KEY FACTS Q2 Motel One DRESDEN AM ZWINGER opened PAGE1 CAMPARI exclusive premiere for TOCCO ROSSO at Motel One PAGE 2 Awarded "Bavaria s Best 50" PAGE 2 Motel One DÜSSELDORF-HAUPTBAHNHOF is launched PAGE 3 Occupancy rate increased to 79% PAGE 4 Marked improvement in operating cash flow PAGE 5 Leverage Framework improved PAGE 6 BUSINESS DEVELOPMENT MOTEL ONE DRESDEN AM ZWINGER OPENED Putti and pillars are what hotel guests see when they open the curtains decorated with turquoise ornaments in the newly opened Motel One Dresden am Zwinger. Their gaze alights on one of the principal attractions of the capital of Saxony - the Zwinger. The famous baroque memorial with gardens is now home to museums and musical and theatrical events. The Low Budget Design hotel chain s 43 rd hotel is located right in the heart of the old part of the city of Dresden, in the newly developed Zwinger Forum which includes offices, stores and restaurants as well as the hotel. The Residenzschloss, Semperoper and Frauenkirche can be reached in just a few minutes on foot. The One Lounge reflects the themes of Augustus the Strong as well as the porcelain museum. The One Lounge at the Motel One DRESDEN am ZWINGER
CAMPARI SUMMER DRINK EXCLUSIVE AT MOTEL ONE Motel One was for six weeks the exclusive partner for the premiere of Campari s new summer drink Tocco Rosso. A blend of refreshingly bitter Campari, elderflower syrup, Prosecco and aromatic mint. This was the first collaboration between Campari and the Low Budget Design hotel chain who invited guests to 31 Motel Ones in all to take a glass of Tocco Rosso in the One Lounge. Over 120,000 guests accepted the invitation, a resounding success for the joint initiative which aimed to introduce Campari to a younger and exciting target group. MOTEL ONE AWARDED BAVARIA S BEST 50 Motel One can be justifiably pleased with another distinction: BAVARIA S BEST 50. Bavaria s Minister for the Economy, Infrastructure, Traffic and Technology awards this honour to the 50 medium-sized companies, from a wide variety of sectors, which have recorded the strongest growth. As well as other factors a major focal point is the above average increase in sales and number of employees during the last five years. Philippe Weyland, Managing Director of the Motel One Group receives the award in Munich from Minister of State Zeil
MOTEL ONE DÜSSELDORF-HAUPTBAHNHOF OPENED The 44th hotel of the Low Budget Design hotel group was opened in June 2013 and is only five minutes on foot from the main railway station. The One Lounge design concept focuses on Japan, since the hotel with its 244 rooms is located in the largest Japanese community in Germany, in Immermannstraße. Lights in the lampion design, a collage of the skylines of Tokyo and Düsseldorf as well as a small garden with cherry trees and fountain stone give a Japanese feel. The Motel One Düsseldorf-Hauptbahnhof joins the Motel One Düsseldorf-City in the southern part of the city as well as the Motel One Düsseldorf-Ratingen as the group s third hotel in the city. The MOTEL ONE DÜSSELDORF-HAUPTBAHNHOF opened in the Rhine city s Japanese district
OCCUPANCY RATE IN Q2 INCREASED TO 79% The second quarter of 2013 saw the opening of the hotels Dresden am Zwinger with its 288 rooms and Düsseldorf-Hauptbahnhof with 244. The local network now includes 44 (previous year 39) hotels with a capacity of 9,755 rooms (previous year 8,525). The occupancy rate in Q2 rose to 78.6% (previous year: 75.9%) with revenue per room of EUR 78.50 (previous year: 76.80) a 2.3% increase over the prior year. Revenue increased by 18% to EUR 53 million (previous year 45 million). EBITDA improved by 28% to EUR 21 million (previous year: 16 million). After depreciation and interest, quarterly pre-tax profit of EUR 14 million (previous year: 12 million) was achieved (a 20% increase over the previous year). For the first half-year based on an occupancy rate of 72.9% (previous year: 69.6%) revenue of EUR 95 million (previous year: 80 million) and EBITDA of EUR 33 million (previous year: 27 million) was recorded. In spite of the increase in depreciation and interest expenses due to the property pre-tax profit during the half-year rose by 18% to EUR 20 million (previous year: 17 million). The interest result already includes foreign exchange losses on the British pound for the commitment in the UK of EUR 0.4 million, after another foreign exchange gain in the previous year of EUR 0.5 million. After tax halfyearly profit of EUR 14 (previous year: 12 million) was recorded.
