Accor Sa

Good morning. It's 8.30. I don't even know the date of today, but we do announce the year-end account for 2021. Jean-Jacques is next to me, which is not a surprise. So we're going to go not rather too quickly, but we're going to be spending our time on sharing the results for 2021, sharing some sentiments for 2022, and of course, we're going to leave some place for the Q&A. So when it comes to, and I'm happy that I guess you're joining us on a call, and I'm of course sad that I guess we cannot again do this physically, because I do miss many of you. So on where we sit and what we feel, the first one is extraordinarily important because it is the underlying, this is the This is the base of our industry. Travel desire has never been stronger than what it is today. You've seen it. We have noticed it since probably April of 2021. People want to travel. People are eager to actually probably spend more for a better experience. So our industry is still blessed and will be still blessed for a number of years. Planet is a must. Many of the travelers, many, if not all of my different employees, wherever they sit, in the headquarters or at the hotel level, true consciousness on preserving the planet, on acting responsibly, on contributing rather than compensating. It's a must. We've been doing it for the last 25 years. We are extremely proud of all the things we've done for the last 25 years. We're just encouraged to do much more and to give examples to many of you. Live and work from anywhere. This is probably the new norm since COVID. Clearly, there is a true capacity and efficiency for people to work remotely, which has direct consequences for hospitality business. We have more and more locations, i.e. people leaving on a Thursday night, going for four days, wherever they choose, and ability to work extremely efficiently and easily on that Friday, on that Monday, and coming back. on Monday night or Tuesday morning. So it does increase by one or two nights the weekend. And therefore, people staying in different hotels, probably fairly close to where they are, usually less than four hours trip from their domicile. New booking patterns, pleasure. It's a lot of people are now looking for probably a lesser number of trips, but for a longer trip, probably a couple of days more than pre-COVID. And clearly, as I've talked to you on Live and Work, mixing very happily, so leisure and business. rise of premium leisure experiences, you have many more people looking for secluded natural destinations away from everybody else, discovering whether it is a culture, discovering gastronomy, discovering other remote places, and probably and surely paying more for those experiences. So there's a price effect here, and there's also for us to reconsider probably destination we haven't spent enough. And clearly it's a land of opportunity for us on basically catering for those customers. And reinventing global events, that's a big endeavor. We've seen lesser numbers of global groups, events, more than 500 people, has been very difficult to organize for reasons you understand. But we've seen many different large companies doing 10 different cities, groups of 50 people for the same organization as opposed to gathering everybody together in one large city. You see a lot of hybrid meetings of people mixing together physical meeting with 1,500 people and having different satellite officers connected through digital to the same event. So it's another way of thinking. We have to be prepared to have the flexibility, but it's very encouraging. People need to be bonding together. They need to paddle together. So we have seen the last six months, and you're going to see even more in the next six months, of many, many different groups being together, either hybrid or physically, which is a great... a great product and a great offer for us, a great demand, sorry, for us for the next months ahead. That one is, we made it easy for you and for me. And I'm going to go rather quickly, rather slowly, sorry. It's go first with the bottom of the page. The bottom of the page gives you an indication you probably know about, which is very important. 