Accor Sa

good morning good morning everyone thank you so much for joining the year and release for our course so i'm gonna start pretty short and sweet uh if i may so you have the first light in front of you those looking at us looking at your screen uh four things four takeaways uh for the group the first is we are yeah we are um happy with the results of the last year. We are certainly overachieving what we expected the last time we've talked in September and end of the third quarter, or certainly after the end of the first semester number when we've met physically late July and August. And we still have the headwinds in so many economies, so many geographies, but yes, we are thrilled with what was achieved by the teams and by the different brands of this company. Why are we relieved and happy? I think because we really delivered on what we've been promising to you, which is cost discipline. A lot of it is due to do we have the rigor? Do we have the discipline? Do we have the right plan? And do we have the right accountability? So the focus on the execution of the plan is something which is extremely important has been the case for the last three years will be the case for the next probably 10 years and certainly for the next two years until the capital market day is finished by 27 which means we're going to have to do another plan way beyond 27 because of course it doesn't stop in 27. uh the third element here which is quite interesting is We're getting stronger and stronger and stronger when it comes to signing new partnership and certainly due to the robustness of the loyalty program. All Accor is very welcomed in the numbers of geography. You probably have seen the number with over 15 million new members last year. That 15 is being 12 a year before, probably going to be between 15 and 20 million this year. So that program, the benefit of the program, the credibility, the notoriety is immense. And that is true in all geography of this company, be it in Europe, in South America, and certainly in Asia. And since you have a very beneficial partnership and loyalty program that, of course, a lot of people want to piggyback and paddle with us on those programs. So you're going to see non-REF power revenues increasing year after year, which is what we've been asking for and planned for the last three years. And finally, four is we're doing all this to make sure we have sufficient cash to be returned to the shareholders and all the cash being returned, 743 million, which is 6.5% of the market cap as of the 1st of January last year, is what we also promised to you at the time of the Capital Market Day. So everything is really green light and there's probably a lot of things we're going to be sharing with you over the next one hour and a half. So I'll turn it over to Martine on getting deeper on all the different numbers.

Thanks, Sebastian, and good morning, everyone. So I'll start with the highlight. for the full year financial. For the third year in a row, ICAR's performance is in line or above its midterm perspectives, as announced in June of 2023. And I'm very pleased to report that we had a very strong finish in 2025 with results above actually our annual guidance. We exited 2025 with a very broad-based acceleration in REVPAR and in net unit growth, which bodes well for 2026. REF bar growth, as you can see here, was an impressive 7%, and actually that's our best quarter in 2025 on both divisions. The performance was, again, mostly driven by rates over this quarter, but occupancy rates also was up one point year over year. This drove full-year REFPA growth to a very solid 4.2%, that is above the high end of our midterm guidance and above the high end of our annual guidance, confirming the benefits of our geographical and segment diversification. Room revenue growth was driven both by leisure and business, which proved remarkably resilient, with corporate activity actually picking up speed in the fourth quarter. NUG, or net unit growth, accelerated to 3.7%, which is in line with a circa 3.5% guidance with a record level of openings in the fourth quarter. Pipeline grew at the very healthy double-digit growth of 10%, with signings up 28% year over year, comforting us in our ability to further accelerate the growth of our network toward the higher end of our midterm guidance of 3% to 5%. Our financial performance for the full year 2025 is in line with our midterm growth algorithm. M&F, management and franchise, revenue was up 6% at constant currency year over year, with total revenue reaching $5,639,000,000. Recurring EBITDA grew at 13% at constant currency, reaching $1,201,000,000. That is above the high end of the guided range. An operating leverage with a solid 100 basis points improvement in M&F EBITDA margin. and we delivered 16% growth in adjusted EPS. Adjusted EPS is a new metric we will report on going forward and which we believe is a more consistent measure of earning growth. It is defined as reported EPS excluding non-recurring items and S&D contribution and you will find a detailed bridge between reported and adjusted in the appendix section. Recurring free cash flow reached 632 million or