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Hello and welcome to the Accor full year 2020 analyst call. My name is Molly and I'll be your coordinator for today's event. Please note that this call is being recorded and for the duration of the call, your lines will be on listen only. However, there will be an opportunity to ask questions. This can be done by pressing star one on your telephone keypad to register your question. If you require assistance at any point, please press star zero and you will be connected to an operator. I would now like to hand the call over to your host, Sebastian Brisen, Chairman and CEO, to begin today's conference. Thank you.

Good morning, everyone. Thank you so much for connecting early in the day here in Paris. I've been saying to many of you for a number of years that the hospitality industry is is all about human capital. So before we start, I just want to share with you how sad, and it's probably not strong enough, how sad I am of Arne's passing earlier this month. He was a very rare individual who really put his heart and soul into achieving his vision. He was a fierce competitor of Accor. But the one thing I remember of him for sure is the kindness of his heart. You know, I had some privileged moment with Arnie, which I've never shared with anyone. When I started Accor seven years ago, I reached out to him. I did not know of him at all. And I've asked whether we can meet. So we did meet. a month after I jumped into the job in early September in Central Park for a couple hours, working alone in the park where he was teaching me everything about the industry. And the only thing I can say today to all of you and the colleagues of Marriott and to one of our colleagues, there is a profound sense of loss for me and for the industry. Now when we turn to The 2020 year is probably the worst that we've been navigating through since hospitality has been created in the 1960s. But I have to say, I am extremely proud of our core demonstrating resilience and adaptability. If you look at the first page in front of you, I think we've never seen... only 2% of the countries with no restriction, whether it is confinement or curfew. That being said, I am amazed and thankful of all the owners of Accor and all the 40 brands of ours that we do have in today's circumstances with frontiers being closed, with leisure market not existing. We, however, have 85% of our hotels today being open ready for business, and some of them fetching a 5%, a 10% occupancy. But yes, the light is on, and we are open. When you look at the 2020 GDP, it is, of course, very much correlated to our industry. And it is of no surprise but remarkable that the only country who's been fetching a positive GDP happened to be China. But what's so noticeable on this page is a likely rebound of the economies of France with a plus 6% expected of the UK with plus 4.2%. We have some bright days ahead of us when it comes to economy rebound, and we surely will benefit from it in a deep way. If you go to the page after, we're doing the exercise which you have on the left side here. You know the billion 459 travelers in 2019. We of course know it dropped to end up the year with 379, but I was doing the math. If you account for January and February months where most of the activity was still intact with the provider of China, that probably is a couple hundred million of travelers for the first two years not impacted of last year. So the drop is likely not 74%. The drop is likely to be close to 90% in international travel through the pandemic. But what you have on the right side is a word of caution. You see China, and we were so pleased, all of us being so strong in Chinese hospitality, to see that very early end of October of last year, China was mostly back to REF PAR numbers pre-pandemic. But we also saw that in only a matter of 40 days, with the province outside of Beijing, Hubei, that it dropped again with very few cases of COVID. They shut down a lot of actually 10 or 20 million people outside of Beijing, and the red part dropped immediately back to minus 40% level. However, I'm very impressed with the resilience of the U.S. hospitality industry, of course impacted like all of us, but less less so than Europe, fetching a minus 50% REFPR. And you see the blue line, which is 45% of our core happens to be in Europe. And it's tough. And it's tough, and it's still in a minus 80% range because of all the things you guys know, what's happening, whether it is in UK, in Europe, Central Europe and in Southern Europe. So it's going to get better, but you see the vast differences depending on where you sit in terms of geography exposure. The slide after, we said it, we repeated it over the last nine months that ACO will weather the storm. So we did. And we've been able to do it because of three pillars. The first which is the most extraordinary one because it is non-quantifiable, has to do with the people of Accor. You know we have over 300,000 colleagues working under Accor brand in 110 countries. You know that we've been furloughing 280,000 of them in the end of March. And we've put, therefore, an whole heartless fund together on making sure those being furloughed, those not having any subsidies, not having any paycheck, will be offered availability to hospital to care and nutrition. And we did spend $21 million with the benefit of 62,000 people, our core colleagues, to make sure that, I guess, the need they had would be fulfilled. But we did so as well for the owners. Many of our owners were looking for some help in many different categories from our core, and then Jonathan will talk to you a bit on working capital issues. The guests of our core, we have also to respond to them. We have to make sure that they are encouraged to book again, and so I guess we're going on full flexibility when it comes to cancellation policy. We, of course, looked at any sanitary protocol measures to make sure that, I guess, whatever all the hotels open of our core will have the most impeccable sanitary protocol and health safety measures to welcome every individual on this planet. So 92% of the hotels of our core today have the protocol being implemented and verified by third parties. And for our shareholders, many of you listening to me on the phone, of course we haven't forgotten about you. It was all the questions of preserving the JVT for this company. and making sure that whatever cash we have could be safeguarded, probably more cash, if we could, to be preserved and to be increased. Cost savings measures have been put together, and Jean-Jacques will talk to you about it. Simplifying the organization to make sure we have a greater flexibility, a greater agility within the bodies of this company. And, which is probably the most important, that making sure that you are prepared for the rebound. And so are we as of this very minute. If the rebound happens tomorrow morning, We are set to go, which is why 85% of the hotels are today open. And the team is eager and ready to welcome back a billion five international travelers and all the billions of domestic travelers. On the page after, when it comes to accelerating the plan, we didn't sleep for the last 10 months. We did not only do things when it comes to agility, flexibility, cost savings, sanitary protocol. We've done so much more. We've been lucky and or smart, you know the expression, by closing on a billion plus of Albis, which is Eastern Europe real estate portfolio being sold and cashed in by our core in early March of 2020. We've been getting the asset heaviness side of more than big, 400 million plus or minus away from our balance sheet, again, end of February 2020. We've been readapting the organization with three very key words, focus, simplify, and expand. And we're being as we have been for the last 50 years. Spirit of Congress is one of the biggest values of this company. You just cannot stay immobile even through a crisis. So that was the time to really put together alliances, partnership, going all the way to 100% ownership in the minority interest we had when it comes to the lifestyle segment, which you know well. I am a big, big believer that the lifestyle segment will account for probably more than 20% of all the offerings of hotels in this planet over the next 20 years. It is a big segment. It is what individuals want. They want something more unique with more foodie, local content. So we made a long bet and a big bet in creating Ennismore and putting within the Ennismore platform the brands we've been acquiring, securing over the few years, and we'll talk about it. in a minute, but it's a major acceleration and a statement of where ARCO should be positioning ourselves without forgetting, of course, on the legacy brand, and again, we'll touch upon it in a minute.

