Scandic Hotels Group Ab · OMXSTO:SHOT

Scandic Hotels Group Ab — Q3 2022 Earnings Presentation

17 slides from Scandic Hotels Group Ab's earnings presentation, Oct 27, 2022

  1. Slide 1: Scandic Hotels Q3 Report October 27, 2022

    SCANDIC HOTELS Q3 REPORT OCTOBER 27, 2022

  2. Slide 2: Scandic's Best Quarter Ever

    SCANDIC'S BEST QUARTER EVER • Net sales and adjusted EBITDA reached new record levels for a single quarter • Good demand from corporate and leisure • Occupancy increased to 70% from 63% in Q2, and room rates continued to improve on all markets • All-time high RevPAR • Strong cash flow and lower debt

  3. Slide 3: Adjusted EBITDA at All-Time High

    SCANDIC – QUARTERLY ADJUSTED EBITDA ADJUSTED MSEK EBITDA AT 1 200 900 ALL-TIME HIGH 600 • Adjusted EBITDA reached 1.2 BN SEK in Q3, almost a 50 percent 300 increase compared to Q3 in 2019 0 • Record strong adjusted EBITDA -300 margin of 20.2%, compared with 15.8% in Q3 2019 -600 2019 2020 2021 2022

  4. Slide 4: Rapid Improvement to Stable Levels

    RAPID IMPROVEMENT TO STABLE LEVELS SWEDEN (TOTAL MARKET OCCUPANCY) NORWAY (TOTAL MARKET OCCUPANCY) 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% FINLAND (TOTAL MARKET OCCUPANCY) DENMARK (TOTAL MARKET OCCUPANCY) 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% Source: Benchmarking Alliance 4

  5. Slide 5: Continued High Average Room Rates

    MARKET AVERAGE ROOM RATE DEVELOPMENT INDEXED TO CORRESPONDING MONTH 2019 CONTINUED Sweden Norway Finland Denmark HIGH AVERAGE 140 130 ROOM RATES 120 110 • Average room rates on continued 100 high levels, stabilizing somewhat from record summer months 90 80 • Finland on high levels, although 70 laggi

  6. Slide 6: Most Markets Above 2019 Levels

    MOST MARKETS MARKET REVPAR INDEXED TO CORRESPONDING MONTH 2019 ABOVE 2019 140 Sweden Norway Finland Denmark LEVELS 120 100 • Continued high RevPAR above 2019 80 levels, driven by higher room rates 60 40 20 0 Source: Benchmarking Alliance 6

  7. Slide 7: Continued High Portfolio Activity and Focus on Growing Pipeline

    CONTINUED HIGH PORTFOLIO ACTIVITY AND FOCUS ON GROWING PIPELINE Pipeline as of September 30, 2022 Year Hotel Destination No. of rooms Q4 2022 Scandic Opus Horsens Horsens, Denmark Take Over 132 Q4 2022 Scandic München Macherei Munich, Germany New 234 Q1 2023 Scandic Frankfurt Hafenpark Frankfurt, Ge

  8. Slide 8: One Opening and New Signing in Q3

    ONE OPENING AND NEW SIGNING IN Q3 SCANDIC HELSINKI HUB │ NEW OPENING SCANDIC IN SKI │ NEW SIGNING 352 rooms, Helsinki, Finland 220 rooms, expected opening in 2026, Oslo, Norway 8

  9. Slide 9: Two Completed Openings in Q4

    TWO COMPLETED OPENINGS IN Q4 SCANDIC MÜNCHEN MACHEREI │ NEW OPENING SCANDIC OPUS HORSENS │ NEW OPENING (TAKE OVER) 234 rooms, Munich, Germany 132 rooms, Horsens, Denmark 9

  10. Slide 10: Financial Update

    FINANCIAL UPDATE 10 Scandic Göteborg Central, Sweden

  11. Slide 11: Net Sales and Results Reached New Record Levels

    NET SALES AND RESULTS REACHED MSEK Net sales Adjusted Adjusted EBITDA NEW RECORD EBITDA margin LEVELS Q3 Q3 Q3 Q3 Q3 Q3 2022 2021 2022 2021 2022 2021 • Net sales increased 60% to 5,994 MSEK (3,734) • Adj.EBITDA increased 70% to 1,213 Sweden 1,882 1,072 401 142 21.2% 13.3% MSEK (709) Norway 1,876 1,4

  12. Slide 12: Strong Cash Flow in Q3

    Q3 2022 Jan-Sep 2022 Adjusted EBITDA 1,213 2,060 Change in working capital -64 45 STRONG CASH Paid tax -1 -36 FLOW IN Q3 Interest paid 4 -125 Pre-opening costs & other items -20 -122 • Free cash flow of 953 MSEK boosted Cash flow from operations 1,099 1,810 by strong underlying results Investments i

  13. Slide 13: Financing Items

    FINANCING ITEMS • Net debt of 2,381 MSEK including 690 MSEK related to other interest-bearing liabilities (debt relating to DEBT deferred payments for VAT and social security contributions) • Total credit facility of 5,352 MSEK WORKING • Liabilities related to variable rent of approximately 640 MSEK

  14. Slide 14: Net Financial Items, Reported vs. Cash Flow

    Q3 2022 Jan-Sep 2022 NET FINANCIAL Total financial net, reported -436 -1,369 ITEMS, of which interest expenses, IFRS 16 -372 -1,081 REPORTED VS. Financial net excl. IFRS 16 -64 -289 CASH FLOW Adjustments to paid financial items • Reported financial net in Q3 was -436 Interest expenses, convertible b

  15. Slide 15: Concluding Remarks

    CONCLUDING REMARKS Scandic Oceanhamnen, Sweden

  16. Slide 16: Outlook

    OUTLOOK • Based on current booking levels, we have a positive outlook for the fourth quarter • We expect overall good demand in the fourth quarter in line with the historical pattern but at relatively high price levels • Continued focus on efficiency and cost control • High level of preparedness for

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