor – Company profile

FY 2010

Rezidor Hotel Group AB.Summary

1. Company overview Slide 3

2. Company organization Slide 4

3. Brands positioning Slide 5

4. Geographical breakdown Slide 6

5. Operating mode Slide 7

6. Group strategy Slide 8

7. Pipeline and lodging development Slide 10

8. Key figures Slide 11

9. SWOT analysis Slide 13

10. Company history Slide 14

11. Brands description Slide 15

4Rezidor – Company profile

FY 2010

1. Company overview

– Rezidor is a Hospitality Swedish company operating in the traditional lodging industry

– Three main brands: Radisson Blu, Park Inn by Radisson and Hotel Missoni

– Asset-light business model– 4,947 employees

– Fifth hotel player in Europe (in nb of rooms)– Radisson: largest upscale hotel brand, according to

MKG– Segmented portfolio: Luxury/Lifestyle (Hotel Missoni),

Upscale (Radisson Blu), Midscale (Park Inn by Radisson), Limited service (Country Inn)

– Presence in 48 countries through EMEA – Radisson Blu and Park Inn by Radisson developed in

EMEA under Master Franchise Agreements with Carlson

Description

– Listed on the NASDAQ OMX Stockholm Exchange on November 2006

Main Figures Segmental Revenue and EBITDARevenue

51%

43%

3%

3%

Eastern EuropeMEA

Nordic Europe(2)

Western Europe

Sources: Reuters as of 28 April 2011, Rezidor Annual Report 2010, Rezidor website

EBITDA (1)

55%

22%

23%

Eastern EuropeMEA

Nordic Europe (2)

Western Europe

(1) Excluding Western Europe negative EBITDA (-€4.6m)

(2) Incl. Denmark, Finland, Iceland, Norway and Sweden

Main Shareholders

Owners Stake

Float 49%

Carlson Companies 50%

Nordea Investment Management 12%

Swedbank 7%

# rooms

Mid/Ups 312 66,375

# hotels

62.3% 99.5€ 62€

ADROR Revpar

segment

2009 2010 2011E 2012E

Financials (M€)Revenue 677 786 871 942

% Change in Revenue -13.8% 16.1% 10.8% 8.2%

EBITDA 5 32 64 111

EBITDA margin 0.7% 4.1% 7.3% 11.8%

Net Profit -28 -3 23 48

Net margin NA NA 2.6% 5.1%

Market Data (M€)Market Cap 718

NetworkHotels 286 312

Rooms 60,646 66,375

Market Data as of April 28, 2011

5Rezidor – Company profile

FY 2010

2. Company organizationGroup companies and legal structures

Rezidor Hotel Group AB(Sweden)

Rezidor Hotel Holding AB(Sweden)

RezidorRegent A/S(Denmark)

Rezidor LoyaltyManagement A/S

(Denmark)

RezidorLifestyle A/S

(Denmark)

RezidorPark ApS(Denmark)

Rezidor Hospitality A/S(Denmark)

RezidorCountry A/S(Denmark)

RezidorSweden AB

(Sweden)

Rezidor HotelsApS Danmark

(Denmark)

RezidorComerstone A/S

(Denmark)

Rezidor HospitalityNorway AS

(Norway)

RezidorRussia A/S(Denmark)

100% shares and votes

100% shares and votes

100% shares and votes

100%100% 100% 100% 100%

100% 100% 100% 100% 100%

Sources: Company reports

6Rezidor – Company profile

FY 2010

3. Brand positioning

Source: Rezidor Annual Report 2010

NB: 6 Regent hotels included in Other hotels in Annual Report

(1) 2 Country Inn hotels in EMEA (Germany and Austria)

Full Service

Midscale(% of room network)

Luxury(% of room network)

Economy(% of room network)

Limited Service

Upscale(% of room network)

103 h. / 19,232 r. / 26 c.

200 h. / 46,122 r. / 48 c.

1 h. / 136 r. / 1 c.