a 53% cash conversion. And as we heard from Sébastien, we delivered yet another year of strong shareholder return at 743 million, which equates to 6.5% of the market cap. That brings the total shareholder returns in the last three years to 2.1 billion. Let's now turn to the fourth quarter ref bar on slide seven. PME posted a very solid REF bar growth of 5.8%, mostly driven by pricing, as you can see here. In the quarter, rate was up 5% and occupancy was up 1.68%. ENA rebounded in the fourth quarter with a REF bar growth of 3.3%, equally driven by occupancy and rates. Our three biggest markets, which are France, Germany and the UK, were all positive in the quarter. The region also benefited from the very good results of our winter sales activity, which reflects the continuous appetite for travel. In France, Paris rebounded in the fourth quarter with an excellent month of December and growth in the mid single digit for the quarter. The province delivered growth in the low single digits. In the UK, the rebound we observed in the third quarter was sustained in the fourth quarter with rough bar growth in the low single digit. In Germany, Refbar was back in positive territory in the mid-single digits after three quarters of negative growth. In Mayapak, the fourth quarter was up 7.6%, bouncing back from a softer Q3. The performance is driven by rates, while occupancy decreased, although that is related to China exclusively. If we exclude China, occupancy was up two points and Refbar was up 10.4% in that region. Mayotte continued to be a strong growth drivers with all large destination, including Saudi, Dubai, reporting ref bar growth in the mid teens in the quarter. Southeast Asia is back in the mid single digit territory. Singapore, Japan, and India posted high single digit growth and performance in Indonesia and Thailand sequentially improved, although still negative in the fourth quarter. Singapore benefited from a positive calendar event with the F1. and Japan posted solid growth despite the lower inflows from China. Pacific continues on its strong momentum, With a double-digit REF PAR growth in the fourth quarter, driven by price and occupancy, China continues to sequentially improve, but still posted negative mid-single-digit growth, as our portfolio in China in PME is mostly echo-mid. Actually, we saw an almost neutral REF PAR for the full year in our luxury portfolio for China, with the fourth quarter that was up 6% for the luxury. America's posted double digit ref bar growth with the Q4 up 11.7%. In addition to what has been consistent supportive demand, Brazil benefited from the COP 30 conference, which was held in November in Belém, where we have 8 hotels. If we turn now to luxury and lifestyle, REF bar growth was 9.5%, that is the strongest quarter of the year for luxury and lifestyle, and is driven by rate and occupancy. Rate was up 6% in the fourth quarter, occupancy was up 4 points in the fourth quarter. Luxury continues to outperform as a segment, with Q4 REF PAR up 9.4%, and all brands and regions contributed to this performance. That confirms the structurally supportive demand for this segment of the hospitality. Lifestyle also had a very strong REF PAR, almost 10% in the quarter. Results continued to perform very well, with REF PAR growth in the mid-teens, and Lifestyle Collective posted their strongest quarter of the year. Turning to slide eight, which breaks down our hotel portfolio and pipeline by division. The PME grew its network by 3%, and that is a clear acceleration from 2024 and is actually at the midpoint of the CMD guidance for PME. And that results from the acceleration of opening in the fourth quarter, notably with two large hotel openings, the handwritten in Las Vegas and the EBITS budget, Hidalgo Tower in Mecca. churn also started to slightly recede towards the end of the year. MEAPAC continues to be the growth engine over the period, represented the vast majority of the openings. Pipeline grew at a stellar almost 12% rate, reaching 198,000 room, which is 29% of the PME network, and that is up two points from last year. And that confirms the attractiveness of the PME brands. The M&F revenue per room was stable at €1,200. On the right, luxury and lifestyle portfolio grew by 7.5%, driven by Annie Smore, which delivered yet another year of impressive 18% growth in its network, in line with the CMD guidance. Fourth quarter again was particularly active with more than half of the annual openings in the fourth quarter. Notable openings in luxury and lifestyle include the Faena in Delano in New York City, the Orient Express in Rome, and the Emblem in Lucknum. The pipeline in luxury and lifestyle continued to grow at a sustained pace and signings grew in the mid-teens. Pipeline stands at 43% of the network and that's also up two points from prior year. And finally, the M&F revenue per room is stable at €3,900. So at group level, again, NUG reached 3.7%. That's a tad above our annual guidance of circa 3.5%, with record level of openings in the fourth quarter. Conversions were 58% of our opening, pretty consistent with 2024. And again, the pipeline grew 10% year over year, with a