EHL GROUP

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Activity report 2015

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Ecole htelire de Lausanne

Route de Cojonnex 18 - 1000 Lausanne 25 - Switzerland
+41 21 785 11 11
I
t is our pleasure to unveil EHL Groups achievements
in 2015, the first year in which we assembled as a
Group to focus on big projects, major achievements
and outstanding events that we invite you to discover in
the coming pages.
Our new structure as a holding company enables us
to better meet the expectations of students, applicants
and employers, and to provide them with a variety
of specific products and services. In this respect,
the creation of EHL Group is a decisive strategic measure
that will foster the development of EHL and reinforce its
global leadership position.
In 2015, we welcomed the first students for our new Master
in Global Hospitality Business, an innovative program
taking place on three continents; we committed to an
ambitious growth strategy; unveiled our plans for a new,
pioneering campus in Lausanne by 2022; continued to
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develop our educational portfolio in our school in Passugg;
and developed the offers and school certification program
of our Lausanne Hospitality Consulting entity.
Our students are at the heart of our success: 2,526
students representing close to 90 nationalities attended
our schools in Lausanne and Passugg in 2015. We took
great pride in the success of our graduates, with more
than 500 students successfully completing their degrees.
Our alumni network, active and engaged as ever, held
more than 400 events worldwide, including those in
Madrid, Berlin, Duba, New York, Hong Kong, Basel and
Lausanne; the 2015 Gala event at the Dorchester in
London and a visit of the World Expo in Milan.
Finally, positive financial results enabled us to build upon
our commitments for the future.
MICHEL ROCHAT
Chief Executive Officer
2015: A YEAR IN REVIEW
July
January
Looking ahead for excellence at SSTH
Announcing a new EHL Group A preparatory year was introduced at the school in Passugg for foreign students,
2015 was marked by the implementation of the EHL (holding) SA enabling them to undertake a Swiss Professional Degree in Hospitality Management.
and subsidiaries.

 ronze trophy at ICC

B
The Swiss team, represented by EHLs Kevin Gibbins and Nicolas Richon
won the bronze section of the International Catering Cup 2015 in Lyon.

April
4th edition of TEDxEHL
With the theme Feed your
Brain, the event welcomed
200 visitors for a day of
conferences. Student
volunteers facilitated the visit
of distinguished speakers to
spread new ideas at EHL.

March
6th edition of the Young Hoteliers Summit
Fully organized by students, YHS brought together delegates from 31 schools for a three-day conference
May
with high-profile speakers, on the theme of hospitality in the sharing economy. EHL Chef publishes first book
Fabien Pairon, Senior Lecturer
at EHL and Meilleur Ouvrier de
France, shares his passion in
Douceurs charcutires, an
instructive and creative piece
on charcuterie.

June
Students raise funds for charity
The Student Social Responsibility Committee organized
a Holi Festival a Hindu tradition known as the festival of
colors, with 100% of profits (CHF 10,000) donated to a clean
water organization.

AccorHotels Take Off! Student Challenge

This years topic invited students to imagine AccorHotels
loyalty program for 2020, and a team of EHL students won
with their successful project called Loyalty Redefined.

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2015: A YEAR IN REVIEW

September
A new Masters degree on three continents Improvements to the Lausanne Campus December
EHL welcomed the first 28 students from 19 New classrooms, offices and study areas for student,
Hyatt Student Prize
nationalities admitted to the new Master of Science teachers and staff were made available for the
Rubina Insam, MSc in Global
HES-SO in Global Hospitality Business. September intake.
Hospitality Business student
at EHL, received this award
from Hyatt celebrating the
most talented student of the
international hospitality industry.

Worldwide Hospitality Awards

The Award for Best Professional
Success was presented to Marika
Beindorff, a 24-year-old EHL
graduate with an amazing career
path and assertive character.

Swiss Tourism Milestone Awards

EHL graduates won Swiss
tourism Milestones Awards in
the Emerging Talents and
Remarkable Project categories.