2 h. / 133 r. / 2 c.

(2)

(1)

Hotels / rooms / countries

7Rezidor – Company profile

FY 2010

4. Geographical breakdown

60 h15,071r

WesternEurope

160 h29,406r

Nordic Europe56h

12,945r

Eastern Europe

Middle-East, Africa & Others36 h

8,953r

Hotel and room networkAs of December 31st, 2010

312 h, 66,375 r

Source: Rezidor Annual Report 2010

44%

20%

23%

13%

X%

Share ofglobalnetwork (in nb of r)

8Rezidor – Company profile

FY 2010

5. Operating mode

2002133 h. / 28,900 r.

2010312 h. / 66,375 r.

29%

1%

29%

41% 54%

26%20%

FranchisedOwned Leased Managed

Source: Rezidor Annual Report 2002 & 2010

+37,745 rooms+130% over 8 years

9Rezidor – Company profile

FY 2010

Source: Rezidor Annual Report 2010

Park Inn by Radisson– New name launched in Q2 2010

– Link with Radisson’s brand image to enhance further growth

Sale of Regent– Positive effect of M€ 5.7

– Management services still provided to Regent hotels after sale

Portfolio agreement in the Baltics– Agreement to re-brand 10 Reval hotels (ca 2,400 rooms) in the Baltics to Radisson Blu and

Park Inn

– Agreement to strengthen Rezidor’s position in the key markets Riga, Tallinn and Vilnius

Carlson’s shareholding– Carlson, Rezidor’s major shareholder, has increased its shareholding to 50.03% of the

registered shares in May 2010

6. Group strategyImportant developments of the year

M&A

Development strategy

Brand strategy

Ownership

10Rezidor – Company profile

FY 2010Sources: Rezidor Annual Report 2010

*Press review as of March, 2011

Margin improvement: EBITDA target margin of 12%– Tight cost control (following the cost reduction program of 2009)

– Substantial increase in cash flow in 2010 allows increase in maintenance Capex

– Fixed-lease structure to be maintained in Western Europe

Asset light strategy– Increasing proportion of managed and franchised hotels (95% of the pipeline vs. 74% of the actual

portfolio)

– Hotels conversions privileged in some specific markets such as UK, Germany and Russia for Park Inn brand, while Radisson Blu expansion mainly through new builds

Focus on expansion of core brands: Radisson Blu, Park Inn by Radisson– Disposal of peripheral assets: sale of Regent luxury brand to Formosa in April 2010

– Key priority to boost brand awareness as a mean to increase RevPar penetration: new name for Park Inn followed by a major new marketing and sales campaign in 2011, mainly in UK

Expansion plans in emerging countries– Focus on Russia/CIS and Africa: strong economic growth, undersupply or old inventory combined with

high room demand and low operating costs

– Emerging markets represent over 70% of the pipeline (vs. 36% of rooms in operation)

– Radisson Blu: key to entering new markets, Park Inn usually following the footsteps of Radisson Blu

– Rezidor is considering to enter the economic segment in Middle East, Russia and Africa under a new brand*.

6. Group strategyStrategic axes

11Rezidor – Company profile

FY 2010

7. Pipeline and lodging development

Source: Rezidor Annual Report 2010

Pipeline 2011-2015 : 21,493 additional rooms (32% of the current network), incl. 8100 new rooms signed in 2010

20%

9%

37%

34%

Eastern Europe

MEA

Nordic Europe

Western Europe

34%

63%

3%

88%

4%8%

Missoni

Radisson

Park Inn

Franchised

Leased

Managed

Per region Per brand Per contract type

Business Development in 2010

• Openings: +7,173 r. (32 h.)

• Closings: -1,444 r. (6 h.)