Jean-Jacques, it's to you. Thank you, Sébastien. Good morning, good morning, everybody. Thanks for being with us today for this result presentation. Let's move to page nine, which is the overview of the financial year highlights. Starting, in fact, with the business highlight, the figures. The figures reflect the magnitude of the COVID crisis we all faced. The RESPA was down 62% over the year. The net organic growth slowed down to 1.9%. And all of that translated into a revenue for the group decrease of 55% on a life-or-life basis to a 1.621%. revenue level. To cope with this situation, as mentioned by Sebastien, we obviously implemented swiftly drastic actions, and we saw a ramp-up of the benefits of those actions over the year. The EBDA ended up being a minus $391 million, and despite a tough Q4, and notably a tough Q4 because of Europe, we were able to decrease the sensitivity to respite to less than $19 million. I'll detail that in the next slide. As for cash, the recurring free cash flow was minus $727 million. And here again, we significantly reduced our monthly cash burn to $61 million per month. The last but not least, our key priority was to preserve a strong balance sheet to weather this crisis. So several actions were put in place that you can see on the table. I mean, the successful issuance of 500 million convertible bonds back end of last year. It was 6.5 times oversubscribed, which again translates here the investor sentiment towards Accor. And the renegotiation of the revolving credit facility, which in fact was negotiated in March 2020, but it was renegotiated in February 2021. And I am happy to report that we have no more testing before June 2022, but more importantly, that this was done with an unanimous backup from the bank, unanimous approval from the bank, and no additional strings, additional covenants, which translates again to confidence. And the last point is something that you probably saw in the press last week, which we disposed of 1.5% of stake in Wazoo for $239 million. Again, this was part of the asset light roadmap that we had presented to you at the end of 2019. Further simplify the balance sheet, crystallize value creation, and just to give a number on that given transaction, it means that we made 9X, nine times our initial investments. All of these translate into a strong liquidity position. including the Andron evolving credit facility, which is to the tune of €4 billion. So I move to giving you more detail on what we've been calling controlling the controllable and this operating leverage. The EBITDA sensitivity, which is the left part of the table, you see improving from a point that we had discussed back in March of €28 million. to 18 million in H2. And we talk of hundreds of millions, obviously, when you do the computation. If you move to the translation in cash, the cash burn was in March minus 150 million, was reduced, in fact, to 42 million in H2, with an H1 at 79 million. So quarter after quarter, months after months, The actions are paying off, and we have a reduction of the cash burn. It stems from being better at the EBITDA level. That's the EBITDA sensitivity we just commented, but it's also the control that we said we would put on recurring investment. We said we would reduce them by $60 million in April. We ended up the year reducing them by $100 million. So we put very stringent control in place. And then last but not least, there was also a focus over the year on working capital and making sure that we collect as well as we can in that tough environment. So that's on controlling the controllable and this operating gearing. If you move to the classical chart on how the RESPA has been faring in the values geography, which is the page 11, After an encouraging rebound in Q3, Q4 was very much affected by the restriction in Europe and notably to cope with all the COVID variants. Overall, Q4 RESPAR decreased by 66% and the financial year ended up at minus 62%. Now, if you exclude Europe, the positive way of looking at it is that RESPAR is sequentially improving quarter after quarter since the Q2 trough in each of the other geographies. Moving to Asia-Pacific, in Asia-Pacific, the REF PAR ended up at minus 55%. Greater China, the pandemic epicenter, recovered swiftly, and we even had a point in December at minus 12% REF PAR. So it demonstrates once more, if needed to be, that when things come back, they come back fast and strong, but the containment is fragile, and Sébastien covered that in his speech. In Asia Pacific, Worth is also quoting Australia, where the summer recovery followed the same pattern as the one we experienced in Q3 in Europe. The RESPAR was a negative minus 53%, and leisure travel notably benefited to the Mantra summer destination on the Gold Coast. So we had a good season here in Australia. If you move to Australia, to Europe, sorry, REFPA was down 63% in financial year 2020. That's a 16% point degradation in Q4 versus Q3 and the translation of the very strict lockdown that were put in place both in Germany and the U.K. early November and are in fact still in place as of today. In Germany, the REFPA dropped by 65% and in the U.K. it dropped by 73%. As for France, we end up with a slightly better number at minus 6%. 58%. We had that very strong rebound in Q3 following the lockdown release in June. And we find, in fact, over Q4, the same pattern as the one that we had experienced before, i.e. Paris is suffering more than the province, as Paris is impacted by the lack of foreign tourism, but also a more limited domestic demand towards Paris. As for the rest of the world, North America reports a respite which is falling by 74%. Here, it translates the fact that we have a portfolio which is very much exposed to mice, to exhibition, to incentive kind of fairs. And in South America and Middle East, the rest bar was down about 60%. And again, some progression month after month. I think the one point I'd like to quote, which is to some extent a detail that explains how people think about traveling and our industry, is that in UAE, so in Dubai, There was a border reopening, and then the month of December was extraordinary. So when things can reopen, you know, people go swiftly into the business opportunity, sorry, into traveling, and Hans creates for us nice business opportunity. Just have to be firmed up. So that's for RevPower. I'm moving now to the other key driver in our business, which is the network and the system growth. So, and then one slide, 12. Our node system growth was 1.9% over the last 12 months. It is a little bit below what we had expected, which was between 2 to 3, but still not a bad number. We opened 29,000 rooms over the year, with a strong Q4 at 10,000 rooms. The openings were mainly impacted by postponement, whereas project cancellation, that we monitor very closely, were really marginal. In fact, 40% of the project got postponed to further periods. Over the last years, you may recall that Asia-Pacific has been the locomotive driving our system growth. With what happened this year, this is even more true, as China rebounded more vigorously than any other geography in the world. Asia-Pacific constitutes 60% of the opening of 2020, and WESU itself delivered 10,000 rooms in financial year 20, the same amount as last year, and that's about 35% of the total of the opening for the group. A pipeline, good flow of signings. And in fact, we end up with a pipeline of 212,000 rooms, which is above the number of last year at 208 rooms. So that's also good. One KPI that we've been monitoring very closely is churn. And I am happy to report that we are very much in line with historical trend at above 2%. So 2% is about the number that we've been seeing over the last three years. It's a point that we monitor very closely because the market has a sense that bankruptcy could increase with the lowering of the subsidies coming from government. But today, the reality is we don't see that at all happening. So a very important point for development going forward. Last but not least, conversion. So they accounted for about 40% of the opening in financial year 2020. This is a number which is very much consistent with our historical level, and we think that those conversions will remain a gross driver in financial year 2021. It can be a little bit lumpy, but it will be a gross driver. If you move to the next slide, which described how the revenue has been by segment, hotel service, hotel asset, new businesses. So overall, Accor revenue is $1.6 billion, minus 55%. The reported variance is 60%, which is essentially explained by the Moventic portfolio sale at the beginning of 2020. If you look at hotel services, the revenue is down 60%. The RESPAR is minus 62%, so not much of a delta here. Looking at the subsegment, MNF drops by 71%, and I will tell to you why in the next page. And the services to honor is down 53%, and it is a smaller decrease as the reimbursed part of the costs which are incurred on behalf of the owner, the salary of the people in the hotels, do not decrease like RESPAR. As for hotel assets, revenue was down 46%. This was on the back of a 61% decline. And we see here one point I mentioned before, which is the resilience of the mantra activity, which really benefited from a good Q4 in the gold and the sunshine costs. As for new businesses, revenue is down 43%. You know, logically, the travel-related activities that are part of the new businesses, such as private rental, are more affected than the ones which are less travel-related, like the digital services like the Edge. I'm moving now to focus on the M&S revenue portion of our hotel service business, and I am on slide 14. Overall, so this M&S... Revenue is down 71% on the back of RF bar of minus 62%. Distortion here is no surprise. It comes from the impact of the incentives that we've got in management contract. So it used to be to the tune of 35% of our M&F fees, and it will end up at the end of 2020 being 15% of the M&F revenue. On a positive note, by the way, The improvement of the activity and notably the quarantine business that we've got in Asia Pacific, in places like Singapore notably, allowed us to recognize more incentives in H2 than in H1. So the 15% that I told you is much more in H2 than in H1, which is positive. Then that distortion that you've got between REFPA and revenue coming from the incentive, you will find across all regions, which is what this table tells you. So if we move now to the EBITDA, the profit of the group, you see here the overall 391 being split by segments. As for hotel services, the EBITDA is a minus 257 million, and it's driven essentially by sales, marketing, distribution, and loyalty. I once could answer the explanation on that in the H1 call. But essentially, the SMDL costs, which are typically aligned with the SMDL fees taxed to the owner with the COVID crisis, don't align, and you don't have the same flexibility, the same flexing of those costs with the fees. And that's why you've got that loss. The reimbursement costs, i.e. the staff costs incurred on behalf of the owner, remain true pass-through, as they should be. Regarding new businesses, EBITDA loss at minus 25 million, essentially the business-related activities, no surprise here. And as far as hotel asset, a good result with an EBITDA which is a positive 3 million. That I'll detail on the next slide. So moving to that slide, which is slide 16, you have here a kind of focus on the hotel asset and other activity. So the asset-led transformation of our business changed the geography geographical exposure and nature of that segment. It's essentially today driven by Australia for two-thirds of the revenue, and it is mainly the mantra businesses. You've got some residual in Europe with some viable leases in Turkey, and also for the current year, the remainder of the move-in peak leases that we saw at the beginning of the year, so that will go away next year. And in South America, like for many years, we've got the variable leases on EBITDA. Why is the EBITDA a positive phenomenon? I think we had very good seasons in Australia, both at the beginning of the year and at the end of the year. So essentially benefiting of good times at a time where the COVID was not hurting the worst. Then there were very strong support put in place in Australia for the employers, and there is a program called JobKeeper, and they've got a great job, in fact, at basically covering for the cost of the employees, and we benefited from that full blast. And last but not least, we also went through significant headcount reduction, and this is extremely true in Brazil. And so that's why, in fact, the EBDA ends up being a slightly positive number. I'm moving now to below the EBITDA line and making the bridge between the EBITDA and the net profit. So we record over the year a net loss close to 2 billion, 1,998 million, 1,988 million euro. There are two main drivers. The first one is the share of net losses of associate and joint venture. And this is really the contribution of what we've got in AccorInvest, the 30% that we've got of AccorInvest, which shows up in that line. On AccorInvest, I'm very happy to report that an agreement was formed between the banks, the shareholders, and the French government. All of that should become public in the next days. We said we would act as a rational equity investor In line with this principle, we will participate to a capital increase for an amount in line with our 30% stake. And subject, obviously, to the extraordinary General Assembly of early March, our participation will end up being 154 million euros. So there is a good deal that has been found between all parties to move ahead. On the non-recurring item, Again, no big surprise. I mean, you recall we booked $1 billion at the end of H-120 for impairment of assets, so that's what makes up most of that line. On top of that, in H-2, we booked two other entries, one on a restructuring charge for $168 million, and that's for the reset project that I'll detail later on. It's a restructuring charge for the cost of the severance. And then, on the positive side, you may recall we had received a one-off tax cash refund in July that we had mentioned, and so we recognized the P&L effect of that cash received in July in our account at Yaran, and that's to the tune of $200 million. As for financial expenses, the cost of debt is unchanged. The increase is related to non-cash items, as you will see on the next slide. Just to close the presentation on the net profit, you see the discontinued operation, significant gain of $257 million. And this gain is coming from the Orbit sale that we completed at the beginning of 2020. So we're done now with net income. So moving to the cash part of the presentation. So making the bridge between the EBITDA, the recurring free cash flow, and the net debt. So the recurring free cash flow is minus 727. That equates to a cash burn of 61 million per month. So 727 divided by 12 is minus 61. Two main drivers here that you can see on the table. First off, a large working capital deterioration of 260 million. You may recall we already added at the end of H1 to the tune of 180 million, and this is explained by fee collection deferral. The other element to understand that working capital change is that some of the savings that we put in place are in the EBITDA, but will only translate into cash in 2021, and so you've got also an element here of the working capital change, and this is notably true for for payroll, social charges, these kind of elements. The recurring investment is the second element to highlight, and I had mentioned that we were much better than the target that we had assigned to ourselves. So we had a $200 million normalized level. We assigned a target of $60, i.e. our target was $140, and we end up at the end with $100, i.e. $100 million better than the $200 million initial amount. So for financial year 2021, we will target to be back to a level in between $150 to $200 million, and that we will adjust depending on how the business is coming back. So that's on the recurring free cash flow. You see also on that table that the net debt is behaving well, as it is stable at $1.3 billion. And so there were significant cash inflow, the proceeds from Orbis, the tax cash went off, And there were some outflows, notably the $700 million recurring free cash flow, and also the share buyback that we had done back in Q1, and last but not least, the SBE transaction for $300 million. So that's why the net debt is flat, but with big pluses and big minuses. Based on the above, the Board of Directors decided to propose not to pay a dividend at the next annual shareholder meeting, which will be held at the end of April. One summary slide on the balance sheet, which is the page 19. Two things here. You see first on the debt profile that now that we've reimbursed the beginning of the month of February, the 550 million bond for which we raised the convertible in November 2020, we don't have any significant maturity before 2023. So that's a good thing. And on the liquidity, you can see that we ended the year with 4.2 billion of liquidity, and that includes the RCF. And this is, in fact, a better number than the one that we finished 2019 with, as we did strengthen our balance sheet with an additional 600 million of RCF back in May. So a good, good position here. Last but not least, I'd like to spend a few, say some words on RESET. So when we said the key message is we have our plan, exactly where we told you we wanted to be. It has been a lot of work for the organization as it is a significant rethinking of the way we do things. We had identified back in H1 some levers and like to try to give you some light on how we do it. I mean, we talked about simplification, you know, essentially to give you an explanation of what we did. we removed two regional headquarters. So there is no more European headquarters, there is no more Asia Pacific headquarters with all the costs that go with it. So that was one explanation or one element of illustration for simplification. We talked about streamlining. We have reduced, at the end of the plan, the headcounts by 25%. We talked about automation and systems. We are right now in the process of decommissioning 20% of our IT systems. We talked about frugality. We are renegotiating all our contractors and we will reduce the contractor spanning again by 25%. So these are kind of illustration of how we go and move that program ahead. And with that, the parameters that were provided back in August are exactly there. It's a 200 million recurring cost saving plan. It is less than two years of payback. And, in fact, you've got an illustration of how the savings will show up in our financials. You've got two-thirds of the savings, i.e., 135 million, that will be implemented by the end of 2021. And so if you do 135 at year-end, you started with close to zero. That means that you will have somewhere around 70 million of EBITDA gain in 2021 coming from that plan. and then you'll continue in 2022 to reach the 200 million. A couple more points, which I think will be of interest for many of you on the call. 50% of the savings are staff, 50% are non-staff, and 60% of the savings are related to sales, marketing, distribution, and loyalty. And last but not least, the implementation cost is 300 million, of which we booked 168, as I was mentioning before, in the account of 2020. That's for the financial highlight and presentation, and with that, I'll leave the floor back to Sébastien.