20% of ACRO revenues for the last few years has been on international business travelers. On that 20%, you've seen, and let's start with the light blue color, which is 2022, which is the 10 months ahead of us. Unfortunately, the way Oxford sees it, which is shared by many of the STR, MKG of the world, it's still probably close enough to minus 50% compared to 2019. And I hope it's going to be better than this, and it's going to take probably another three years to get back to 2019. You see even the green for 2024 is still below 20%. of the 2019 pre-pandemic. And that could probably last forever because of our capacity via Zoom WebEx Teams to be able to connect yourself without going on to a very long journey. On the right, you have 40% of our core is domestic business travelers. That one is certainly more encouraging. That is narrow-body airliners. It is less than four hours ride and in less than two nights stay. So far less cumbersome in terms of pricing and in terms of fatigue. And you see the light blue. So much better than international business travelers. It's probably a minus 10, minus 15, but we could be happily surprised of that rebound being quicker. And you see very clearly that 2023 will be above 219 on that less than four hours ride. domestic business. Then you go to the right side of the slide. 40% of Accor is leisure dependent. And there's two things here. On the international front, no surprise because of the agony of crossing the frontiers with all the paperwork you still have to do. Probably it's going to be far less cumbersome in the weeks ahead because of Omicron being hopefully behind us. But still, the light blue for international leisure is still probably 25% to 30% down compared to 2019, but very quick rebound in 2023-2024. And there again, I believe for our core, 2023 will be back to pre-2019 levels. So I'm certainly more optimistic that that slide is showing. But let's go to the far right, which is a domestic leisure. And here, for almost a certainty, and we've seen it for the last three months of 2021, 2022 will be better than 2021, than 2019. And here it is, 708%, probably going to be better than the 708%. So a very clear light of sight on us rebounding on that domestic leisure, which is, again, less than four hours and people discovering their own country. And we have fascinating countries for people to visit. On the business highlight for 2021, we, of course, have done a lot of things for the last 12 months, and Jean-Jacques will talk to you on all the great things we have done on financial discipline, rigor, drop-through, and many other different items. Those are not financial in nature. On the rebound... I just mentioned it, so I'm not going to go back to it. We have a strong rebound and pattern demand for travel, which is why pricing in December of last year, only three months ago, were already better than the pricing of 2019 across our core network. So clearly encouraging. You may not have the occupancy, but you're going to have pricing advantage in the next weeks, months, and years ahead. The appetite for new experiences, I touched upon it, we have to be thinking out of the box. We have to go deeper on augmented hospitality. We have to go deeper on local community, on food and beverage, on wellness, on many of the things that people are desiring to discover. Signed opportunities, two major events ahead of us for the next two years. Accor has signed a very strong partnership on booking for the Rugby World Cup to be held in France in 2023. And of course, Accor has signed also a very big partnership for the Paris Olympic in 2024, where we're going to be helping on many hospitality features and being the preferred hospitality partner. And signed as well a lot of partnership for our colleague Limitless, whether it is Sixt, a car company, a car rental company, Qantas, and many of the things we have done actually a couple of days ago with CIMB in Abu Dhabi on a co-branded card. Consolidated brand powerhouse, Enis Moore, took us a lot of time to assemble the 14 brands and lifestyle entertainment platform, done, successfully done, and moving forward extremely successfully. New luxury soft brand emblems, and the first one being signed in China and Orient Express, you might have seen, very much in correlation to what I told you about new experiences, we have signed a superb partnership in Italy on a Dolce Vita Orient Express train with probably a dozen itineraries with six trains. to be happening and for you to experience as early as July 23, meaning you have to book by July 22 because it's going to be fully sold out 12 months in advance. So interesting feature, and this is clearly where our core needs to be, which is within a hotel, outside the hotel, for the benefit of our guests. Monsieur Jean-Jacques.

