Scandic Hotels Group Ab · OMXSTO:SHOT
Scandic Hotels Group Ab — Q4 2023 Earnings Presentation
20 slides from Scandic Hotels Group Ab's earnings presentation, Feb 14, 2024
Slide 1: Q4 Report February 14, 2024
Q4 REPORT FEBRUARY 14, 2024 Scandic Park, Sweden
Slide 2: Good Fourth Quarter
GOOD FOURTH QUARTER • Improved net sales and solid results • Good demand from corporate and leisure • Increased occupancy and prices on all markets • Accelerated pace to enhance guest journey and efficiency • Continued expansion in Germany • Buyback of convertible bond – reduced potential dilution S
Slide 3: Quarterly Adjusted EBITDA Solid
QUARTERLY ADJUSTED EBITDA SOLID 1 200 RESULTS 900 600 • Adjusted EBITDA of 451 (476) MSEK 300 • Excl. one-offs, results in line with the fourth quarter last year 0 • Commercial performance and high -300 efficiency -600 2020 2021 2022 2023 -900 -1 200 Q1 Q2 Q3 Q4 3
Slide 4: New Record Year
NEW RECORD YEAR • Net sales and adjusted EBITDA on all-time high • Resilient market with high demand and increasing prices • Key steps taken to further improve guest experiences • Ramped-up activity level within portfolio development • Strong cash flow generation and financial position • The board p
Slide 5: Good Demand in All Our Markets
GOOD DEMAND IN ALL OUR MARKETS MARKET OCCUPANCY SWEDEN NORWAY 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% FINLAND DENMARK 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% Source: Benchmarking Alliance 5
Slide 6: Positive Price Development
100 110 120 130 140 50 60 70 80 90 Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Source: Benchmarking Alliance Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Sweden Dec 2020 Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 INDEXED TO CORRESPONDING MONTH 2019 Jun 2021 MARKET AVERAGE ROOM RATE DEVEL
Slide 7: RevPAR on Continued High Levels
100 120 140 0 20 40 60 80 Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Source: Benchmarking Alliance MARKET REVPAR Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Sweden Nov 2020 Dec 2020 Jan 2021 Feb 2021 Mar 2021 Apr 2021 INDEXED TO CORRESPONDING MONTH 2019 May 2021 Jun 2021 Jul 2021 Aug 2021 Norway
Slide 8: New Signing in Q4
NEW SIGNING IN Q4 • 311-room hotel in Nürnberg, Germany Tromsø, Norway Aarhus, Denmark • Scandic to open the hotel on March 1, 2024 Scandic Nürnberg Central, Germany Scandic Nürnberg Central, Germany • Recently fully renovated and reopened in the fall of 2023 • Top location near the historic distric
Slide 9: Scandic to Rebrand Hotel in Helsinki
SCANDIC TO REBRAND HOTEL IN HELSINKI • New long-term agreement with landlord Exilion Tromsø, Norway Aarhus, Denmark • 174-room Holiday Inn Hotel to be converted and Holiday Inn City Centre rebranded to Scandic in 2025 Holiday Inn City Centre • Located in downtown Helsinki, perfectly situated for lei
Slide 10: Ramping Up the Portfolio Activity
RAMPING UP THE PORTFOLIO ACTIVITY Pipeline as of December 31, 2023 No. of Year Hotel Destination rooms Q1 2024 Scandic Nürnberg Central Nürnberg, Germany New 311 Q3 2024 Scandic Go Sankt Eriksgatan Stockholm, Sweden New 221 Q3 2025 Signature Collection, Tromsø Tromsø, Norway New 305 Q2 2026 Scandic,
Slide 11: Financial Update
FINANCIAL UPDATE 11 Scandic Go Upplandsgatan 4, Sweden 1111
Slide 12: Improved Net Sales and Solid Results
Adjusted Adjusted IMPROVED NET SALES Net sales EBITDA EBITDA margin AND SOLID RESULTS MSEK Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Sweden 1,641 1,658 225 221 13.7% 13.3% • Net sales increased 3.5 % to 5,410 MSEK (5,228) Norway 1,469 1,503 170 194 11.6% 12.9% Finland 1,283 1,196 130 124 10.1%
Slide 13: New Record Year
Adjusted Adjusted NEW RECORD YEAR Net sales EBITDA EBITDA margin MSEK 2023 2022 2023 2022 2023 2022 Sweden 6,644 6,053 995 876 15,0% 14.4% • Net sales increased 14.1% to 21,935 MSEK (19,230) Norway 6,180 6,039 1,011 1,171 16.4% 19.4% Finland 4,998 4,089 540 383 10.8% 9.4% • Adj. EBITDA of 2,566 MSEK
Slide 14: Strong Cash Flow
MSEK Q4 2023 Jan-Dec 2023 STRONG CASH FLOW Adjusted EBITDA 451 2,566 Change in working capital 315 -192 Paid tax -15 -109 • Free cash flow of 549 MSEK in Q4 and Interest paid -32 -57 1,754 MSEK in 2023 Pre-opening costs & other items 41 67 • Change in working capital impacted by Cash flow from opera
Slide 15: Financing Items
FINANCING ITEMS • Net debt of 1,503 MSEK1 DEBT • Net debt/adjusted EBITDA of 0.6x (0.2x excluding the convertible bond) • Total credit facility of 3,450 MSEK WORKING • Liabilities related to variable rent of approximately 430 MSEK to be settled in first half of 2024 CAPITAL • Completed buyback of co
Slide 16: Concluding Remarks
CONCLUDING REMARKS Grand Hotel Oslo, Norway 1616
Slide 17: Outlook
OUTLOOK • Positive view on 2024 with bookings in line with last year • Based on current booking situation, we expect a first quarter with slightly lower occupancy than last year (due to earlier easter) at higher price levels • With strong financials, we continue to increase pace and investments for
Slide 18: Scandic Continental, Sweden
18 18 Scandic Continental, Sweden
Slide 19: Appendix
APPENDIX
Slide 20: Net Financial Items, Reported vs. Cash Flow
NET FINANCIAL ITEMS, REPORTED MSEK Q4 2023 Jan-Dec 2023 VS. CASH FLOW Total financial net, reported -528 -2,064 of which interest expenses, IFRS 16 -428 -1,734 Financial net excl. IFRS 16 -100 -330 Adjustments to paid financial items • Reported financial net of -528 MSEK incl. IFRS 16 Interest expen