Okay, thanks a lot, Jean-Jacques. Let's try to finish it up and go quickly to wake up everyone. On the Priorities for 2021, you have it in front of you on page 22. It's rather simple. Number one, don't be late for the rebound. Whenever it comes, take it, grasp it. And clearly, our core is super well positioned to benefit from that rebound. Number two, whatever we promise, deliver on it. And Jean-Jacques touched upon it. When it comes to reset, a couple hundred million permanent recurring savings should be there and should be safeguarded and they will be improving margin substantially in the years to come. Number three, spend the maximum time on your loyalty program. I call it limitless. It's extremely powerful. We have a very good tool machine app. Now, it's only a matter of increased frequency, increased usage, have the most diversified experiences for those customers you know the best, which are the loyalty cardholders. Number four, It's all a matter of proving to the owner that you can open, you can manage, you can increase traffic, you can deliver results, and you have to increase your pipeline. We touched upon it very quickly. I have to tell you, was I sure that we could open 200 hotels last 12 months? Probably not, but we did. And it's very likely that we will be opening over 300 hotels in 2021 in two very difficult years. Number five, it's all about human capital, as I said. Preserve, retain, seduce your talent. Even though they work for you today, just take good care of them when it comes to health, when it comes to financial, when it comes to autonomy, empowerment. They are the best asset of this company. And whatever you do, make it so that, I guess, you're true to your values when it comes to social responsibility, planet-friendly business, get rid of plastic, food waste. There's so many things that this company has been tackling the last 20 years. It is a moment to go even deeper in those initiatives. Our own employees want it, our customers want it, and this is our role to basically preserve the planet we live in. When you come to the next page, which is the strongest asset of this company, those are the exact five, same one that we had last year and the years before, and I have no intention to change any of the five. Number one, We talked about it, the people of this company, the people in the hospitality industry at large. I am, the British would say, flabbergasted. The leadership, tenacity, humility, generosity shown from all the talents of this company at every level for the last 12 months have been tremendous, simply incredible. probably much better than I ever expected myself. 90% of the initiatives were done locally without any direction from any of us here at the central level. I am blessed. I am blessed. I am blessed. I am blessed. I am blessed. I am blessed. I am blessed. I am blessed. I am blessed. I am blessed. I am blessed. I am blessed. I am blessed. I am blessed. I am blessed. simply beautifully to what happened. The brand powerhouse is getting stronger and stronger every year passing, and we've touched upon any small. We'll talk to it in a minute again. Distribution loyalty, this is the best asset of this company in terms of technology, in terms of tools, in terms of resilience, and in terms of frequency. And clearly, we're going to be putting even more emphasis when it comes to branded card and different partnership attached to the loyalty systems of our core. Network leadership, oh yes, we are close to the best when it comes to Europe network presence, South America, Southeast Asia, Middle East, India, ACO is very, very powerful and very credible and well liked by the different government and the different owners in those regions. Balance sheet, thanks to Jean-Jacques, to the teams of ACO on the financial side, I mean, extreme rigor, very good discipline, and clearly inventing the world of tomorrow on going deeper, on preserving additional resources through asset sales or refinancing of existing debt. Our core was very comfortable last year. We are as comfortable as we were at the beginning of this year, and probably more so when it comes to additional resources. On the page 24, on the guest expectation, we've done three surveys, whether it's B2C or B2B, in between June and October, asking the guests, what would be the three criteria they're looking for? And of no surprise, the safety first, 77% of our guests are looking for making sure that we can show them proofs of protocols, policies, hygiene being put in all the hotels of our core, which is what we've been pushing for 93%, and likely 100% of all the hotels of our core displaying those assurances. 68% of the guests, want something unique, more natural, probably more on the seaside, more lifestyle, more unique, experience-driven. It's one word, fulfillment. And that is something which is key and probably expanding over the years ahead. And flexibility, of course, in a world of uncertainty, volatility, when you cannot predict the days of tomorrow, you want to make sure that you can secure hybrid meetings with numbers of people physically present in room. but many others who could not basically travel also access the same content, the same meetings. And when it comes to pricing policy, to make sure that you reimburse 100% of those daring making a booking today for the months ahead. On page 25, it's just a snapshot on safety first. I talked to you about the old safe protocol. It's not only us. It's us with the third-party providers, which you guys probably know well, called Bureau Veritas. And it was very critical for us to make sure it was not only our own label, but to be verified and tested by somebody else's as an expert. AXA, which is a very large, giant insurance company, we've done this partnership for the next three years where you have 33,000 doctors of AXA in the world, accessible within less than 90 minutes from all the different clients of our core in 110 countries. Extremely important in case you were in need of it. In page 26, it's the lifestyle ecosystem. Again, I'm sure we'll touch upon it with your question. It's only a demonstration, which we shown to you early in the months, on how big of an increase that is for that segment in our own hospitality sector. It's less than 2% of the brand new supply. It is 10% of the pipeline. And that's for the entire world, by the way. It's not only for our course. But for Accor, you see it on the right side, it is 13 brands. It's going from Faina, recently secured, to Glen Eagle, and I won't go one by one. But what's interesting in that slide, it is for the hospitality sector worldwide, 10%. It is for Accor, a much greater number, 25% of the fee stream from the pipeline Jean-Jacques talked about, which is these 212,000 rooms, comes from that lifestyle segment. It is humongous and probably increasing every day passing. There's very much to do with the expectation from your guests where they're really looking for something different. Don't discount legacy brands like the Novotel, Pullman, Ibiza, the world. They have a big role to play and you can certainly put elements of lifestyle in today's facility as we did over the last few years with music, food, and others. Next page is flexibility. Let's not go back too much and drill on it. We've talked about it for the guests. For the owners, they need to preserve what they built. They like the brand of their hotel. They like the physical aspect of what they've been putting together. They're very proud of it, as they should, and you should give them an advantage to connect to the ACO distribution technology and all management expertise. So 43% of the pipeline is really providing flexibility either a collection or a brand for them where they feel very comfortable preserving what they built and connecting to Accor. And for the hybrid, we've launched something with Microsoft, very secured firewall and many other aspects important for large organizations by putting those digital tools together with rooms of Accor in a hotel where people could meet physically. And we'll talk about it, which is a major endeavor of ours, is workspitality, is people are working remotely now. We all know that will last, and that will last probably for decades. People will go back to the offices for two or three days a week. People will need for two or three days a week to work from someplace. Today they've been working from home because they have no other options. I guarantee you there is a space for the hotel industries and for many other players to welcome people those nomads, those people who do not want to stay at home because it's too confined, because the Wi-Fi is not good enough, because there's too much nuisance with kids around, and they want to, within 10 minutes, planet-friendly again, to walk, to use a bicycle, and to go to someplace to work, as efficient as they were back to the office, and probably to meet with some of their colleagues, to meet with someone. There's no better facility than the hotel industry to provide facilities those services, those help for those nomad workers. And that would be a significant source of revenues. My last comment, which you don't have in front of you, it really comes to three or four things. It's bizarre when I say it, but I will continue saying it for a long, long time. Hospitality is a blessed industry. No question about it, even though we've been going through very bad, difficult moments. It's not a blip because it's going to be lasting maybe 18 months, maybe two years, but in a context of 100 years, that is nothing. Don't be short-term minded on looking back what you have to look forward. That hospitality is very strong, and it's very strong because of three or four things. One, leisure travel will reignite strong and fast, probably stronger than everybody believes, and we'll see proofs of it probably in the spring and in the summer. Number two, the long-term growth prospect, demography, for instance, is still unmatched, unchallenged, is still a very fragmented industry. Agro is the best ever position in those fragmented countries, in those emerging markets. It's all a matter of decentralizing, regenerating, de-layering, getting closer to the owners, closer to the customers. The world is becoming more local than global when it comes to our industry. This is exactly what Accro has built over the last 10 years. We've never been closer to the owners at the time they needed us the most. Then we have two sources of incremental revenues, and I've talked about work hospitality. I can talk to you about Ghost Kitchen. I can talk to you about different partnerships to be attached to Accolive Limited. There are so many things that Accolive should be pursuing which would be sources of revenues probably far more than what you may stand to lose on international business travel if that was to be impacted. And finally, the one thing which is comforting, of no surprise though, is the vast amount of liquidity today being available to invest to seek real estate hotel assets. I've never seen so many investors in the world chasing hotel industry, whether it's on a distress and taking advantage of the debacle or whether it is brand new hotel to be open in the years ahead because it is a blessed industry. So us as a service provider, as a manager, it is very comforting to see that vast amount of wealth really to be investing along our side on the 42 brands of our core. So my last comment is to the team. I told you I was blessed. I would have never done it without all the teams of Accor. That resilience factor and that capacity to adapt has been shown and a simple world. Merci to all of us. Voila, allez, now let's go to the Q&A.