• Net evolution: +5,279 r. (+9,4%)

Focus on Eastern Europe and MEA

Two core brands: Radisson Blu and Park Inn

by Radisson

+95% current pipeline managed & franchised

12Rezidor – Company profile

FY 2010

8. Key figuresP&L evolution & forecasts

-3%

-1%

1%

3%

5%

7%

9%

11%

13%

15%

0

100

200

300

400

500

600

700

800

900

1 000

2003A 2004A 2005A 2006A 2007A 2008A 2009A 2010A 2011E 2012E

Revenue EBITDA margin Net margin

Financials (in M€) 2003A 2004A 2005A 2006A 2007A 2008A 2009A 2010A 2011E 2012E CAGR 2003-2010

Revenue 390 499 587 707 785 785 677 786 871 942 10,5%

% Change in Revenue NA 27,9% 17,6% 20,4% 11,0% 0,0% -13,8% 16,1% 10,8% 8,2%

EBITDA (12) 21 44 51 81 70 5 32 64 111 NA

EBITDA margin NA 4,2% 7,5% 7,2% 10,3% 8,9% 0,7% 4,1% 7,3% 11,8%

Net Profit (33) 4 18 21 46 26 (28) (3) 23 48 NA

Net margin NA 0,8% 3,1% 3,0% 5,9% 3,3% NA NA 2,6% 5,1%

Sources: company reports and Reuters consensus estimates as of March 16, 2011

13Rezidor – Company profile

FY 2010

– Strong support of the worldwide group Carlson,

which owns 50.1% of the company– Large product range, from midscale to luxury– Large brand awareness in Scandinavia– Leadership in Scandinavia– Good business model (upscale with maximum

pricing power, strong operating leverage, no debt,

well positioned to win management contracts)

Strength

– Geographical footprint limited to EMEA– Expensive lease commitments– Dependence on Carlson– Poor business control, especially as Rezidor

pursues an aggressive growth plan– Bad ratings in customer satisfaction surveys– Difficulties in securing new hotel contracts or

keeping/prolonging maturing contracts

Weaknesses

– Improving business mix (asset light

management contracts)– Well positioned for recovery, thanks to costs

measures implemented in 2009 – Growing share of the branded hotels trend for

conversion from unbranded to branded hotels– Strong room rollout potential– Central and Eastern Europe as one of the

world’s fastest emerging travel markets

Opportunities

– Intense competition, with a large number of

players, especially in Europe

Threats

9. SWOT analysis

Source: Broker research, June 2010

14Rezidor – Company profile

FY 2010

10. Company history

Source: Rezidor Website

Scandinavian Airlines founds the company SAS International Hotels by opening its first hotel, the SAS Royal Hotel in Copenhagen1960

1980 First hotel outside Scandinavia: SAS Hotel Kuwait

1994First master franchise agreement with CarlsonRadisson SAS is born

2001 SAS International Hotel becomes Rezidor

2002 Multi brand franchised master agreement, adding 3 other Carlson’s brands to Rezidor Portfolio: Regent, Park Inn and Country Inn

2005 Hotel Missoni is launched, in partnership with the Italian fashion brand of the same name

2006 Rezidor goes public on the Stockholm Stock Exchange

2009 Radisson SAS becomes Radisson Blu

2010 Sale of Regent Hotels to Formosa

15Rezidor – Company profile

FY 2010

Hotel Missoni

Radisson

Park Inn by Radisson

Source: Rezidor Annual Report 2010

11. Brands description

Limited Service Country Inn

Full Service

16Rezidor – Company profile

FY 2010

Overview

Full service, upper upscale brand ►Focusing on lifestyle and design aspects►License agreement with the italian fashion house

of the same name►Woldwide licensing agreement►First Hotel opening in 2009

Main competitors► So by Sofitel, W, Morgans, Malmaison, Bulgari,

Armani

Network

Network►2 hotels, 305 r. (incl. newly opened Missoni

Kuwait City)►Pipeline = 3 hotels / 508 rooms

Locations► Fashionable cities as well as in up-and-coming

resort areas

►Geographical breakdown►Worldwide, with a focus on Europe and the

Middle East►Two hotels operated in Edinburgh and Kuwait►Future openings include Oman, South Africa,