Okay, thank you, Sébastien. Good morning, everybody. I'm very happy to be with you today for this 2021 result presentation. Just as an introduction, we did all this presentation for the sake of clarity, comparing numbers versus 2019, and this is to ease the understanding of performance because of base effect variation. As for revenue and EBITDA, we provide variation versus 2020 and 2019 in the comment when it is relevant. Without further ado, let's move to slide eight, which is the complement to what Sébastien talked on, 2021 business highlight. This is the financial part of it. The full year figure reflects a significant trading improvement compared to 2020, fueled by a recovery of demand and solid operational execution. REVPAR has improved sequentially, month after month since April, to reach minus 46% for the full year, and this was supported by a very strong pricing power. We'll get to that. Net unit growth was 3%, which is in line with our guidance. All over, this translated into a 2.204 million revenue, which is an increase of 34% versus 2020 on a like-for-like basis. In the meantime, and this is the right part of the table, you can see that we sustain a strict operational discipline. And we did that with KPI that are better than guidance. EBDA was back into positive territory. for the full year at 22 million. This translates, in fact, the rebound of the activity, but also translates a rigorous cost discipline to lower the REF PAR sensitivity and the cash burn, and I'll get to that in the next slide. The cash burn, talking of it, we ended up at $20 million, which is way better than the $35 million guidance that we had been given, and all of that through contained investment, but also good working capital management. The reset saving, the effect in the financials is to the tune of 110 million, which again is better than the 70 million plus that we have provided as a gallon, significantly better. And let me give you on that a bit more color. I've tried to be as explicit as possible on the effect of the reset plan in each of the financial year to be totally didactic. So the 200 million run rate, which is what we committed to, will be attained on permanent saving by Q4 of 2022. What you have as an effect of that plan in financial year 2020 is 20 million of cost saving. What you have as an effect of the reset plan in 2021 is 110 million. And the swifter execution was because we were, in fact, very good, all the star line on executing the various severance plans. And also, we did put a strict control with the visibility that we had on business, on contractors. And so all of that helped. at generating that $110 million. Next year, if you do the computation, I mean the $200 million, we translate into $50 million of incremental EBITDA. And next year, for Reset, we'll be focused on IT transformation and automation of a low added value task. This is what we will continue. Very happy about that. So moving to the system growth and our network, we mentioned the net system growth at 3%. This equates to 41,000 rooms opening with the following highlights. China remains the main driver, and in fact, in China, we now have more than 500 hotels. Wazoo opened 10 southern rooms out of those 41 southern, which is in fact very much what they have done for the last three years. It's very consistent. The other thing I'd like to mention is conversion. We ended up the year at 42% of the opening being conversion, and this is a number which is slightly above the past year's trend, and in fact much better than the industry average. So also quite happy on the way things converted in terms of openings. The churn was monitored. We continue to be close to the historical level, i.e. slightly 2% plus. If you move to the left part of the table, the graph gives you the geographic breakdown of the network and the pipeline. There is really not much of a change versus what we had seen in previous period. On the high side, the one thing I'd like to show here, despite the obvious growth of the network, is the fact that the pipeline has also held very well. It has been resilient. We've got a larger pipeline in 2021 than we had in 2020. So that's not such an obvious thing taken into account what we went through. The most important element that I wanted to share with you today on the pipeline is that 40% of that pipeline is made of luxury and upscale segments. To understand the size of the change in what's happening in Accor, the same percentage four years ago would have been 12 points lower. So there is really a mixed challenge here, which is nothing else than what Sébastien was describing when he was talking about the powerhouse of brands and all the work that is being done in order to provide the best experience possible to our hotel guests. As a final comment, just to talk about 2022, we anticipate a net system growth at 3.5%, and there will be in that 3.5% a focus on higher fees because of what I just explained, on the pipeline and the nature of the openings. Talking of openings, a few pictures, just to make that presentation not only numbers. You see on the left part the Fairmont Century Plaza, which is a very iconic property in