Thank you. If you'd like to ask a question, please press star 1 on your telephone keypad. Please ensure that your line is unmuted locally. You'll then be advised when to go ahead with your question. The first question comes from the line of Simon Letchbury, calling from Stifle. Please go ahead.

Yes, good morning. Thanks for taking my questions. Three, if I may. First of all, any comments you can share with us on how we should think about the BDA sensitivity and cash burn when looking to 2021, and how you expect it to evolve into the recovery? And secondly, what's your thinking at the moment on the evolution of business travel in the future, and if you can discuss your current assumptions on the potential impact you expect at the company level? And related to this, on the loyalty program, do you see an opportunity to maybe redesign and adapt your loyalty program to perhaps capture more leisure demand in the future? Thank you.

Thanks, Simon. I'm going to leave JJ on the first sensitivity BDA cash burn question, and then I'll take the two easy ones.

Hello, Simon. So it's funny, I was not expecting that question. Just on the ABD and the cash burn, this is obviously a key question. You see that we've been improving those numbers quarter after quarter, and what you should expect is that we're going to continue to improve those numbers, you know, as we go through 2021. Now, one thing which I'm going to say which is obvious but is very important is that the capability to improve the number on the EBDA leverage, the EBDA gearing, or the cash burn, is very much a function also of the level of REF PAR that is being discussed. As an illustration of it, I'd say that if the REF PAR comes back faster than what is anticipated, you will get more incentive, and hence, in fact, your gearing will be better. It's also a function of things that I don't fully have in control, just like I don't fully have in control the REF PAR, like what the governments will do, in 2020, in the sensitivity, you do benefit from the following actions, from some of the subsidies that the government has been putting in place. As they will disappear, this is going against me. So at this juncture, and sorry, and the other element, which is very important, is the health of the world, i.e., Part of the issue of the cash burn is the 260 million working capital that I went through, working capital negative change that I went through when I did my pitch. And so depending on the health of the world and the respite, but not only that, then the people will have the capability to more or less easily pay their fees. And so that then shows up into the working capital change, if you will. So long explanation to say that we are just entering into that year, that there is still not much visibility on how all this vaccination will turn into a real, I would say, improvement of the respire. But you should assume that the sensitivity will be a tad below what we ended up the year at 18 million. And as we will progress, we'll give you more update. And on the cash burn, I think a good assumption is to think that you won't see next year the same unfavorable networking capital variation. And so between these two elements, it gives you the sense of why we think it's going to be better.

Simon, when it comes to the evolution of business travel, I'll play it very simply. 40% of Accor, I'm referring to 219 because 220 is so disorganized. It's not the same benchmark. 219 numbers, 40% of Accor business is leisure. 40% of Accor business is called domestic business travel. 20% of Accor business is so-called cross-continent international business travel. The first leg, the 40%, will go up. No question about it. How much? I don't know, but probably could go up by 5% to 15% because we're caretaking so much more for them and because of the mix of our core brands offer. The second component, which is the 40% domestic business travel, probably being factored, but no more than 5% to 10% because of digital tools, because those businesses are not too costly. for companies and most of them are medium, small enterprises seeking new prospects, new business, new clients, and they need to be face-to-face to close a deal. The last leg, which is a 20% of international business travel, there's two components in this one. One is the internal international business travel, guys from Accor Paris Headquarters flying to meet with Accor people in Singapore or in Melbourne. No question, In the near future, some of those trips will be canceled because the CEO will impose on the guy to stay physically in his office and to do it by Zoom. But the vast majority of it is those international business travels from Google, from Microsoft, coming to our core, trying to secure a $20 million deal. And I can guarantee you, if the Google guy stays in his home office and if I see the guy from Microsoft, the guy from Microsoft taking the pain to come and see me, will probably have a 70% greater chances of closing a deal with me. But one could question that probably a third of that international business travel could be impacted in the near future. So if you do the math appropriately, you probably stand to have a 10% overall impact when it comes to domestic and international business travel. Some of it will be buffered by the increase of leisure, and most of it and even more will be surpassed by the sources of new businesses that are touched upon, like unutilized spaces of our core who could generate much better revenues. When it comes to the last, which is the Loti program, yes, it is being adapted much more to leisure in multi, multi different usage. Number one, we've been signing, as you remember, partnership with AEG when it comes to entertainment, signing a partnership with Sony on music, signing partnership with chef, good cook classes when it comes to gastronomy and food, signing partnership on museums, signing partnership on sports. It's all a matter of the frequency of usage of your program, and that's exactly what we created a year and a half ago. We just want now to display it.

Thank you.

The next question comes from the line of Jamie Rowley, calling from Morgan Stanley. Please go ahead.

Thanks. Morning, everyone. Three questions, please. First is also a bit on the outlook. I appreciate you're not guiding, but back in November with the convertible raise, the company said it expected positive EBITDA this year based on borders reopening by the end of the quarter. So does that mean we're now looking at probably another loss this year? Secondly, On services to owners, clearly quite difficult to forecast that given the top line. But can we assume that that segment breaks even before RevPAR fully recovers given the savings we're talking about? And sort of adjunct to that, do we expect the need for additional OPEX into SMDL given you've got a wider range of smaller brands now? which might need some support. So perhaps some of the savings get recycled. And then finally, just on Accor Invest, you've taken a 400 million right down on the balance sheet value to 620 million. Was that the valuation that the equity raise is being done at? So can we simply add the 150 injection to get to something like 750, 800 million current value? Or was the equity raise done on a different valuation? And is the lockup on that still May 2023? Thank you.

On the Accor Invest, the lockup is 2023. There is no really, Jimmy, an impairment per se. It's the recognition of the losses. It's an equity investment. So the transition I think you refer to between what we had at the end of last year on the balance sheet and what we have currently is coming from the recognition of the 400 million of losses that AccorInvest has had at net income level during the fiscal year. There was not per se an impairment here. It's mostly the revaluations through the accounting of the net loss of the year. In terms of the STO, I think what you should assume is that we're not going to break even on STO next year. There is not enough HESPAR as we can see it today. It's going to bring the STO to a level which is a break-even level. And just to be clear, sales, marketing, distribution, and loyalty are not going to be able to flex the level of cost to a level of fees. Just by the way, a lot of people in the industry, I think people are more or less, I would say, direct on what's happening here, but you can't do that. So it's going to take more than one year in order to get back to that point. And on the smaller brands, yeah, but it's marginal. I mean, if what you think is a significant or large P&L charge, operating charge that we would take on that, the answer is no.

No, no, on the first question, Jimmy, I remember exactly my statement at the end of November, I think it was, on saying that I guess 2021 should show a positive EBITDA provided frontiers reopen by the end of the first quarter. You know us very well, Jamie. This company is fighting, and I don't change anything in the quote I had in November. My additive comment today is, in November, I did not expect confinement to be reinstalled in more than half of the countries of our core. in between December, January, and February. I really thought that frontiers may have been closed, but domestic business would have been probably remaining and still vibrant. That is not the case, as you know, in most European countries. So we'll do whatever it takes to be in a positive territory. It's all a matter of repart. And you've done sensitivity analysis. We're doing the exact same one at 62%. We minored 391. You know, and Jean-Jacques has been guiding you on that point of REF PAR 18 million BDA, do the math with me and you'll come to the proper result. It's not in my hands. What's in my hands is to try to diversify away from REF PAR activities and to find local source of revenues to get to the positive territories.