record level of signings in volume and value. We maintain a healthy mix in our pipeline between volume and value. Our strong focus on driving higher fee per room is reflected in the 67% growth in the value pipeline as compared to 2019, which is three times the growth of the pipeline in volume. Let's now turn to slide 10 with the revenue by segment. The revenue by segment and by division is provided in the appendix and in the press release. revenue reached 5 billion 639 million that's up four and a half percent at constant currency versus prior and it's a clear acceleration from the third quarter year to date the reported growth at 0.6 percent is negatively impacted by the fx scope effect uh in 2025 was an extra management and franchise revenue grew growth accelerated significantly in the fourth quarter, and we closed 2025 with growth of 5.9% at constant currency, which is in line with our mid-term guidance. Hotel Assets and Other Revenue was up 4.6% at constant currency due to the solid performance of our leased hotel in Brazil and Turkey, but also solid F&V activity at our Paris Society and Ricas restaurant. We disposed of the festive activity of Paris Society in the third quarter, which impacted our revenue in the fourth quarter for hotel assets and other. SMDL, which again stands for sales, marketing, distribution, and loyalty, revenue grew by 4.4% at constant currency. And as we called out in the third quarter, and you may recall this, The growth was impacted by the accounting revenue recognition of services provided to the Olympic Games organizing committee, which were EBITDA neutral. If we adjust for this, then SMDL revenue in 2025 would be up at 6.7% at constant currency. Turning to management and franchise revenue by segment on page 11, which grew almost 6% for the full year. And in the fourth quarter, M&F revenue growth was 16% at constant currency. And this reflects the REFBAR growth, a partial effect from the net tuning growth given the phasing of openings towards the end of the year and the impact of the flip to franchise in PME, which we have again commented in previous quarters. Incentive fees are stable as a percent of M&F fee at 33% and residential fees were also stable year over year as expected. PME M&F revenue was up 1.9% at constant currency. In the fourth quarter, PME M&F revenue growth was a very solid 6.7% at constant currency. The distortion on a four-year basis is mainly related to the switch from management to franchise contract for a portion of the contract, which again we called out since the beginning of 2025 and had overall a negative 2% impact on PME M&F revenue. and the phasing of openings, which took place again later in the year. Luxury and lifestyle, MNF revenue grew at 13% on a constant currency basis, which is in line with the growth of the REFBAR and the NUG. And the phasing of churn and openings, especially in lifestyle, explains a slight negative distortion on the MNF growth algorithm. Now let's turn to EBITDA on slide 12. Again, the group EBITDA reached $1,201,000,000, that's up 13.3% at constant currency that is above our 11-12% updated guideline in October. This is above the high end of the CMD guideline as well. The reported EBITDA growth at 7.2% includes a negative FX impact of 68 million, slightly above our initial estimate of 60 million. As for M&F, where more detail again is provided in the appendix by division. EBITDA is up 7.4%, again reflecting a one point Margin improvement in line with our operating leverage target. Both divisions improved their margin, although operating leverage was strongest in luxury and lifestyle. PME margin was negatively impacted in the second half by a provision on outstanding receivables of Brevo, which is an owner mostly in Germany that has filed for insolvency proceedings in January of this year. If we adjust for that, then PME margin would also have improved over 100 basins points, which is in line with its targeted operating leverage. As for hotel assets and others, EBITDA growth mainly stems from the solid revenue growth mentioned previously and a margin improvement in our F&B operations at Paris Society. As for SMDL, the significant growth in the SMDL EBITDA reflects the structural improvement in distribution and the growth in partnership and subscription. with a margin that is in line with our guidance of being at least 6%. In 2025, subscription and partnerships actually represented a third of the EBITDA of SMDL. And as you can see here, costs for the holdings were flat year over year. Moving on to the P&L on slide 13. As highlighted in my introduction, we have decided to start reporting on adjusted net income and adjusted EPS, as we believe it is a more consistent measure of earnings growth over time. And a detailed bridge again is provided in the appendix. Adjustment items are as follows. Other income and expenses, net of tax, share of profit and loss from our minority stake in Ascendi, and non-recurring tax-related items. In 2025, we achieved an adjusted net profit of €504 million, that's up 19% year-over-year, and an adjusted EPS of €1.84, that's up 16% versus prior. In 24, we benefited from a favorable timing