Scandic Hotels Group Ab · OMXSTO:SHOT
Scandic Hotels Group Ab — Q4 2021 Earnings Presentation
18 slides from Scandic Hotels Group Ab's earnings presentation, Feb 10, 2022
Slide 1: Year-End Report, February 2022
Y E A R - E N D R E P O R T, F E B R U A R Y 2 0 2 2
Slide 2: Improved results & strong cash flow in Q4
IMPROVED RESULTS & STRONG CASH FLOW IN Q4 IMPROVED RESULTS & STRONG CASH FLOW GOOD DEMAND IN OCTOBER & NOVEMBER, SLOW DECEMBER DUE TO NEW RESTRICTIONS POSITIVE VIEW FOR 2022 DESPITE WEAK START TO YEAR Scandic
Slide 3: Quarterly results trend 2019-2021 (MSEK)
MSEK 900 • 600 300 0 -300 -600 -900 -1 200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 3
Slide 4: Total market occupancy: Sweden, Norway, Finland, Denmark
SWEDEN (TOTAL MARKET OCCUPANCY) NORWAY (TOTAL MARKET OCCUPANCY) 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% FINLAND (TOTAL MARKET OCCUPANCY) DENMARK (TOTAL MARKET OCCUPANCY) 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Source: Benchmarking Alliance 4
Slide 5: Scandic occupied rooms, 7-day rolling
SCANDIC – OCCUPIED ROOMS, 7-DAY ROLLING 2019 2020 2021 2022 • 300 000 250 000 200 000 • 150 000 100 000 50 000 • 0 1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec Source: Scandic Hotels Group 5
Slide 6: Sweden Norway Finland Denmark market trends
140 Sweden Norway Finland Denmark • 130 120 110 100 • 90 80 70 • 60 50 Source: Benchmarking Alliance 6
Slide 7: Improving efficiency
IMPROVING EFFICIENCY WORKING HOURS PER SOLD ROOM, ROLLING 3 MONTHS ¢ WORKFORCE EFFICIENCY HAS 9 ----- —e _ IMPROVED, NOW AHEAD OF Cals) Cale) ale 2019 LEVELS DESPITE LOWER OCCUPANCY _... Ll a : CONTINUED FOCUS ON COST EFFICIENCY & FLEXIBILITY 0 ; ; os 9 Scandic
Slide 8: Working hours per sold room, rolling 3 months
WORKING HOURS PER SOLD ROOM ROLLING 3 MONTHS 3,5 • 3 • 2,5 2 • 1,5 1 • 0,5 • 0 8
Slide 9: Hotel opening pipeline
Year Hotel Destination No. of rooms Q1 2022 Scandic Macherei Munich, Germany New 234 Q1 2022 Scandic Örebro Central Örebro, Sweden New 160 Q2 2022 Scandic Holmenkollen Park Holmenkollen, Norway Reopening 376 Reopening after renovation and extension Q2 2022 Scandic Nørreport Copenhagen, Denmark New 1
Slide 10: 15% of leases expire in 2022/2023
15% OF LEASES EXPIRE IN 2022/2023 LEASE EXPIRY PER YEAR 60% + ABOUT 15% OF LEASES TO BE Sov RENEGOTIATED IN 2022/2023 40% 30% 20% 0% | om \_ o Sees he 6 > bs oy oO <\ 1o ) Sy ky ee ve Ph Ph me gh ro s oS £ a Scandic
Slide 11: Financial update
FINANCIAL UPDATE Scandic
Slide 12: Results by country: Sweden, Norway, Finland
2021 2020 2021 2020 2021 2020 MSEK Sweden 1,225 465 152 -136 12.4% -29.2% Norway 1,136 410 147 6 12.9% 1.5% Finland 844 300 65 -89 7.6% -29.6% Other Europe 577 201 143 -24 24.8% -12.0% Central costs & Group adj. - - -71 -39 - - Group 3,783 1,376 436 -282 11.5% -20.5% 12
Slide 13: Cash flow and adjusted EBITDA
Q4 FY 2021 Adjusted EBITDA 436 6 • Change in working capital 649 1,072 Paid tax -1 -51 Interest paid -99 -266 • Pre-opening costs & other items -16 -64 Cash flow from operations 969 697 Investments in existing operations 37 -58 • Free cash flow before expansion capex 1,006 639 Expansion capex -175 -
Slide 14: Total financial net, reported
Q4 FY 2021 Total financial net, reported -399 -1,606 • of which interest expenses, IFRS 16 -299 -1,194 Financial net excl. IFRS 16 -100 -412 Adjustments to paid financial items • Interest expenses, convertible bond (non-cash) 36 101 Timing difference, interest on bank loans -43 -5 • Other 8 -18 Tota
Slide 15: IFRS impact on net result and debt/equity split
Due to temporary rent discounts and extended maturity of lease portfolio, the negative IFRS impact on net result increased to -581 MSEK in 2021 and is expected to decrease to around -380 MSEK in 2022 With the current portfolio, the negative impact will diminish over time and become positive from 202
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Slide 17: Outlook
OUTLOOK OCCUPANCY 25% IN JANUARY AFTER WEAK START TO YEAR, SCANDIC EXPECTS POSITIVE TREND IN OCCUPANCY POSITIVE VIEW FOR REST OF YEAR FOCUS ON STRENGTHENING RESILIENCE TO ENSURE HIGHER & MORE STABLE EARNINGS a7 Scandic
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