Okay, thanks. And Sean Jack, sorry, can I just come back on the STO? It was really more of a medium term question. I mean, could that break even before your REVPAR gets back to 2019 levels? Yeah, the answer is yes.

The answer is yes. And, you know, I mentioned the 60% of the reset program which is affected to SMDL. That's obviously a key element into that answer.

Okay, and just on ACOR Invest, was there an up-to-date or has there been an up-to-date revaluation you could share with us so we can think about the up-to-date NAV on that?

There is no data here that we can share. I mean, you know, to do an NAV today, it's complicated. So that's why I think we would, there is no data that is shareable here. Well, I mean, you know what?

Let me tell you something a bit different. No, no, a different meaning. I'm not going to share data with you, but I'm going to tell you as an investor, and I've been representing the board, the story is very simple. ACO Invest was in need of the 1.2 billion, 1.2 billion numbers to face the next two years of uncertainty. That 1.2 billion is known, and it's roughly, not roughly, it's $477 million of guaranteed state, $477 million of shareholders' equity injunction, $250 million each of asset sale proceeds. The later part, the 250 has been secured with proceeds from African asset being sold, Austrian asset being sold, cash in the bank. The $477 million state guaranteed, it is signed today. The $477 million cash injunction has been also met. So for all of us to look forward for ACO Invest, if you really look in 2023, 2024, the impact for the equity providers, which date of two years ago, Those guys were looking, and we shared that with you, to a 12% to 14% return on making the investment in AcroInvest a couple of years ago. I can tell you with what I know about the industry and the greatest asset possible controlling European capital cities, that 12% may end up being 6%, but that money is well safeguarded.

Okay. Thank you very much. You're welcome.

The next question comes from the line of Bilal Aziz calling from UBS. Please go ahead.

Good morning, everyone. Thank you for taking my questions. Just three from me, please. Firstly, just a bit of a follow-up on the incentives fees. Can you give a bit of an indication of how much you actually booked in the fourth quarter and which region they were predominantly in? Secondly, just on the negotiated room rates with the corporates, how did that conversation go towards the end of last year or even the start of this year? And then lastly, just on the cost savings expected this year, you've given a number of 70 million. What's the number net of all of the subsidies you had from the French government that you don't expect this year, please? Thank you.

Okay, so on the incentives, Your question is how much got booked in Q4. I'd say that 75% of the amount that was booked in the full year was booked in H2. And the amount of incentive that was booked, just to also be precise, the incentive equates to 15% of the MNFC collected in the year. So you do 15% of the MNFC, you will find $45 million of incentive. And out of that $45 million, 75% got booked in H2. So that's the precise answer on the point one. Then you had the question on, your second question, sorry, was? Yeah, the room rate. On the room rate and the negotiation, you know what's happening here is, yes, there are some negotiations, but as people are not committing volumes, in fact, the negotiation doesn't really conclude on anything. And so I think it's just something that needs to be followed, but why commit yourself on giving potential discount if you were to give discount when you don't have commitment on volume. So it's, to some extent, a little bit of a moot point right now. And then... Cost savings. Yeah, the cost savings. The 70 million from Reset. That's one I covered. The first one I didn't cover. Yeah, I think the 70 million of Reset, you wanted to know about the subsidies. I think the 70 million is... the pro rata of what you will have in 2021 from the 200 million plan in the P&L. So it's 70 million plus, right? We'll give you a date as we progress in the year, we're in the first month of the year, so 70 million is a number that we for sure commit to. Then the other part of your question is how much of subsidy did we get in 2020? I think rough cut number, 100 million is what we got throughout the various jurisdictions in the world in terms of subsidies that were recognized in our P&L as a reduction of cost on payroll. That's answering your question, sir?

Absolutely. Thank you very much. Very good. Thank you.

The next question comes from the line of Vicky Stone calling from Barclays. Please go ahead.

Morning. Just firstly on the cost savings, trying to sort of get at how permanent they will be. I suppose, do you look at it as a straight boost to your EBITDA that's going to leave your margins structurally higher than before we entered the crisis? Or do you think that as the recovery really comes through in a few years, any of that might be reinvested? Secondly, on the net unit growth, could you give us any sense on what level of unit growth you've got in mind this year? I think you mentioned 300 hotel openings, but perhaps you could put that in the context on a net basis after your expectations have churned. And given your comments on how much liquidity you see flowing into the industry today, I guess, yeah, when you see the group back to that sort of 5% plus net unit growth per annum. And then finally, some of the U.S. hotel groups obviously starting to talk about a pickup in bookings, both transient and group, for later in the year. Just keen to know if you're seeing any of that. Thanks.

Yeah, on the transient and the group, it is a very good assumption to think that you will see the miles and that part of the business coming back. This is the one which is, you know, so low today. I was making the point earlier. in my comments on North America performance, that all the big ferments that we have that really live well on convention, exhibition, incentive kind of fairs are today pretty empty. Same thing with the performance in Germany. Part of the performance in Germany is the fact that the German business is very much oriented towards fair. And so when you don't have enough of those conventions, then your business is very much suffering, which is what you see in the numbers. So it's a very good assumption to think that this part will come back in the second part of the year, Vicky. In terms of the cost saving, I mean, you know, if you make the computation, we said 60% is SMDL, 40% is ANS MNF. That will, in fact, be a boost, a permanent boost to the margin of the MNF segment of Accor, everything being equal. If you make the math, it's probably somewhere between 5 to 10 points of M&S margin improvement on the Accor business going forward. In terms of the SMDL and the recovery, today the assumption is not to reinvest. Today the assumption is that it falls through to the bottom line. Hence, the comment that we said that the 200 million is a fall through to the bottom line. As SMDL will be in a lost position next year and probably will recover only the year after, there is, in a way, plenty of space in order to get that profit, in order to boost the net profit, the net EBITDA level of SMDL. And then, you know, maybe in two years or three years, we can think about what you are pushing forward. But this is not the point today. This is not the thinking today.

Well, it's not the thinking today and neither tomorrow. I mean, I guess Vicky, you. I precisely used the three words, rejuvenating, decentralizing, de-layering. There's no way back. We don't go back on those. Those are meant to be permanent. Those were good decisions. So ACO will be stronger post-crisis than before because of all those actions being taken. And those have to be preserved and to be permanent for sure. And for the net unit growth, we were looking for 3.5%, I think.

Yeah, between 3% to 4% for next year is a good number.

3% to 4% growth, which is above 300 hotels, and it's roughly 45,000 growth room opening.

Thank you. And as you look at the progression from that 3.5% to look back to the 5%, I suppose it's hard to say at this stage, but when do you think you might be back above the 5% level?

Well, it's... It's probably a couple years later. The one certainty we have is we know we're still going to have some postponement in 2021 to 2022, 2022, 2023. But, yes, we've been announcing when GoHab was there, and it's now confirmed by Agnes, succeeding to GoHab, we should be going to the 60,000 rooms gross opening compared to the 45 we had before. No question.

Great. Thanks very much.

Thank you.

The next question comes from the line of Leo Carrington calling from Credit Suisse. Please go ahead.

Hi, good morning. Good morning. Can we just talk about Ennismore and sort of your vision for the new lifestyle division and how it fits together, Ennismore would fit together with Bionair, SBE and your other existing lifestyle brands. And I suppose to build on what you said earlier, is this about targeting conversions, noted the high proportion of conversions in your pipeline, or is it just about new consumer preferences rather than sort of – and also tackling new-built hotels? And then in terms of the Ennismore merger itself, how did it come about? Has this been a target of yours for a while or more of an opportunity – during the pandemic?

Well, Leo, thanks for asking. No, it's not an accident at all. We've been advocating for the last 10 years that that industry has known a tremendous shift in 2005, early 2000s, with the advent of social media and the ability for billions of people to share views, comments, experiences, things they like, they dislike, And all of a sudden, the street prevailed on the employers and the companies like ours. We've been pushing product to the clients of ours for 50 years, from 1960 to 2010. It's called mass marketing. We've been inventing brands, pushing those brands successfully to the hundreds of millions in this planet. And that's called Holiday Inn, Hilton, Accord, Novotel, Ibis. I can go on and on. And it worked. And you see how that's been shifting in 2003, 2005, 2010. All of a sudden, people went out of it. They wanted something vastly different, more unique, more local, more food content, better design, different in between geographies and basically adapting to different culture. That doesn't mean the segment before is dead. You just have to adapt to it. So by me saying that to you, And responding to the street, we decided to really enter a new field, which is a more daring initiative because there is no consistency, and you're in the hands of extraordinary creative brand owners like the Tregano for Mama Shelters, like Sam Nazarian for SB, like Christopher Hoffman. I can go on and on for 25 hours. And, of course, Alain Farina for Farina. And we're trying to charm, seduce them by giving them the benefit of speed and skill. and distribution of Accor, giving them muscles to show better what they actually put together, because they had basically inability to go from five properties to 25 properties, but Accor could do so with one proviso, keep those guys on board. They need to be physically there, they need to be the brand owner protector, and you basically attach to them a new organization called Any Small with full autonomy, full empowerment, because it is a different business. It requires different skills. Put together those 12 brands. We still have 13 brands. Go in each segment, because Joe & Joe is also very powerful for the kite surfers. It needs to be made affordable. And then ride along. But they have the keys. And many of those brands should remain local. Don't even ask or seek to display them on five continents, because you would be unworthy and too dangerous. But some of them, like Hoxton, like Mamat Shelter, could be displayed in many continents. So it's the beginning of a journey. I think we spotted it probably way ahead of many others, but it's a big testimony to responding to what people want. And it's true for leisure and it's true for business, by the way. Many business travelers also want to share and have that experience when traveling for business. So at the end of the day, what we're trying to create, and it will be a vast success for one condition, if you need to make all those hotel brands targeted, catered for the local community. So more than 70% of the revenues coming from those hotel brands have to do with social local hubs, has to do with foodie content, has to do with culture, has to do with design. It's meant to be for the local. Guys' business travel ledger will pop in because they know it's famous and liked by the local. So you reimburse the way you conduct your business. That's what it is.