on the payment of our hybrid coupons, which obviously impacts the 2025 EPS growth by about eight points. The 65 million charge we have for hybrid coupon in 25 is more representative of what we expect on a go-forward basis. Now, let me call out the main highlights for the income statement. Other income and expense at a negative 63 million included the recognition of a provision related to commitments in a joint venture and expenses related to the transformation of our tech platforms as well as restructuring costs. Share of net profit and associates reached 7 million. In 2025, S&D reported far fewer capital gains than it did in 2024, with a net profit for S&D that stood at $3 million in 2025 as opposed to $184 million in 2024. Net financial expense increase is driven by a higher debt level, a moderate increase in the average cost of debt, which still stands at a reasonable 3%. And in addition, 2024 was impacted by a non-cash-fareable FX change of about $16 million related to our U.S. balances in Egypt. Income tax expense is decreasing. Now, as a reminder, 2024 was impacted by a one-off taxation, which was related to the 2023 reorganization in two divisions. And in 2025, corporate income tax is fairly impacted by the evolution of our transfer pricing model. Now moving on to cash flow on slide 14. Recurring free cash flow reached $632 million in 2025 as compared to $614 million in prior year, reflecting a 53% cash conversion. Five main highlights to call out. Cash interest fairly stable, although not reflecting the coupon of the September bond. In 2026 we expect cash interest to be in the 100 million area driven by the increase in debt level mainly. Cash tax increased from 169 million to 202 million and that is due to higher taxable profits but also some non-recurring remittance taxes mainly in Brazil. We expect our cash taxes to be broadly stable in 2026. Recurring investments remained under control at 230 million versus 221 million in 2024, and this is in line with our mid-term guidance, and that reflects the group's acceleration in luxury and lifestyle, which requires slightly higher key money to support its faster pace of development. The working capital change is a negative 20 million in 2025 and that is driven really by the increase in trade receivables at the end of the year due to the very strong activity in the fourth quarter of last year. If we adjust for this receivable impact, which obviously will collect in 2025, then cash conversion actually would be close to 55%. And finally, net debt reached 3 billion 64 million at the end of December. And as a reminder, net debt was 3.1 billion at the end of June, with the main movements in the second half being recurring free cash flow, share buyback, some M&A activity, mainly in Mexico, and none other recurring items, mainly tech transformation and restructuring. Zooming in on our balance sheet and shareholder return on slide 15. We continue to have a proactive management of our liabilities. In 2025, ICO issued two bonds, senior bond, one in March, which is actually an eight-year bond to extend the maturity of our debt, and one in September, which is a seven-year bond. And as a result, the average debt maturity increased from 3.3 years to four years at the end of 2025 with a very well-balanced bond. maturity profile and a reasonable cost of debt at 3%. Net debt leverage and return to shareholders are managed at a level that allows us to be consistent with our investment grade rating as defined by regening agencies. On the right side of the slide, you have a summary of the return to shareholders since 2018. And the conjugation of a solid balance sheet and cash flow generation has enabled us to deliver steady and growing shareholder return and again in the last three years we have returned 2.1 billion to our shareholders which includes in 25 again a return of 743 million or six and a half percent of the market cap at the beginning of the year our policy as you're familiar with is to distribute an ordinary dividend equal to 50 percent of our recurring free cash flow and we will therefore propose To the Annual General Shareholder Assembly, a dividend of €1.35 per share, which is an increase of 7% versus prior year. Slide 16 covers our extra financial reporting on social and environmental targets, which are included in the Chairman and CEO compensation. And we delivered on all three goals. We reduced our water intensity by 5%. At the end of 2025, we had 57% of our hotels which achieved an eco-label certification. And we crossed the 40% level for women at the VP or above level with a share of 41%. And to conclude on slide 17, again, for the third year in a row, Accor's performance is in line or above its midterm perspectives announced in June of 2023, and we're also in line or above our guidance for 2025. We exited the year on a strong note and a good momentum, and that momentum is extended. into 2026, given what we see in January and February, which is a solid demand. And this comforts us in our ability to deliver the growth algorithm in 2026 that will be in line with our mid-term guidance. And I will now turn it back to Sébastien for concluding remarks.