Los Angeles and that opened in October. a beautiful 400-room hotel. And then the other ones have been selected because they are kind of inaugural. The Movenpick Obart is the first Movenpick in Australia. The 25 Hours, one central in Dubai, is the first 25 Hours, which is outside of Europe. You may recall 25 Hours is a German company at Arte. Joe & Joe Vienna is the first Joe & Joe that we do outside of France. And the Novotel Jumeirah and the Ibis Timi Soarer are in fact illustrating the renewal of those brands and the new designs. So I go back to what I like better, which is numbers. If you move to REVPAR, overall, the REVPAR increased sequentially five points on average every month since the time that we've been talking to you about April being a turning point and Q4 as being just a confirmation of it. If you look at Q1 versus Q4, you see a 37% REVPAR improvement. So up to Q1, things were kind of, you know, I would say muted, and then since that time, every month, things have been getting better. We were talking about pricing. If you look at the overall group pricing, December was in fact 2% to 3% above December 2019. So we did that with exactly what we had been describing for the last 18 months, i.e. a strict pricing discipline, And I think this is paying off. And you see it very well in the table face to you. If you look at the orange bar of the group, you can see the portion of the room rate effect in the net ref bar. And you can see how much it has been shrinking period after period, translating the rigor of the pricing strategy with, as an offset, a higher demand from the end customer. So we played it well. If you go by geography, South Europe is a sequential improvement of seven points from Q3 to Q4, and we ended the year at minus 41%. The phenomenon here remains the one that we described in Q3, i.e. French provinces were particularly strong since the lift of the lockdown back in May, and from there on, Paris and the big cities increased in France have taken over with recovery of mice. In northern Europe, you've got exactly the same phenomenon for the UK. The UK did behave like France, province first, and then business came back, and notably in London. Germany was very much affected by lower vaccination, and you saw what happened in November in Germany. They have not yet fully recovered from that, and so Germany was in fact less performing than the UK or France. If you move to Asia-Pacific, here the quarterly sequential improvement is to the tune of nine points, and you end of the year at minus 49. The Pacific, which is for us fundamentally Australia, benefited from the restriction removal and the beginning of the summer season. It is summer in Q4 for the southern hemisphere. And so progressively, you've seen in Pacific the easing of the restriction. It started with Sydney in October. And then today, most of the interstate border are open. And in fact, since this month, Australia is open to international borders, travelers. So you can go back to Australia for vacation. If you move to greater China, I think the zero case policy does trigger choppy numbers because of the stop and go. Either you open up everything or you close everything. And so that creates huge fluctuation. The bottom line of it is that Q4 ended up at minus 35, which is a flat red bar versus Q3. If you move to Southeast Asia, there are some signs of recovery with a half bar at Q4 at minus 56. This has been our problem child during the year. But again, here with vaccination and the vaccination in those places have been somewhat delayed versus before. Europe or the United States. But you see now Thailand, which has been reopening. You see that Indonesia has also been lifting some of their constraints. And so this will play off next year to a much larger tune. If you go to EMAT, which for us is India, Middle East, Africa, and Turkey, Q4 was in fact 5% above 2019. So the Q4 FBAR was above 2019 level, and it was a 28% jump versus Q3. So what does explain that? A large part of it is coming from UAE, where in fact the Expo 2020, which is open since October, is a great success. And so that has been really fueling business. In Saudi, up to now, the business remains a bit subdued because of restrictions on pilgrimage. But again, here, the plan that the state has is to reopen those pilgrimages next year. America showed an 18-point improvement Q3 to Q4 and an absolute error at minus 46. There again, what is quite striking is Brazil, with a very sweet vaccination rate increase. And they moved up the ladder very swiftly. North America ended up there well because of the U.S. and Canada borders reopening and a good summer season. I'd like also to make a point on Omicron with what happened with Omicron before. December was no worse, was in fact better, sorry, than November. So, you know, you didn't see an effect of it in the numbers in December. You see some effect of it in January. So January is going to make, is going to mark a pause, if you want to say it this way, in the monthly REF PAR improvement. But if we look at what we've got in our hands, data that we've got in our hands in terms of the performance in February, but also what