MARKED INCREASE IN OPERATING CASH FLOW Q2 operating cash flow rose, including investments in renovating the 2008 generation of hotels, by 43% to EUR 12 million (previous year: 8 million). The increase in free cash flow to EUR 15 million (previous year: 8 million) was on the other hand attributable to technical effects of working capital and the repayment of bank loans. New investments during Q2 of EUR 9 million (previous year: 6 million) relate in particular to the newly opened hotels Dresden-Zwinger (FF&E) and Düsseldorf-Hauptbahnhof (construction work + FF&E). In the case of the changes in the loans of the Joint Venture Partner Verkehrsbüro Group a capital conversion was made in the amount of EUR 2.5 million as part of financing the Motel One Wien-Staatsoper project. The revaluation of bank loans at EUR 3 million (previous year: 7 million) concerns Düsseldorf-Hauptbahnhof and Edinburgh-Royal. For the first half-year of 2013, operating cash flow increased by 50% to EUR 17 million (previous year: 11 million) and free cash flow to EUR 11 million (previous year: 8 million). The balance from new investments and the corresponding financing amounts to a cash requirement of EUR 18 million (previous year: 1 million). This is primarily due to the repayment of the former Wien-Staatsoper financing and will be reduced again by a revaluation of the financing. The corresponding loan commitment is already available to the company. Total cash at bank & in hand decreased in 1H 2013 by EUR 4 million to the current EUR 54 million (previous year: 45 million) as at 30.06.2013.
LEVERAGE FRAMEWORK IMPROVED Cash & assets grew by 18% over the prior year to EUR 390 million (previous year: 332 million). Net working capital increased by 6% to EUR 25 million (previous year: 23 million). Equity, including the Joint Venture loan, increased by 21% to EUR 199 million (previous year: 164 million). Equity ratio increased despite the strong growth and the increase in the property portfolio to 4,003 rooms (previous year: 3,551) to 51% (previous year: 50%). Balance Sheet June, 30 December, 31 2013 2012 Abw. 2012 2011 Abw. TEUR % TEUR % % TEUR % TEUR % % Fixed assets 327.222 83,8 280.293 84,4 16,7 Current assets 9.557 2,4 7.230 2,2 32,2 Cash at bank & in hand 54.062 13,8 44.549 13,4 21,4 Cash & Assets 390.841 100,0 332.072 100,0 17,7 314.684 82,7 267.951 86,5 17,4 7.996 2,1 5.508 1,8 45,2 58.130 15,3 36.661 11,8 58,6 380.810 100,0 310.120 100,0 22,8 Equity 187.242 47,9 162.472 48,9 15,2 JV Austria 11.610 3,0 1.911 0,6 >100,0 Bank Loans 157.914 40,4 137.255 41,4 15,1 Other Liabilities 30.115 7,7 25.255 7,6 19,2 Non repayable grant 3.961 1,0 5.179 1,6-23,5 Equity & Liabilities 390.841 100,0 332.072 100,0 17,7 171.234 45,0 150.558 48,5 13,7 3.773 1,0 1.698 0,5 >100,0 169.400 44,5 127.781 41,2 32,6 31.841 8,4 24.522 7,9 29,8 4.562 1,2 5.561 1,8-18,0 380.810 100,0 310.120 100,0 22,8 Net Working Capital 24.519 23.204 5,7 Net Debt 103.852 92.706 12,0 Equity + JV Loan 198.852 50,9 164.383 49,5 21,0 28.407 24.575 15,6 111.270 91.120 22,1 175.007 46,0 152.256 49,1 14,9 EBITDA Rolling 12 months 68.206 52.190 30,7 Net Debt/EBITDA 1,5 1,8 62.217 44.210 40,7 1,8 2,1 Net Debt/EBITDA adj. Pipeline 1,4 1,5 1,1 1,8 Net debt increased compared to the 1st half-year of 2012 by 12% to EUR 104 million (previous year: 93 million). Net debt/ebitda (Rolling 12 Month), however, improved from 1.8 in the previous year to the current 1.5. Adjusted by the pipeline loans, notional debt repayment maturity is now 1.4 years (previous year: 1.5).
PIPELINE REMAINS CONSTANT With the Dresden-Zwinger and Düsseldorf-Hauptbahnhof openings the pipeline initially decreased in comparison to the previous 31.12. New contracts signed in Manchester and Stuttgart-Bad Cannstatt, however, mean that the pipeline volume remains virtually unchanged with 28 hotels and around 8,000 rooms. The investment volume associated with the pipeline amounted at 30.06.2013 to EUR 174 million (previous year: 176 million). This is matched by contractual investment subsidies and bank loans totalling EUR 112 million (previous year: 96 million). The cash requirement from the investments for implementing the pipeline hence amounts to EUR 62 million (previous year: 80 million), including EUR 30 million for the current year (previous year: 50 million).
MARKET AND OUTLOOK In 1H 2013 the hotel market in Germany recorded positive growth with an average increase in RevPAR of +1.2%, also reflecting the trend in Europe as a whole according to STR Global (+1.2%). Neighbouring Austria showed a slight downturn of -0.3%. The top destinations in Germany performed well for 1H 2013. The MOTEL ONE EDINBURGH-PRINCES - opening autumn 2013 Good RevPAR growth was recorded, for example, by Berlin (+2.9%), Frankfurt (+2.2%), Hamburg (+4.2%) and Munich (+14.6%). Only Düsseldorf (-16.4%) and neighbouring Essen (-20.7%) suffered losses compared to the previous year due to the trade fair cycle. In 1H 2013 the European destinations relevant for Motel One consistently recorded a slight drop in RevPAR in Vienna (-1.7%), Salzburg (-1.0%) and Edinburgh (-1.2%) (source: STR Global). In terms of market performance no serious changes are anticipated for the second half of the year. Three more hotels will be opened in the autumn - the Motel One Rostock and the second Motel One in Edinburgh as well as the Motel One Köln-Mediapark. Munich, July 2013