October
Unveiling our future campus
We presented our Campus
Development project,
materialized in a remarkable
manner in line with the slogan
A campus for students,
designed by students.
November
Partnership with Cambodian school
We signed a two-year Memorandum of Understanding with the Ecole dhtellerie et de tourisme
Paul Dubrule in Siem Reap, Cambodia, as part of EHLs ongoing CSR activities.
EHL Alumni Awards
The prize of Alumnus of the Year was presented to Mr. Philipp Mosimann (EHL 2000), while Mercedes
Assal Poget (EHL 1999) was named Entrepreneur of the Year.

Certified school conference

Lausanne Hospitality
Consulting hosted the 4th
Biennial Conference with
global EHL-certified schools, in
the presence of 14 delegates
to discuss global trends in
hospitality education.

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FINANCIAL SITUATION INCOME STATEMENT (KCHF) 2015 2014
2015, a year of tremendous change
Operating income 99,344 90,609
Income from subsidies 790 1,375
Use of funds 2,877 1,857
TOTAL OPERATING INCOME 103,011 93,841

Personnel expenses 59,290 57,301

Other operating expenses 27,397 23,903
Amortization and depreciation 8,362 8,783
Dissolution of provisions -203 0
Allocation of funds 3,390 1,810
TOTAL OPERATING PROFIT 4,775 2,044

Financial income 150 346

Financial costs -1,651 -1,551
NET OPERATING PROFIT 3,274 839

Non-operating profit 452 25

Non-operating loss -90 0
PROFIT BEFORE TAXES 3,636 864

Taxes -2,453 -21

NET PROFIT 1,183 843

Allocated to:
parent company 981 941
minority interests 202 -98
1,183 843

2015 was, as planned and forecasted, the end of a first period of tremendous change in the organization and its
business model. EHL changed its administrative and legal tax structure and became EHL Group, together with
entities such as Lausanne Hospitality Consulting and the Swiss School of Hospitality and Tourism (SSTH); and the
school in Lausanne hosted the last annual-only promotion for the Bachelor program, which graduated in July.

Today EHL welcomes two graduating promotions per year, as well as an increasing number of students in the
upgraded Bachelor and Master programs. These main evolutions, along with major changes in financial methods
including efficiency-seeking, budget processes, strategic financial planning, internal controls and processes
management, resulted in the following consequences:
A cceleration of sales growth of more than 9.8% in 2015 vs. 2014;
Growth of global expenses, under control, of more than 7% in 2015 vs. 2014;
- Salaries and wages increased by more than 3.5%. It remains the first line of expenses mixing direct, indirect and
administrative costs. Most of these were dedicated to the support of education, research and program development.
-O  ther expenses growth exceeded 14.5%, including the delivery of more than 4,500 square meters of new
facilities for students and professors, and the development of the Marketing function.
As a consequence, an operating result multiplied by four; and
A n optimized tax charge, for the first time after tax status was newly negotiated in 2013-2014, then implemented
in 2015, of 2,453 KCHF.

FABIEN GUIMTRANDY
Chief Financial Officer

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BALANCE SHEET - ASSETS (KCHF) 2015 2014 BALANCE SHEET - LIABILITIES (KCHF) 2015 2014

CURRENT ASSETS SHORT-TERM LIABILITIES

Cash and cash equivalents 17,812 20,112 Short-term financial liabilities 1,473 6,336
Receivables for sales and services 5,720 6,446 Accounts payable 23,219 20,103
Students 2,786 3,226 Students 19,872 16,536
Third party 2,934 3,220 Third party 3,347 3,567
Other short-term receivables 1,667 21 Other short-term liabilities 3,396 3,185
Third party 1,667 21 Third party 3,396 3,185
Inventories 1,022 920 Accruals 22,812 20,942
Accruals 4,123 3,950 Provisions 4,029 1,650
TOTAL CURRENT ASSETS 30,344 31,449 TOTAL SHORT-TERM LIABILITIES 54,929 52,216

FIXED ASSETS LONG-TERM LIABILITIES

Financial assets 525 458 Long-term financial liabilities 64,664 56,154
Student loans 398 453 Financial institutions 57,624 49,114
Loans to third party 113 0 - 7,040 7,040
Other financial assets 14 1 Deferred taxes 1,560 1,389
Employer contribution reserve 1,342 1,342 TOTAL LONG-TERM LIABILITIES 66,224 57,543
Provision for employer contribution reserve -1,342 -1,342 TOTAL LIABILITIES 121,153 109,759
Investment 0 4
Tangible assets 183,308 102,384 FUNDS ALLOCATED
Intangible assets 3,900 606 Student funds 1,893 1,066
Investments in progress 2,242 10,878 Other funds 373 279
TOTAL FIXED ASSETS 189,975 114,326 TOTAL ALLOCATED FUNDS 2,266 1,345