is on the books, we should be coming back to pre-Omicron level of HFPA by the end of Q1. So that's good. If you move to the group revenue, you've got the breakdown here by segment. I did comment on the overall number. There is one thing on hotel service, which is that it's very much consistent with the overall REVPAR that we've been decreasing. There is not a lot to comment here. The MNF is moving minus 51. The service to owner is moving minus 43. and that makes an average of minus 46, so there is not a lot of variances to be detailed. As for hotel assets, the performance is, in fact, better. You've got 35% when the group is at 42, and this is predominantly driven by Australia, where, in fact, the Montra business, large part of it being on the Sunshine Coast has been doing very well as the hemisphere summer was strong in Q1 and again started to be very strong in December and will be strong in Q1 of the current 2022 period. If you move to MNF, you've got it here by geography versus financial year 2020. There is a strong rebound, and notably over H2. We have been crossing the 50% mark of occupancy over H2, and that triggers, in fact, an increase of the incentive. and hence the fact that the numbers are improving faster. The two beneficiary – the largest beneficiary in terms of higher competency rate were Asia Pacific and EMAT, so Middle East, Africa, India, and Turkey. If you look at the variances versus financial R19, it is a little bit worse than the REFPA, but this is, again, nothing different than what we went into every call since two years, i.e. distortion is mainly coming from the incentives that are recovering as the profitability in the hotel is improving, which goes slower than the improvement of REFPA. If you move to the group ABDA, positive, 22 million, result of better activity and hence better fixed-cost absorption, and also result of an improved ABDA sensitivity, i.e. the capability that we did do to ourselves to reduce, in fact, the cost base in a permanent way. So that's what explains, in fact, the EBDA improvement, and I already went through many of the reset explanations. So I moved to the hotel service part of the EBDA, a significant improvement because we moved from 25 million to 275 million. As for service owner, the EBDA remains in fact, negative. But this is just a mechanical fact that we cannot flex the cost as fast as the sales. And again, here, as business will come back in 2022, 2023, 2024, we'll get back to a positive EBITDA on Service to Honor. As far as reimbursement costs, they are a true pass-through, as they have always been, but I like to say it since I always get the question. Regarding hotel assets and other, EBDA recovered well, again in line with what you saw on the REFPA, and notably because of Australia, because of the mantra business, or thanks to Australia, thanks to the mantra business. And the new businesses were closed to breakeven. They are part of that process. I'm moving now to net profit and so below ABDA elements of the P&L. You can see here a positive ABDA, 85. We did last year minus 2 billion, so significant transition. What makes it? Number one, the share of net losses of Associates and joint venture. This is fundamentally the performance of the 30% that we own of Accor Invest, and Accor Invest has significantly improved just as Europe has significantly improved. So that's the translation of the improvement on share of net losses of Associates. The non-recurring item, which is the second big, big, big, big ticket, the last year is the impairment that we want in much detail, the 1 billion impairment. This share is coming from what we had covered during H1, which is the sale of Wazoo. So just a quick synopsis here. We sold 5% in 2019. We sold an additional 1.5% in February, and the residual stake of 3.3% is now reported as a financial investment at fair value, and so not anymore as an equity stake, as we've been losing significant influence with the sale of the percentage in February. So that led to a gain recognition of 649 million on the totality of the stake, and this is what you find in that line. The remainder, by the way, is reset cost to make the bridge between the 649 and the 554. Just on profit from discontinued operation, that relates to AccorInvest. At the time of disposal, we did take some provisions, some contingency, and as the risks are materializing or not materializing in this case, we're releasing the provision. That's what you see on that line. Moving now to cash, you see here the average cash burn, which is highlighted on the bottom of this table. The recurring free cash flow remains still negative, but the number has been divided by three versus last year. And in fact, H2 was a positive cash generation, which again translates the significant improvement of occupation rate in H2 versus H1. We were at 34% in H1. We moved to 51%. And again, as we've been telling many of you, when we are above 50% is the time where cash generation is turning back to positive. A couple of highlights on this one for the variation. The interest, which is the cost of net debt increase, is the reflection of the downgrade from BBB- to BBB+, back in August 