Okay, thank you. And with Ennismore itself, just a quick follow-up, will you be disclosing or communicating what you're contributing financially and what ownership there will be of that new entity?

Sorry to say that that way. Debatable. It is an autonomous vehicle on par with two co-CEOs. The Ennismore family will inherit a third of that Ennismore entity, so of course he will have his own P&L. We'll decide in the next few weeks how to report all the numbers to you by the end of June, because you probably noticed that I guess we've been reshifting the organization on the eight different hubs. They also have full autonomy. and then we're creating any more as not a distraction, but as something which is of a different autonomy. So give us the benefit of the next few weeks on making sure that we report to you correctly for the first semester the new phase of this new organization. We'll have to do so anyhow.

Okay, great. Thank you. You're welcome.

The next question comes from the line of Alex Brignol, calling from Redburn. Please go ahead.

Morning. Thanks very much for taking the questions. The first one is on loyalty and distribution. Last year, you disclosed member numbers and loyalty contribution, and I know the denominators are messed up in 2020, but I wonder if you could just talk about what happened in those figures. And what impact, I guess, more broadly, a shift from business towards more leisure would have on that and on distribution. The OTAs have typically been a lot stronger on providing leisure traffic. So I just wondered what impact that could have on the future, positive or negative. And then secondly, on the pipeline, I guess a couple of questions on it. The first one is, have the measures taken with Accor Invest affected any of their future growth plans. And the second one is, I guess, more of a holistic one. Post the financial crisis, growth kind of slowed down to practically nothing, particularly in the US, but other regions also sort of four years after the crisis, after everything had been planned, had already been built. It seems like everyone's talking about growth bouncing back. So I wondered whether We just don't think the same will happen this time. It seems a more structural change has happened in terms of actual demand for travel. So I wondered sort of why there should still be the same level of hotel construction and why it would be different to post the financial crisis. Or perhaps it's you are taking share and others will not be growing. So any kind of high-level views on that would be fantastic. Thank you.

Well, that's a big list of questions, Alex.

On the loyalty... is being increasing over the last five years between six to eight million new members per year. At the end of 2019, we had 64 million our co-living limitless members. That number has been increased by four million to 68 million at the end of December 2020. Seriously, I would have expected less than four million increase because we basically had zero traffic, but we spent so much time, effort on all at home cooking classes, giving music experiences. So we actually connected with many people, even though they were not using and spending and burning miles. So quite an achievement on behalf of the team. So we should basically recoup that 7 to 8 million pays of new members the minute the hotel reopens. And probably I'm more positive, optimistic than ever because of the content of the Airco Live Limitless program with all the partnerships being signed and announced with Visa and with BNP and with music and sports and many different categories in which people can actually burn their minds. When it comes to ZOTA and the traffic and leisure, you are absolutely correct. The one thing we'll have to master the best, and it's going to be a difficult one, I have no doubt that, I guess, Expedia Booking will spend billions of dollars in search words, keywords, trying to basically secure it. customer acquisition at the same time all of us will be back in the field. We mastered it pretty well in 2018-2019 by protecting the direct. It's very much interconnected with your first question on our call of limitless. The best tool we have to battle again the OTA is not to compete with them on buying keywords because we don't have the same amount of wealth. So it's really a matter of repeating on retaining existing clientele of ours and on increasing those lifestyle, because I can tell you for the Faina, for Rixos, which is all-inclusive, for Hoxton as well, there are very, very few dependencies. There are very few dependencies with the OTAs because most of their clientele, 75%, 80% for Rixos is over 85%, is direct customers, repeat customers, because they don't need to go to bookings. to book on a Hoxton or on a Ricks or on a Farina. So which is also why we're going into those brands with a high recognition and a higher loyalty rate. So concern, yes, but let's be very disciplined on not competing on the wrong metrics because otherwise that's a lost battle. But that's okay. The traffic they increase will be a beneficiary of it. When it comes to ACO Invest pipeline, yes, you're absolutely correct that renegotiations of ACO Invest balance sheet and the billion two I referred to, of course, has an impact on ACO's investability to grow over the next 24 months. That's being already basically put in place on the estimate I gave to Vicky earlier today on the 3% to 4% growth. That accounts for virtually nothing from ACO Invest. And ACO Invest, as you know, is 85% European-centric, and most of our growth is coming from outside Europe. So watch out, but somebody else will replace Accor Invest. Most of the franchises, the franchises of Accor in Europe will probably take advantage of Accor Invest, not shooting capital and then using their own wealth to provide new brands, destinations for Accor. And on the hotel construction and the contribution of growth to the EBITDA and bottom line, yes, you're correct as well. It's all a matter of churn and you probably see that very clearly. If you have 2% or 1.5% of your hotel churning away from you, you lose immediate management fees on those hotels leaving the network. And it takes 18 months to 24 months at a minimum for new hotels to be open to really come up with the same level of fees that you've been losing for hotels being with you for 10 years. So there is a lag effect, which is usually 18 months to 36 months. So for us, for 2019, for 2020 and so forth, We don't, 2021, we don't expect net EBDA positive because of the churn activities for the last two years. The one thing which is a big caveat here, and true emphasis on my part and on the part of the team, I cannot stress enough how much we've been diving for the last nine months, taking advantage of slow time, on really dissecting contract by contract What is the profitability of every single management franchise contract of Accor? That company has been unfortunately too much driven by absolute room growth number, which is a stupidity. And that's one of the things that I need to do with all of you and my board members and investors. Whether it's 3.5%, 2.9% on 5%, it is absolutely irrelevant. What counts for is how much EBDA transformation do you have bottom line? for your investors the rest is rubbish and only volume driven numbers which makes no sense so we've been revisiting for having a new hotel managed in the middle of let's say turkmenistan living for the last nine months taking advantage of slow time on really dissecting contract by contract what is the profitability of every single management franchise contract of our core that company has been unfortunately too much driven by absolute room gross number, which is a stupidity. And that's one of the things that I need to do with all of you and my board members and investors. Whether it's 3.5%, 2.9% on 5%, it is absolutely irrelevant. What counts for is how much EBDA transformation do you have bottom line for your investors. The rest is rubbish and only volume-driven numbers, which makes no sense. So we've been revisiting for having a new hotel managed in the middle of let's say Turkmenistan, it's probably very difficult because the cost of managing a new hotel in Turkmenistan is far more than the contribution from that hotel. Having another hotel in Paris in which we have 300 of ours, that is direct contribution. So, sorry, that's a long answer to your question, but you are correct. What I'm looking for is profitability per contract and not room counts. Thanks very much.

The next question comes from the line of Richard Clarke calling from Bernstein. Please go ahead.

Good morning. Thanks for taking the questions. Jean-Jacques, you're on the press this morning talking about you're expecting consolidation happening in the hotel industry eventually. Just wondering what form you think that will take and how Accor takes place in that and whether you're still optimistic about some of those big block conversion deals you were talking about earlier in the year.

Richard, I left Jean-Jacques alone. for like 10 minutes this morning and hear what he said. So thank God I've heard the last part of it, which is the echo is not playing into it, but I'm laughing and smiling when you ask a question. But I'm going to leave it and give you his answer.

Okay. I'll ask the other two questions afterwards.

Oh, you want me to answer that question? I mean, him and I. Why don't you do it? You do it much better than me. No, I mean, on consolidation, Richard, I won't teach you anything. I mean, you know that industry as well as I know it. I mean, there is plenty of space for consolidation over time. The question is, what is over time? And today, frankly, I'll come back to the comment that I've made all over the year. I mean, the one thing that we need to do is focus on dealing with the situation that we are faced with, and there is plenty of work which is to be ready for the rebound, all the things that we'll be discussing, the loyalty, the lifestyle, the reset, making sure that we've got the right people in the right place to rebound. I mean, to basically go into those kind of thinking, I think, is not the right time at all. I don't know if I can be clear on that. No, but I like the shift, Richard.

I mean, you see, I started seven years ago by being the daring and risk-taker and consolidation and acquisition person. And Jean-Jacques was a disciplined, focused, rigorous, and we're shifting. I'm becoming the disciplined, focused, rigorous, and becoming the audacious guy.

Can I defend myself? I won't do it publicly.

Okay. Any other questions, Richard, that we can answer you? A couple more. Just with the sale of the wazoo stake, I'm just wondering whether you can just update us on your sort of long-term ambitions of how you see a court in China, your relations with a wazoo and Xinjiang and that as well. And then my third question, which is going to really be a sort of point of clarification, your registration documents. there's a comment that on your management contracts, if you don't generate 85% of budgeted EBITDA, D-A-R, for two consecutive years, you go into default. I just want to confirm that that's not a risk on any of your management contracts going forward.