TOTAL ASSETS 220,319 145,775 EQUITY

Capital 8,968 8,968
Assets growth was significant. It represented the effect of structural change, which allowed EHL Group to benefit from General reserve 85,176 23,526
a valuation closer from reality of its real estate portfolio, completed by experts.
Profit for the financial year 981 941
Cash remained high and along with EHL Groups plan of treasury. TOTAL EQUITY CAPITAL FOR THE FOUNDATION 95,125 33,435

Intangibles grew significantly due to the implementation of strategic and transverse projects with regard, for instance, Minority interests 1,775 1,236
to IT and processes, which contributed to strengthening the newly established integrated management system. TOTAL EQUITY 96,900 34,671

TOTAL LIABILITIES AND EQUITY 220,319 145,775

Short-term liabilities remained quite stable, reflecting growth in terms of students and the impact of the gap between
the accounting year (January to December) and the operative-academic one (September to August).

Long-term liabilities increased by an average of +8,700 KCHF, dedicated to the buildings and facilities delivered in
September 2015 and after, while Short term decreased as a consequence of mortgage loans reimbursement.

Equity grew thanks to the effect of the asset valuation update and the result capitalized. Minority interests were
generated by EHL Groups consulting and vocational education entities.

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2015 CASH FLOW (KCHF) 2015 2014

Net profit 1,183 941

Amortizations and depreciation 8,362 8,783
Changes in provisions -203 -
Changes in provision for receivables 90 328
Contribution (amortization of S&C loans) -20 -20
Provision for taxes 2,453 -
Non-monetary items links to acquisition - 3,307
Financial result 1,501 1,204
Other non-monetary items -264 -

CASH FLOW BEFORE CHANGE IN NET WORKING CAPITAL 13,102 14,543

Changes in inventories -102 -153

Changes in accounts receivable and related accounts -558 -2,620
Changes in accrued income 7,009 561
Changes in payables, related accounts and liabilities 3,323 3,581
Changes in accrued liabilities and provisions -4,888 1,310

CASH FLOW FROM OPERATING ACTIVITY 17,886 17,222

Interest received - 83
Interest paid -1,508 -1,297

NET CASH FLOW FROM OPERATING ACTIVITY 16,377 16,008

Investment in tangible fixed assets -18,772 -37,368

Investment in intangible fixed assets -4,194 -286
Investment in financial fixed assets -519 112
Monetary items linked to acquisition - 3,542
Acquisition of minority interests 70 1,236

CASH FLOW FROM INVESTMENT -23,415 -32,764

Allocation of funds 3,390 1,786

Use of funds -2,469 -1,857
Changes in mortgage debts 3,647 23,833
Changes in other long-term liabilities 172 1,388
Conversion adjustment -1 -

CASH FLOW FROM FINANCING 4,739 25,150

CHANGES IN CASH AND CASH EQUIVALENTS -2,299 8,394

Cash at the beginning of the financial period 20,112 11,717
Cash at the end of the financial period 17,812 20,112

CHANGES IN CASH AND CASH EQUIVALENTS -2,299 8,394

Cash generation from operations was stable in 2015 (+16,000 KCHF), while capital expenditure decreased (-9,343
KCHF), in line with the end of the first phase of investments in new facilities and real estate.

