Slide 1: Interim presentation
Interim presentation 14 February, 2019 Anders Nissen, CEO Liia Nõu, CFO
Slide 2: Profitable growth both for the quarter and the year
Profitable growth both for the quarter and the year 1 Profitable acquisitions in new large markets 17% R12M 2 Strong development in Brussels Return on equity2 3 Stable demand in the hotel market 25% 29% 1% 1% 11% 10% Q4 FY Q4 FY Q4 FY Growth in total LFL growth in NOI LFL growth in NOI net operating
Slide 3: Substantial increase in total net operating income
Substantial increase in total net operating income Based on a combination of factors + Strong performance in the UK and Ireland + Strong growth in Brussels and Berlin + Stable underlying demand in the hotel market Net +158m Q4 2018 - Weak trade fair calendar in Germany Net +681m - Negative renovatio
Slide 4: Focus on profitable growth (R12M)
Focus on profitable growth (R12M) Continously high business tempo reflected in earnings OUTCOME (R12M) 3 500 3,057 3 000 2 500 2 000 +2.0x 1,890 1,505 1 500 +2.1x 1 000 894 500 Total net operating income Total cash earnings 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 2018 PANDOX
Slide 5: Portfolio overview
Portfolio overview Well-diversified portfolio dominated by revenue-based leases Pandox Property Operator Group Management Activities 144 128 16 Hotel properties Leased properties Operated properties 32,268 27,309 4,959 Rooms Rooms Rooms 85% 15% Property market value Property market value SEK 55.2bn
Slide 6: The world of Pandox
The world of Pandox 2% ✓ 144 hotels ✓ 32,268 rooms 46% ✓ 15 countries 21% ✓ 82 destinations ✓ +20 brands 31% The circles illustrate market value by region as of 31 December 2018 (rounded percentages) PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 6
Slide 7: Leonardo Wolfsburg City Centre
Leonardo Wolfsburg City Centre Hotel extension creates leading regional hotel ✓ 150 rooms added ✓ 345 rooms in total ✓ MEUR 11 investment ✓ High expected ROI ✓ Property Management 7
Slide 8: Jurys Inn Belfast
Jurys Inn Belfast Hotel extension creates leading city hotel ✓ 83 new rooms added ✓ 270 rooms in total ✓ MGBP 6 investment ✓ High expected ROI ✓ Property Management 8
Slide 9: DoubleTree by Hilton Montreal
DoubleTree by Hilton Montreal Hotel rebranding in a very dynamic hotel market ✓ Rebranding to DoubleTree by Hilton ✓ International full-service hotel ✓ 595 rooms ✓ Operator Activities © 2019 Hilton 9
Slide 10: A broad selection of operators and brands
A broad selection of operators and brands All brands and logos are the property of their respective owner PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS
Slide 11: Positive growth (RevPAR Q4 y/y)
Positive growth (RevPAR Q4 y/y) Europe (RevPAR) Selected countries (RevPAR) 8% 7% 20% 7% 18% 18% 6% 6% 16% 5% 5% 5% 14% 12% 4% 10% 10% 3% 8% 7% 2% 6% 5% 4% 4% 1% 4% 3% 0% 0% 2% 0% Q2 2018 Q1 2018 Q3 2018 Q4 2018 Q4 2017 0% Denmark Germany Sweden UK Finland Ireland Austria Norway Source: STR Global S
Slide 12: Good growth in several key markets (RevPAR Q4 y/y)
Good growth in several key markets (RevPAR Q4 y/y) Key markets (RevPAR) Stockholm (RevPAR) 20% 6% 15% 5% 15% 5% 12% 4% 4% 10% 9% 3% 3% 5% 4% 2% 3% 2% 1% 1% 0% 0% -5% -3% -1% -2% -10% -3% -11% -3% -3% -15% -4% Q2 2018 Q1 2018 Q3 2018 Q4 2017 Q4 2018 Copenhagen Berlin Frankfurt Helsinki Montreal Oslo
Slide 13: Financial highlights
Financial highlights Profitable earnings growth Key figures Comments on the quarter Q4 Q4 chg FY FY chg Property Management: LFL1 increase in (MSEK) 2018 2017 % 2018 2017 % revenue and net operating income of Revenue 1 percent respectively 749 571 31 2,971 2,202 35 Property Management (Note 1) Net o
Slide 14: Financial expense
Financial expense Increase reflects several factors Financial expense Loan portfolio Interest rate swap portfolio Interest rate (Q4’18 vs Q4’17) (End Q4’18 vs end Q4’17) (End Q4’18 vs end Q4’17) (End Q4’18 vs end Q4’17) 28,095 26,473 Other 15% 18,698 Other 14% GBP GBP 19% 22,153 18% gross -214 SEK 1
Slide 15: Good growth and strong profitability
Good growth and strong profitability Property Management Net operating income Rental income Oct – Dec 2018 in % Q4 Q4 FY FY (MSEK) Sweden 2018 2017 2018 2017 6% UK 2% Rental income 704 549 2,809 2,121 Germany 7% Other property income 45 22 162 81 Finland 30% Denmark 7% Costs* -122 -82 -454 -321 Norw
Slide 16: Brussels maintained good momentum
Brussels maintained good momentum Operator Activities Net operating income Revenues Oct – Dec 2018 in % Q4 Q4 FY FY (MSEK) 2018 2017 2018 2017 Belgium 9% 1% Revenue 626 528 2,153 2,067 Canada Costs -507 -429 -1,776 -1,743 Germany Gross Profit 119 99 377 324 UK 22% Finland 47% Add: Depreciation inclu
Slide 17: Property portfolio
Property portfolio A relatively active quarter Change in value (MSEK) Comments per 31 December, 2018 Total property portfolio market value amounted to MSEK 55,197 (50,121) Average valuation yield for Investment Properties was 5.51 (5.57) percent and for Operating Properties 6.74 (7.27) percent +3.4%
Slide 18: Financing and capital structure
Financing and capital structure Sustained growth in EPRA NAV and maintained financial flexibility Liquid funds and long-term unutilised EPRA Net Asset Value (MSEK) Loan to value (%) credit facilities (MSEK) EPRA NAV per share, SEK Renewed mandate from the AGM 2018 to issue new shares up to a maximum
Slide 19: Stable growing dividend
Stable growing dividend Pay-out ratio well within target range Total cash earnings and Dividend payout ratio and Dividend per share in SEK1,2 and dividend in MSEK1 target range in %1 dividend yield in %3 1,890 1,660 60% 1,289 +24 percent 1,130 4.70 4.40 40% 4.10 3.80 50% 50% 44% 42% 787 646 737 2.9%
Slide 20: The main drivers for growth
The main drivers for growth Opportunistic acquisitions Operations Portfolio investments Diversified portfolio Market growth Organic growth PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 20
Slide 21: Hotel Hubert Brussels Q&A
Hotel Hubert Brussels Q&A 21
Slide 22: Head office Pandox AB (publ)
Head office Pandox AB (publ) Box 15 SE-101 20 Stockholm Sweden Visiting address Vasagatan 11 Stockholm Sweden Tel: +46 8 506 205 www.pandox.se Org.nr. 556030-7885 Forward-looking statements. This presentation contains forward- looking statements. Such statements are subject to risks and uncertaintie