Get Adobe Flash player 1Corporate Presentation STRATEGIC VISION AND OUTLOOK 1.5.2. TRENDS AND OUTLOOK Fourth-quarter 2012 trends continued into January/ February 2013, with situations varying by major region. In Europe, demand remained robust in key cities but performance was more mixed in the provinces. Southern Europe (Spain, Italy, Portugal and Greece) was an exception to this trend, with the steady decline observed since 2008 continuing apace. Emerging markets in Latin America, Africa-Middle East and Asia-Pacific continued to deliver a solid performance, despite a slight decline in Australia. In an economic environment that remains uncertain in Europe, business is holding firm, in line with what was observed in late 2012. As a result, Accor has entered 2013 both cautious and confident in its business outlook. 1.5.3. A NEW AMBITION FOR 2016 In August 2012, Accor stepped up its transformation and redefined the asset-light concept by excluding hotels operated under variable-rent leases. As part of the transformation of its business model, which is being driven both by fast growth under management and franchise contracts and by a dynamic Asset Management strategy, Accor is now committed, by the end of 2016, to operating a room base 40% under franchise agreements, 40% under management contracts and 20% in owned or leased hotels. Room portfolio at end-December 2012 End-2016 target Management Franchise Owned Franchise Management Variable Lease Fixed Lease Owned & Leased 32% 22% 25% 12% 9% 40% 20% 40% 57% asset-light 80% asset-light This transformation will also lead to a geographic shift in the income stream, with the target of earning 50% of EBIT from emerging markets, as opposed to 23% at end-2012. This process will involve consolidating our existing leadership in emerging markets, restructuring the portfolio in Europe to focus on a majority of management and franchise contracts, and strengthening the Group’s expertise and accountability. The strategy is being executed by activating five key drivers: 1. strengthening the brands and distribution; 2. maintaining the fast pace of development; 3. stepping up the Asset Management program; 4. improving organizational efficiency; 5. achieving operational excellence to improve competitiveness.