Mortgage debtsrepresenting 100% of long-term debts, except the part with a 12-month period and less maturity
were met with a light increase (+3,647 KCHF), demonstrating EHL Groups growth capacity and its ability to finance a
certain level of investments on its own (23,415 KCHF).
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2015 BOARD MEMBERS

Board of Governors International Advisory Board

President: ANDR WITSCHI
President: EMANUEL BERGER
Members:
Members:
DORIS FIALA, National Deputy, Zurich Canton
Prof. Dr. WERNER INDERBITZIN, President, Swiss Science Center Technorama GAMAL AZIZ, President, Wynn Hotels & Casinos Macau

PIERRE-ANDR MICHOUD, Vice-President and Owner, Htel du Thtre, Yverdon RAYMOND BICKSON, Principal & CEO, Bickson Hospitality Group

CHRISTOPHER W. NORTON, Executive Vice President, Global Product & Operations, Four Seasons Hotels and Resorts JEAN-CLAUDE BIVER, Chairman, Hublot

CHANTAL OSTORERO, Superior General Director, Vaud Canton BERNHARD BOHNENBERGER, President, Six Senses Hotels Resorts Spas

OSCAR TOSATO, Municipal Counselor, Lausanne, Department of childhood, youth and social cohesion SVEN BOINET, Deputy CEO, AccorHotels

LUCIANA VACCARO, Director, HES-SO PETER C. BORER, COO, The HongKong and Shanghai Hotels
DAVID BOSSHART, CEO, Gottlieb Duttweiler Institute
PATRICK CANDRIAN, Former Chief Commercial Officer, Flughafen Zrich

Board of Directors CHRISTOPHER COWDRAY, CEO, Dorchester Collection

PAUL DUBRULE, Co-founder, AccorHotels
President: GUGLIELMO L. BRENTEL
ESTHER DYSON, Chairman, EDventure
SUSIE ELLIS, President of SpaFinder Wellness, Chairman & CEO of Global Spa & Wellness Summit
Members:
PETER FANKHAUSER, CEO, Thomas Cook
MARC-ANDR BERCLAZ, Operational director, Ple EPFL Valais Wallis JURGEN FISCHER, Chairman of the Board, Mvenpick Hotels & Resorts
FRANOIS DUSSART, Managing Director, Beau-Rivage Palace SA CHUCK FLOYD, Global President of Operations, Hyatt Hotels Corporation
Dr CHRISTOPH JUEN, CEO, hotelleriesuisse MICHAEL GLENNIE, President & COO, Fairmont Raffles Hotels International (Switzerland)
YVES REY, Vice-director, Learning, HES-SO TETSURO INUMARU, Managing Officer & Deputy General Manager, Imperial Hotel Tokyo
NATHALIE SEILER-HAYEZ, General Manager, Beau-Rivage Palace ANDREW KATZ, Partner at Prospect Advisors, The Blackstone Group
DOMINIQUE SEILER, Head of Talent Acquisition, UBS Switzerland PIERRE LANDOLT, Chairman, Sandoz Family Foundation & Director of Novartis
GERALD LAWLESS, Head of Tourism and Hospitality Strategy, Dubai Holding
MICHAEL LEVIE, COO, Citizen M
Executive Committee PHILIPP MOSIMANN, Managing Director, Mosimanns London

CEO: Prof. MICHEL ROCHAT WOLFGANG NEUMANN, President & CEO, The Rezidor Hotel Group
CHRISTOPHER NORTON, President, Global Product & Operations, Four Seasons Hotels and Resorts
Members: VIKRAM OBEROI, COO and Joint Managing Director, Oberoi Hotels & Resorts
JEAN-GABRIEL PRS, President & CEO, Mvenpick Hotels and Resorts
FABIEN FRESNEL, Chief Academic Officer
STEPHEN RUSHMORE Founder, HVS
PASCAL GAUTHIER, Chief Human Resources Officer
ANDREAS G. SCHMID, Chairman, Gategroup / Davidoff
FABIEN GUIMTRANDY, Chief Financial Officer
BRUNO H. SCHOEPFER, Managing Director, Katara Hospitality Switzerland
MAXIME MEDINA, General Secretary
JONATHAN STENT-TORRIANI, CEO & Co Owner, Newrest
OLIVIER ROUX, Chief Marketing & Communications Officer
DOMINIQUE TURPIN, President, IMD Lausanne
RMI WALBAUM, Chief Innovation and Infrastructure Officer
SIMON VINCENT, Executive Vice President, Hilton Worldwide & President EMEA
MICHAEL P. WALE, President, Starwood Hotels & Resorts EMEA
HANS WIEDEMANN, Managing Director & Delegate of the Board, Badrutts Palace Hotel

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