When they're going to dig in on the second one. On the first one, Richard, ambition in China are huge, but it's a matter of methodology. we say that China likely will become the largest hospitality market on this planet, probably 20, 25 years from now. And you've seen the speed, the skill of the deployment of three actors, Jingjiang, Wazhou, and BTG, which is Beijing Tourism Group. Two are state-owned, Jingjiang and BTG, and one is entrepreneur-led, which is Wazhou. Wazoo had, 10 years ago, 20 hotels. As of last night, 7,000 hotels. And they're opening between 800 to 1,200 hotels per year, far more than any of us as Western operators. And it's not going to stop. They are only replicating what happened in North America in between 1960 to 1990. So it was 30 years of immense growth. They're exactly doing the same. It's just with a greater and a bigger market. So don't bet against China. And not only are they doing so, but guaranteed they will occupy the space and the three Chinese players will be occupying probably more than 50% of the supply in America, in China, exactly the same way that the 6% U.S. players are today consolidating 80% of the supply in the U.S. So they just piggyback on what worked elsewhere. So when you say that, there's another element, which is the largest emitting market today happen to be Chinese travelers, which is roughly 130 to 150 million travelers, of which 85% of them stay in the Pacific. They go to Korea, they go to Japan, they go to Southeast Asia, they go to Indonesia, Malaysia, and only 15% of them go to the Western world. And that 15% will increase with more comfort zone and better experiences. So you need your brands to be visible in China because that is a huge market and you need the Chinese to enjoy and to know the existence of your brand to make sure they will choose yours when they go elsewhere. How do you get there when competing with people with greater muscles, better local knowledge than you that you do? This is what we started four years ago where I told you and the board of directors company that when it comes to economy and lower mid-scale segment, we simply can no longer compete with them because they're going to crush us. And we decided to pick a horse, in that instance being Wazoo, and we decided to give a master franchise to Wazoo on IBIS. And it worked. And I was looking for 350 hotels opened by him in four years. They already opened 300 hotels in three years and opening another couple of hundreds. And by doing so, we've been smart enough. to accept to be paid in shares actually to ask to be paid in shares this company as opposed to be paid in cash for the master franchise and yes that couple hundred million became a billion two and his company went from billion five dollars valuation to today 19 billion dollar valuation so it's uh we're only starting to learn the ability the professionalism the strengths of those chinese players Just, yeah, respect. Respect for them and just make sure you find the next best methodology for you to continue to exist in China, but very likely in partnership alliances of those who know better. Those happen to be Chinese operators. And it will be a different answer on different segments. It won't be the same answer for Raffle that it is for Nibis, or it would be for Lifestyle. Some of them you want to preserve autonomy and empowerment. So, sorry, it's a long answer. But I'm happy to spend a couple of hours on you because it's a fascinating territory in which you cannot be absent for the reason I just evoked.

Just on the second part of your question, Richard, the clause that you refer to is an example of a clause that you may have in contracts, but as you know, contracts are different one from the other. It doesn't change the fact that on the answer on that specific case is that there is no risk as we've been able to invoke force majeure. So basically, as there was force majeure coming from the situation as it is, all those clauses are in fact not valid in the current time. So that's the answer. So there is no risk. Great. Thanks very much.

The next question comes from the line of Stuart Gordon calling from Barenburg. Please go ahead.

Yeah, good morning. A couple of things. Just firstly, on Accor Invest, would you be able to share with us what the EBITDA was for 2020 and also what NetJet was at the end of 2020? Secondly, I think as you point out on your slides, China's GDP has rebounded very healthily. I think we're still looking at sort of low-team growth. declines in rev power, would you think that that's a reasonable baseline when we think about recovery elsewhere around the globe? And lastly, just in the works fatality, I think you referred to it as, what discussions have you had with corporate clients there? Because intuitively you would think they would be reluctant to pay for office space for staff and then pay for them to have a separate office, even if it's one or two days a week. So what discussions have you had with corporate clients on that? Thanks very much.

Sure. On AccorInvest, I will leave Jean-Jacques and he will tell you, no, we can't disclose the numbers of a private company.

Yeah. And in fact, what you can do is the percentages that apply to AccorInvest are no different than the percentages that apply to a REIT. So you will find exactly the same pattern in terms of how the number is used. And we have been giving you in previous presentation what kind of the EBDA was in history of AccorInvest. So if you take the pattern of the REIT, you know, profit reduction in the current year and apply it on the basis which is the historical basis we provided to you, you're close to the number. And we can take it offline if you want. But I can't disclose those numbers publicly.

And Stuart, on China, you are correct. We expect, well, actually, I expect low teens REF bar for 2021. But seriously, I don't know whether it's going to be a minus five or plus five. It's coming back for China. It's coming back strongly. It's been tough for January, but they've shown us the speed at which they get back to almost positive territory in between August and December. The big question is not really the REF bar, whether you are a minus 10 or plus 10. The big question is the mix of that ref bar. You know that you need 50% pricing within the mix in order to get profitable margin and to basically go bottom line. If you are 80% occupancy ref bar driven and 20% pricing, then it's great because you show a pretty good ref bar, but it costs you so much more to operate a hotel at 95% occupancy when you have a low pricing. So what's happening today in China, which is why we have to be cautious when we talk about only a ref bar, since the frontiers have been closed, the pricing is low. They have a better occupancy and they achieve an okay ref bar, but it's all domestic clientele. So they need international fueling clients to pay more for the same room to have a better mix on the ref bar. So it's just a word of caution for you is make sure that you try to dig in on the ref bar component between occupancy and pricing, but, but I, uh, yeah, they will be back. And the minute the frontiers we open, uh, they will be probably even better territories when it comes to rare part, because many of us need to go back to China for business. And I'm the one, certainly the ministry open. I need to go and sit down with Jim John and sit down with a wazoo and sit down with my team because it is a huge land of opportunity in terms of expansion. When it comes to the hospitality corporate lines, you're also correct. It will only work provided you offer those corporate clients in which we are conducting negotiations through Wojo, which is a company we own 50% of. We're having the other 50%, which is a co-working operator, actually the third largest in France that we started three years ago. It only works if you can show and prove to the corporate organization that by him reducing his long-term commitment on existing leases, so getting rid, let's say, of 15%, 20% of the existing spaces he contracted for by letting go 20% of his obligation, you basically find him the spaces for his people to use and knowing that he won't go back to the office, he can let go 20% of his long-term contract obligation. So it's a win-win. Win for him because he's lowering his rental cost and it's a win for me At the lesser cost for him, of course, for occupying two hours one day a week, the current facilities at virtually no cost for the hotel owners is because they don't have to refit the current premises of unutilized space. But you're correct. It has to be demonstrated that he could be lowering his rental cost obligation, which is the case.

Okay. Thank you very much.

Do you have a question? The next question comes from the line of André Julliard calling from Deutsche Bank. Please go ahead.

Good morning, gentlemen.

You just connected or you've been asleep for the last hour?

I've been waiting quite a lot, to be honest. But happy to have you. So my first question was about distribution and the partnership you had signed with Sabre. Could you give us some more color about what is going on and how you plan to manage the evolution of your reservation system? The second question is on the switch between corporate and leisure. As mentioned several times, leisure is expected to rebound faster. What do you plan? to do in terms of pipeline? Do you plan to focus more on results development? Do you plan to change a little bit the supply, the existing supply to better address the leisure clientele, et cetera? And the third question is about any small on the lifestyle segment. Could you give us some more color about the pipeline, the evolution of the capital in this structure, considering that you still have the funders in most of the brands? You were mentioning that it was important to keep them on board, but will it be the fact for the future or not? And same thing in terms of development. Will you develop some more resorts in the future, or will you continue to mainly focus on cities? Thanks.

Okay, Monsieur Ambré.

Faber, we've made an announcement in April saying that because of COVID and uncertainty, we made a pause on putting together what could have been an in the cloud, PMS, CRS-connected software. So we haven't reengaged with them as of now because of actually the uncertainty and volatility in the market. So in terms of priorities, we focused on reset, on changing the organization, and many of those aspects that you will understand. So when it comes to the switch from corporate to leisure, No, the switch is really in the mind of what I've talked about, which is four years ago, thinking that we should be going more into that lifestyle, local, social hub component, which happens to be Ennismore. And within Ennismore, you'll see some urban capital cities, and you'll see also some resort destinations, and you'll see huge food and beverage content, which is also part of what we've been doing with Spice Society and many others. Is there any new priorities on adding greater numbers of resorts? Not really, but I'll touch upon something very different. There is certainly a greater emphasis today on all those natural places that we do have in the 5,139 hotels of our core. Many of those happen to be on the mountain, in a vein next to the water in some extraordinary sites. And we should be revisiting the type of the clientele looking for those facilities and probably be a better curator on behalf of those hundreds of millions looking for those different experiences than you've seen in America. And that's a big push for us. So it's just a revisiting of a better targeting clientele for those existing hotels of ours. When it comes to Ennismore, they have today, and we said it in the press release, they have today 73 hotels up and running. Actually, it's 73 plus 10, I think 83, it doesn't matter. Plus or minus 80. There is 100 to be opened, signed either under conversion or under construction in the next two and a half years. And there's another 120 in the pipeline today in which we signed an MOU or measurement contract. So you'll go very quickly into from 80 to 180, that is absolutely secured, and you'll go to 300 in a matter of four to five years in 40 countries. So it's a very significant endeavor. And as I told you, in fees, the fees per room of those facilities is three times the amount of the average fee per room for the existing network of Accor. On the funders, with a notable exception of Charan Parisha, which is the Ennismore founder and owner, in which I told you he's going to be narrating when we close in a few weeks roughly a third of the combined Ennismore entity. The objective is on all the existing brand owners like the Trigano, like the 21C family, Sara Lee and Christopher Hoffman, within 24 months, 100% of that ownership will be in the hands of Accor. So we're gradually, as committed, going all the way and buying every single owner, but they will be remaining with us as what we call a brand protector in a three- to five-year contract. But they'll be out of risk, personally.