Brazil

11. Brands descriptionFull service – Hotel Missoni

Source: Rezidor Website

17Rezidor – Company profile

FY 2010

Overview

Full service, upscale brand ►Largest Rezidor hotel brand ►Largest upscale hotel brand in Europe►Ranging from small boutique hotels to major city

landmarks►Managed / Leased contracts►Trademark of Carlson, master franchise agreement

with Carlson until 2032, with the option to extend the agreement until 2052

New architecture and design policy►Rebranded as Radisson Blu in 2009

Key figures

FY 2010►ADR: €110.3►RevPar: €70.5►Occupancy Rate: 63.9%

Main competitors► Pullman, Hilton, Marriott H&R, Sheraton

Network

Network►200 hotels / 46,122 rooms in operation

= 230 rooms per hotel on average►Pipeline: 52 hotels / 12,922 rooms

Locations► Mainly located in city centers, leisure resorts

and airports

FY 2009► ADR: €105.95►RevPar: €65.9►Occupancy Rate: 62.2%

11. Brands descriptionFull service – Radisson Blu

Source: Rezidor Annual Report 2010, Rezidor Website

18Rezidor – Company profile

FY 2010

Overview

Full service, midscale brand►New name to be used from January 2011: Park Inn

by Radisson►Mainly operated under franchise agreements ►Targeted markets: UK, Germany and Russia

(growth mainly driven by conversion)►Trademark of Carlson, master franchise agreement

with Carlson until 2032, with the option to extend the agreement until 2052

Key figures

FY 2010►ADR: €64.5►RevPar: €37.5►Occupancy Rate: 58.0%

Main competitors► Novotel, Scandic, Holiday Inn

Network

Network►87 hotels / 16,121 rooms in operation

= 185 rooms per hotel on average►Pipeline = 51 hotels / 9,408 rooms

Locations►City centers, suburban locations and transport

terminals

FY 2009► ADR: €63.8►RevPar: €33.6►Occupancy Rate: 52.6%

11. Brands descriptionFull service – Park Inn (1/2)

Source: Rezidor Annual Report 2010, Rezidor Website

Park Inn by Radisson is a “fresh and energetic” midscale hotel brand (119 hotels / 85% in Europe)

Relaunched in 2003, stand-alone brand until 2010, when an affiliation to Radisson was decided (starting Jan 2011)

New name is in line with Rezidor decision to focus its dvlp on its two core brands, Radisson and Park Inn

Objectives : The link with Radisson and its great strength and reputation will allow Park Inn to grow faster and to increase the brand awareness. But no repositioning / upgrade seems to be planned.

Implementation Plan : – The rebranding process will start in Park Inn’s key home market, the United Kingdom, before extending the process across Europe,

Middle East and Africa.

– The transition of Park Inn hotels to Park Inn by Radisson will be completed by the end of 2011.

– First Park Inn by Radisson in Brazil, developed by Atlantica Hotels International

Pipeline1 : 41 in EMEA, 3 in North America , 2 in APAC (India), 2 in Latin America

19

11. Brands description Park Inn (2/2) : affiliation brand strategy case study

2000 2002 2010

• Carlson acquires the Park Inn brand from Olympus Hospitality Group

• Rebranding operation to Park Inn by Radisson to enhance further growth

• Carlson signs a master franchise agreement with The Rezidor Hotel Group to develop Park Inn in EMEA

2003

• Rezidor relaunches Park Inn. First hotel in Berlin

1 Lodging Econometrics Q4 2010

20Rezidor – Company profile

FY 2010

Overview

Limited service, economy brand► Brand under development, currently under review

by Rezidor►Trademark of Carlson, master franchise agreement

with Carlson until 2032, with the option to extend the agreement until 2052

Main competitors► Ibis

Network

Network►2 hotels / 133 rooms in operation

Geographical Breakdown►Germany►Austria

11. Brands descriptionLimited service – Country Inn

Source: Rezidor Annual Report 2010, Rezidor Website