2020. That's essentially it. In terms of the net debt, the variation on the net debt, the increase of the net debt is related to the activity, i.e. we are losing money at an operating level and we want to reset restructuring. It's also related to a strategy that we had of balance sheet simplification with the reduction in the OASU stack to make the balance sheet more readable and also the creation of the Enismore platform a live site platform, which, again, was part of the asset light roadmap in the sense that it was moving SBE from being an equity investment to be something which is a fully owned asset light business. And so, again, that was part of that, and it makes the balance sheet much lighter, much nicer, and much easier to understand for everybody. Last but not least, there was also the Accor Invest capital increase, which was done back in Q1 of 2021 to the tune of 150 million. Recurring investment, we had told you somewhere between 150 to 200 at the beginning of the year, and we've told you that we would put pressure on that number, and so we end up at 122. We will use, again, the 150 to 200 investment bracket for next year, and we will adapt what we spend as we see the business recover, because obviously we want to spend in line with our business recovers. On working capital, we've been saying many, many years that this line should be at zero in a normalized way, and we are at zero or close to zero on working capital. Last year was a much different story, and you can see that there was 260 million negative working capital, and so good work here, again, from all the business people and finance people. Based on the above, and there is a little line on that table, the Board of Directors has decided not to pay a dividend, and they will do that proposal at the upcoming shareholder meeting, which is the body that decides, on May 20th. Again, the year was busy, and not only on the P&L, but on the balance sheet. We worked on the structure of the balance sheet. I've been pushing out some maturity, and you can see here it very well on the right part of the table. We issued a $700 million sustainability link bond back in November, and here again we've put our actions in line with our strategy because it's a sustainability link bond, i.e., The cost of the funding is linked to our performance in terms of carbon reduction. And so we are aligning what we say from a strategy perspective with what we do finance-wise. The issuance was very well received. I mean, it was 3.5 times, you know, oversubscribed. And with that, we now have an average debt maturity, which is about four years. You can see that there is not a significant payment before 2026. And all of that, by the way, with a cost of debt which is stable. On the liquidity, we have 3.4 billion of liquidity. We smoothly renegotiated the covenant attached to 1.2 RCF line that we've got. Our RCF revolving credit facility is made up, as you may recall, of two lines, one of 1.2 and one of 600, 560. And so on the 1.2, which is the core line that we've always had, we now have a liquidity covenant until December 2023. And then we come back to the original ratio, which is an added to EBITDA ratio. Regarding the 560 RCF, which matures, which is maturing in May, and that we raised at the time of the crisis two years ago, there is no reason to keep that one because the crisis is getting behind us. And so... That's what we will do. Last slide for me, because I know it's a core point and we want to address it. This is on cash allocation. I mean, first off, the first thing that we've got to do is accentuate profitability. That means capturing the rebound. Capturing the rebound that started in 2021, pursuing in 2022, is of paramount importance because it helps EBITDA, it helps cash recovery, and everything comes from that. And so that's what you've got on the left part of the table. If you move to the medium, what we will do is fundamentally come back to what our dividend and capital return policy was that we've been explaining back in 2018 in a post-booster, which is that there is recurring free cash flow. Fifty percent of that recurring free cash flow goes mechanically into a dividend, a normal dividend, every year. And so that's what we will do. In addition to that, we will assess if there is excess cash flow, the capability to return it to shareholders, and we will do that intelligently, assessing also how we get back to our pre-COVID credit profile, because the intent of the company is to get back to the pre-COVID credit profile, i.e. investment guidance. So in the meantime, balance sheet preservation remains a top priority. So you've seen that we've been every year doing asset liability management type of operation, and 2021 was no different. So we'll continue to do that with agility. We'll continue our asset light roadmap. I was mentioning SBE. I was mentioning Wazoo. We still have to go and do Mantra, and we'll continue and do that. The strategy here has not changed. And we will be opportunistic regarding asset rotation in order to continue to further optimize the business and simplify the balance sheet. With that, I leave the floor back to Sébastien.