Okay, thank you very much. Just coming back on... The Enismore model, you were mentioning that the fees were higher compared to the rest of the hotels. Does that mean that you've got also a higher level of capex and refurbishment to be done more often on them or not?

No, absolutely not. First, a fresher product, but it's the same 2.5% to 4.5%. of CapEx per year, of which two-thirds is maintenance and one-third is refit. No, it's the same parameters.

Okay. Thank you very much.

The next question comes from the line of Thomas Beavers, calling from StockViews. Please go ahead.

Good morning. Two questions from me, please. Firstly, just on the recapitalization of Accor Invest, just wondering if you provided any information concessions on fee income or any quid pro quo in relation to that deal. And then secondly, just on the deferral of the fee collection, can you give any sense of if that's when that might start to unwind or if that is still likely to build up over the course of 2021? Thank you.

Just on the fee deferral, I mean, the The issue is that's a little bit what I answered before. The one portion which is difficult is to figure out the speed at which the subsidies from the various governments, the loans which are done to companies which are in trouble, knowing that you don't talk of one country, you talk of many, many jurisdictions. And some of them were surprises or surprisingly supportive, just like I was mentioning Australia, been extremely supportive. So the question there is how and at what speed will that support be there? And I think that's going to change the capability of some people to basically have the liquidities to pay you the fees. So, you know, we need to see how this develops. As I've told you, my assumption is that there is no more networking capital degradation, which is an answer to your point here.

Thank you. And on the first question about the recapitalization?

Thomas, we touched upon it. I actually gave pretty specific numbers. The numbers are the following. Total recapitalization of ACO Invest is $477 million of new money, of which ACO's share would be $154 million. And then you have the state guaranteed loan of the same amount, $477 million. And on top of it, you have asset sale proceeds secured of 250 million-ish for a total of 1.2 billion, which is far sufficient to buffer any volatility uncertainty for the next 24 months ahead.

My question was actually whether that deal involved any concessions from you on the fee income side.

The answer is no. The answer is no. We did not. If your question is did we reduce the fees that we've got with AccorInvest, the answer is clearly no.

No.

They tried. They tried. They tried, but we prevailed. And then AccorInvest is no different than any other guys on the planet, i.e. they are part of the deferral of fees that you see in the working cap, and so we just need to work with them to get paid. Okay, great. Thanks.

Thank you. Sorry, I missed your point. No, no. Go ahead.

The next question comes from the line of Luigi Alghissi, calling from Wells Fargo. Please go ahead.

Good morning. Good morning, Luigi. You mentioned earlier that it seems there is a quite high level of interest from investors on hotel assets. And I was wondering if you could give us a bit more color on where do you see, in terms of geographies and urban, suburban locations, And what sort of valuation? I haven't seen a huge amount of transactions so far, but what sort of valuation are you seeing compared to pre-crisis level? And the second question, if I may, is on the 40% domestic business travel that you mentioned, of your exposure to domestic business travel. I was wondering if you have a breakdown of that 40% between... more SMEs and essential business travel and what is maybe more large corporate sort of auditor consultant type of domestic business travel. If you have a bit of a call on that.

You know what Luigi, I would be, uh, I would be actually very much interested in myself to have a better granularity on the 40%. I'm sure we have it. I don't have it handy now. Um, I think it depends so much on countries. I'll give you an example. We have over 250 to 300 hotels in Brazil in 80 cities. And I can tell you for Brazil, domestic dependency of our core is 80% small companies basically occupying those 80 tertiary, secondary cities in Brazil. So I think the answer would be vastly different when it comes to different destinations. But I would say more than half happen to be non-large organizations because of the diversity of the ECRA network in so many secondary tertiary cities. But we'll get back to you on this one because it's a very interesting question.

And just, Regis, so that we don't capture when we talk to our customer necessarily what business they're in. So if they have a card with us, we know that, but it's not the data that we capture on a systematic basis. So that's why, you know, we don't have like a straight answer on this one because we always do it through sample but not so much through mechanical quantitative collection of the information, which I'm sure you will understand.

On the investor hotel assets appetite, it's, again, super vast. You have still enormous appetite from the GIC, QIA, PIF, all the servant funds. of Asia and Middle East, I see a lot of buyers of hotel classes and still putting a lot of money at work when it comes to development, which has a lot to do with creating new destinations within their respective geographies, certainly for Saudi Arabia and some single people to buy, by the way. There are very few assets being sold in a crisis mode. I mean, you probably find a few in Paris, probably less than 10, and those, of course, being sold at 50% lower valuation than pre-crisis because of distress and because of inability to cope with the crisis. But as Jean-Jacques said earlier, we haven't seen any of it yet because of government subsidies. Many people who could have been in default are not showing that default today until they have to reimburse that state-guaranteed loan, which could be six years from now. But the new investors, when they pop in, on terms of replacement value, they pay the exact same pricing that we had prior to COVID, expecting the same 2% to 3% return for luxury property, 4% to 6% return for mid-scale property, 8% to 10% return to an economy property. And it's very much in correlation to the value of the land and the preservation of your asset. If you have a luxury hotel in the middle of New York or Paris, that hotel will be also – worth a lot of money in the years to come because of the place it occupies in the capital city. If you're in the middle of nowhere with an economy hotel, you want to have the maximum cash flow, cash on cash, because you might be in the middle of nowhere for the next 50 years. Thank you. Okay, we have a last question, and then we need to go on a different form. Sorry to impose that on you, but I don't know whether we have a last one. I think from Jaffar.

Correct. The final question comes from the line of Jaffar Mastari calling from Exxon. Please go ahead.

Hi, good morning. Thank you very much for sneaking me in before the two-hour march. This too, if that's okay. Firstly, when we build an EBITDA bridge for, say, 2023, should we still consider including some of the previous buckets, such as the 75 million loyalty benefits, the 30 million digital losses going into break-even, maybe some remaining hotel assets, portfolio management, or is it more realistic to assume that the reset... cost savings plan, as the name could suggest, is basically replacing or consolidating most of those. And a very quick one on One Fine Stay. Just curious what happened in terms of your listings. Did owners come to One Fine Stay more because they needed the cash to pay for their assets, or did you see some of them leaving One Fine Stay because putting up the property for long-term residential rental is more attractive right now?

I'll start with Jaffa on the second one, on one point. It's a difficult answer to a simple question.

There is an increased demand for private homes, private apartments. People feel safer, and it's being demonstrated with the pace and the growth of Airbnb going forward. I have no doubt that One Fund Stay is the purest and the best brand when it comes to that service. The caveat I have has a lot to do with the cost of operating those private residences when it comes to capital cities. It is cumbersome, and I told you so, and the acquisition cost of the client, when you coupled it with the welcomers, the staging, the restaging, That cost is very close to the rental income you get from the owner. So the owner is satisfied because he has a very nice guest, and ACO is a curator and a caretaker. The guest is very happy about his experience because he's enjoying somebody else's home with ACO's benefit. I'm not the happy guy because I don't make enough wealth out of the system, and I really need to. It's a different metric. When it comes to secondary homes, resort places, because you have much less personal belongings, so far less cumbersome when it comes to staging, restaging. So I need to come up with a fine methodology and recipe on further developing One Fine Stay, which I want to do, but probably with a different business model. And I need to crack it. And I have to tell you, over the last nine months, on the top ten priorities, I was not part of the top ten. but I have that obligation because I love the brand and the service.

On the EBDA bridge, I think, Jafar, maybe one way to look at this is the following. Whatever were the bricks that we had identified when we did that session with all of you on the Capital Market Day are, in fact, valid bricks, and the intent, the strategic intent on each and every of those bricks is unchanged. You know... You had one which was the operating leverage, if you recall the presentation. And in fact, what we do reset here is nothing else than the operating leverage, but with a different scale, even in fact deeper because of the crisis. So I would say that this is an improvement versus what we had been thinking in 2018 on how we can grow and create value in that business. On the other hand, some of those bricks are a little bit on the back burner. I mean, a very good example of it is Mantra. You know, you can't sell Mantra today because of all what's happening, but the intent is unchanged, i.e., we want to move that asset-light roadmap and make that balance sheet being simplified and that business model being much more hotel service-focused, and so we'll go and do it when it makes sense. I mean, we've been feeling the brand's of the decrease of fresh power, you know, we're going to hide a little bit the increase of fresh power with Montreux to the point that, you know, it's a sellable deal. You know, and then after that, the two other points that you had mentioned, I mean, the loyalty, you know, obviously nothing changes. I mean, the loyalty is something that we really have to go and pursue and You know, Sébastien gave you some numbers on the increase of loyal customer. The 75 million that you refer to is just deferred in time, but the intent of us moving from 30% of loyalty base of customer to 50 plus is exactly the same. So the timing will be different for sure, but the blocks are the same. Some of them will be deeper, and some of them will be changed because of what's going on in the world. I agree with JJ.

Gentlemen, mesdames, allez, on va prendre un café, nous. We're going to go for a quick coffee. Ou une mandarin, un truc comme ça. Love you dearly. Thank you so much for taking the time and to capitalize with us. It was essential for us to hear what you had to say. And we're going to be battling for a better year in 2021, for sure. And make sure we can surprise positively. our customers, our owners, our investors, and all the employees of our core. Merci beaucoup. We'll see you probably soon enough. Ciao, bye-bye.

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