Thank you so much, Martine. In many ways, I'm actually wondering whether you're not more American than French, which is great in both cases. Let me just turn to the final slide and then we're going to go to the Q&A. Five things here. Number one, we on purpose added the word laser focused. We've made a commitment to each of you over the last few years is to really be stringent on delivering capital market day KPIs. We've done it the first three years, but we're going to do it again. in the remaining two years, certainly in 26 and in 2027. The second one, which is very much linked to being able to deliver on the capital market day 23-27 plans, you need to accelerate on the net unique growth and you need to accelerate on trying to get some non-REF power revenues from loyalty partnerships and others. The one thing which is striking, and Martin was talking about it, The NERG has been 3.7% last year, which is roughly 50,000 rooms being opened, which is kind of a record number ever for our core. We're certainly looking for overachieving that 50,000 rooms marker, and we know where we're going. Why do we know? never enjoyed so much of a signing pace over the last few months of 2025, and notably in PME. So I need to thank Jean-Jacques who's going to come on board in a minute answering the Q&A. But the effort made by PME developers, even more so on premium, and in Europe is showing an enormous momentum for the brand content and for ability to exceed the 3.7% that we had last year. I don't want to actually forget Lux Lifestyle developers. You also have done great jobs, but they had to catch up on PME more so than ever. And loyalty partnerships, we are discussing with many partners all over different geographies, and those will be strong revenues moving forward. i just want to remind some of you being with us in 2019 when we launched all at the time i told you we had like a 6 million partnership revenues that's multiplied by 10 as of last year the pivot to franchise model in mature markets this is something that consciously we decided to go into, which is really due to two things. Number one, it's proven by many other operators and by us as well that I guess you have a better margin when it comes to a franchise hotel that you do have on an operating management contract. Two, it's more resilient in terms of performances over the years. Three, which is probably very much additive, it does enable you to go faster on basically the net unit growth. You do sign a franchise hotel probably twice faster than you would do in a management contract mature market is it's important because this is where you have the sophistication of franchisees because in order to sign a franchise you need somebody to be able to operate the hotel so you're going to see echo more and more certainly in europe and in mature market go faster stronger in the franchise model On the fourth, we talked about it on a share buyback of 450 million in 26. That's a bit larger than 25, almost the same number at 25. And fifth is S&D. I'm sure we're going to have questions on the current discussions with S&D. We will and we must close the S&D transaction in 26. We're not late, exactly at the same time last year when the question was asked. Martine and I and Jean-Jacques actually answered, it is a 12 to 18 months process. We are exactly in the 12 months benchmark, and we are exactly at the stage we wanted to be last year when we talked about it. So nothing to worry about. We know where we're going, but we're going to finish the job. So that's where we are, and now we're going to turn almost on the mark, 9 o'clock sharp, to Q&A. for those of you who wants to pop in. So let's open the call for Q&A, please. And I'm gonna ask Jean-Jacques to come next to us. So we're gonna make space for him.