Merci, Jean-Jacques. So on the closing remarks, there's three things we have learned from the crisis, and there's probably actually more than three, but I guess here for you we put three just to touch upon. The first one is an enormous change of behavior from the guests of Accor, I guess from the guests of any hospitality company. We have to get much better on local stays. People actually will travel probably not that far away, and we've seen it on the workations, on the staycations. So clear need for all of us to embark with the local populations and with the people that we have domestically. Number two, and I touched upon it one second when it comes to lifestyle entertainment, food and beverage. is a key ingredient and a key criteria of choice for people to go to an alcohol hotel or an alcohol network destination. So bars, restaurants, entertainment is what people are looking forward to get. And we've seen it when the confinement was over. We have seen so many people. back and happily back in the bars and restaurants of so many cities in the world, which is what I was hopeful. Wellness. People want to live longer. They want to live healthier. They are taking care of themselves, and that's something we cannot depart from, and we have to reinvest heavily, and this is the nature of our business. Disruptive concept, don't be shy. Continue to innovate. Continue to think of what could be pleasing your own guests. Basically, embark them into their core limitless programs and move away from the walls of the different hotel destinations. And then new destinations, I've touched upon it a bit when it comes to trains in Italy, but it's true for Alula, Almala, Red Sea in Saudi Arabia. You have many countries opening their own territories to be discovered by so many people, and I can guarantee you Accor is probably 99% of the cases very close to the different governments, the different ministries of tourism to help them. basically grow and have a great ever experience in this government country you don't know. And it's more, I just want to show you something which is in correlation with what I just said, which is why FNB is important, why disruptive concepts are important. You know we've been launching that lifestyle entertainment platform seven years ago. So it has nothing to do with COVID, except COVID accelerated probably tenfold what people are desired to get. What you have on the left side of that slide, the bottom dark line, it's Accor numbers in terms of Refbar. And Jean-Jacques told you we finished quarter after quarter. It's getting better. And certainly we finished the year with minus 27% for quarter four of last year. We have a difficult January. Of course we know this. But we still believe, both of us and many of us at our core, that despite an awful month of January, we should be better than hopefully 27% in the first quarter of 2022 and better in the second quarter of 2022. That trend will be remaining and hopefully we're going to be increasing the slope. But you see on the top of that slide is the red line. The red line is the exact same ref bar for the 14 brands of Ennismore, Mama Shelter, Mondrian, Hoxton, SLS, Delano, you name it. And there's a 10-point delta, and if not greater, between the Ennismore brand and the Accor legacy brand. Why? It's very simple for people to understand. the any small lifestyle segment, 55% to 60% of total revenues has nothing to do with a shower and a bed. It's people coming to dine, to spend a couple hours to have a coffee, to meet somebody. And the beauty of this is 80% of the food and beverage clients happen to be local people. That person who lives next door, next street, coming by foot or by bike. So the resiliency of that business is, of course, so much greater because you have a lesser dependency on the international travelers. And then what you see on the right side of that slide is when you look at the reason why they have better performances, you see very clearly it is 90% due to FNB, because the green line is the FNB rebound in any small, which basically meaning that it gets minus 6%. They're already back at the pre-19 level, and you see the same, any small REF bar total is a bit less because of the room component. big bet, it was the right bet, and we should basically reinforce that I guess we went the right direction with the right branch, with a great team, and happily so. Just since I'm talking about the team, and just I didn't tell him ahead of me talking today, I need in front of you to thank Jean-Jacques, his team, the financial people, to thank actually the teams of Accor. I guarantee you the results we've shown to you this morning are far better. that what both of us could have expected in the summer of 2022. We never shown fear, but we were in a very challenging environment and having succeeded in going EBDA positive, succeeded in being net income positive, that was not a needy thing. in terms of discipline, in terms of rigor, in terms of freezing any new hire, in terms of making sure you don't really lose cash. That was a huge endeavor in the worst-ever moment, and so a lot of tributes to whomever is in the organization. At the hub level, at the hotel level, they all accepted the constraint, the challenges, which permits us to show those results to you, which probably means... that you're going to have a huge elastic effect, positive elastic effect for the 2022, because we're going to be able to have a better margin, better drop-through, thanks to all the efforts being made over the last couple of years. So, Jean-Jacques, un grand merci.