Slide 1: Interim presentation
Interim presentation 15 February, 2018 Anders Nissen, CEO Liia Nõu, CFO Forward-looking statements This presentation contains forward- looking statements. Such statements are subject to risks and uncertainties as various factors, many of which are beyond the control of Pandox AB (publ), may cause ac
Slide 2: A solid fourth quarter and a strong full year
A solid fourth quarter and a strong full year Q4 2017 FY 2017 1 Well-performing acquisitions 54% 29% 2 Improved profitability in both segments Growth in total 3 A stable hotel market overall cash earnings1 Q4 2017 FY 2017 Q4 2017 FY 2017 6% 4% 25% 28% 18% Return on equity2 Growth in NOI Growth in NO
Slide 3: Solid increase in net operating income (total NOI)
Solid increase in net operating income (total NOI) Based on a combination of factors + Well-performing acquisitions + Continued recovery in Brussels Q4 2017 + Positive mix effects + Stable market conditions Net +136m FY 2017 Net +442m - New room capacity in Stockholm - Strong comparison in Copenhage
Slide 4: Fast business pace throughout 2017
Fast business pace throughout 2017 Main highlights • Landmark transaction in the UK and Ireland. • Two new lease agreements signed with NH Hotels Group in Brussels. • Directed share issue. Seven new lease Acquisition of Hilton Acquisition of Hotel • Divestment of retail property in agreements signed
Slide 5: Landmark acquisition in the UK and Ireland
Landmark acquisition in the UK and Ireland Meets all Pandox’s strategic criteria 1 21 high quality hotel properties, of which 20 under the Jurys Inn brand. 2 Firmly establishes Pandox in the UK and Ireland. 3 Five markets, 20 cities (including five ‘capital’ cities) and approximately 4,700 rooms. 4
Slide 6: Portfolio overview
Portfolio overview Well-diversified portfolio dominated by leases Pandox Property Operator Group Management Activities 143 127 16 Hotel properties Leased properties Operated properties 85% 15% Property market Property market SEK 50.1bn value value Property market value 5.6% 7.3% Valuation yield Valu
Slide 7: The new world of Pandox
The new world of Pandox Percentage point change in exposure Country Share in % 2017-2015 Sweden 29% -16pp Germany 18% +12pp UK 15% +15pp Belgium 8% -2pp Finland 7% -4pp Denmark 7% -3pp Norway 6% -3pp Ireland 3% -1pp Austria 3% +2pp Canada 2% -1pp Netherlands 2% +1pp Switzerland 1% 0pp Total 100% NM
Slide 8: Increased operator/brand diversification
Increased operator/brand diversification Strong regional operators added Operator/brand share of total rooms 2017 Operator/brand change 2017-2015 Percentage point change in share of total rooms +14pp Jurys Inn (new) +30 +9pp Leonardo (new) +4pp NH Hotels Group (new) +2pp Hilton (expanded) +1pp Holid
Slide 9: Overall good demand in key markets (RevPAR Q4 y/y)
Overall good demand in key markets (RevPAR Q4 y/y) Key markets Europe 25% 8% 20% 7% 7% 7% 20% 7% 17% 6% 15% 14% 6% 12% 5% 10% 10% 4% 5% 3% 3% 0% 0% 2% -5% -3% 1% -7% 0% -10% Q2 2017 Q1 2017 Q3 2017 Q4 2016 Q4 2017 Copenhagen Berlin Helsinki Stockholm Frankfurt Montreal Oslo Brussels Source: STR Glob
Slide 10: New capacity in Stockholm, cyclical recovery in Helsinki
New capacity in Stockholm, cyclical recovery in Helsinki Stockholm (RevPAR) Helsinki (RevPAR) 12% 11% 16% 14% 10% 14% 8% 12% 6% 6% 10% 4% 8% 7% 2% 6% 5% 0% 4% 3% -2% -4% -3% -3% 2% -4% 0% -6% 0% Q2 2017 Q2 2017 Q1 2017 Q3 2017 Q1 2017 Q3 2017 Q4 2016 Q4 2017 Q4 2016 Q4 2017 Source: Benchmarking Alli
Slide 11: Tough comparison in Copenhagen, strong Oslo
Tough comparison in Copenhagen, strong Oslo Copenhagen (RevPAR) Oslo (RevPAR) 20% 16% 15% 15% 14% 14% 14% 12% 12% 11% 10% 10% 10% 5% 8% 2% 1% 6% 0% 4% -5% 2% -7% 0% -10% 0% Q2 2017 Q1 2017 Q3 2017 Q4 2016 Q4 2017 Q2 2017 Q1 2017 Q3 2017 Q4 2016 Q4 2017 Source: Benchmarking Alliance Source: Benchmark
Slide 12: Brussels in recovery mode, Frankfurt trade fair driven
Brussels in recovery mode, Frankfurt trade fair driven Brussels (RevPAR) Frankfurt (RevPAR) 35% 20% 31% 17% 30% 28% 15% 25% 20% 10% 9% 20% 15% 5% 1% 10% 0% 5% 5% -1% -5% 0% -5% -10% -9% -4% -10% -15% Q2 2017 Q4 2017 Q4 2016 Q1 2017 Q3 2017 Q2 2017 Q1 2017 Q3 2017 Q4 2016 Q4 2017 Source: STR Global S
Slide 13: Financial highlights
Financial highlights Solid earnings development Key figures Comments on the quarter Q4 Q4 chg FY FY chg Property Management: LFL1 growth in (MSEK) 2017 2016 % 2017 2016 % revenue and net operating income of Revenue 3 percent and 6 percent, respectively. Property Management (Note 1) 571 458 25 2,202
Slide 14: Overall good demand and improved profitability
Overall good demand and improved profitability Property Management Net operating income Rental income Oct-Dec 2017 in % Q4 Q4 FY FY 4% 8% (MSEK) 2017 2016 2017 2016 Rental income 549 433 2,121 1,717 Other property income 22 25 81 70 8% 39% Costs* -82 -90 -321 -292 Net operating income 490 368 1,882
Slide 15: Brussels continued to improve
Brussels continued to improve Operator Activities Net operating income Revenues Oct-Dec 2017 in % Q4 Q4 FY FY (MSEK) 2017 2016 2017 2016 1% Revenue 528 619 2,067 2,158 22% Costs -429 -528 -1,743 -1,866 Gross Profit 99 91 324 292 Add: Depreciation included in costs 45 39 170 147 53% Net operating inc
Slide 16: Property portfolio
Property portfolio Value increases reflecting underlying performance and divestment Change in value (MSEK) Comments per 31 December, 2017 Total property portfolio market value amounted to MSEK 50,121 (38,233). Average valuation yield for Investment Properties was 5.6 (5.7) percent and for Operating
Slide 17: Financing and capital structure
Financing and capital structure Solid growth in EPRA NAV and maintained financial flexibility Liquid funds and long-term unutilised EPRA Net Asset Value (MSEK) Loan to value (net) (%) credit facilities (MSEK) EPRANAV per share, SEK Mandate from the AGM 2017 to issue new shares up to a maximum of 3,3
Slide 18: Growing dividend
Growing dividend Pay-out ratio well within target range Total cash earnings and Dividend payout ratio and Dividend per share in SEK2 and dividend in MSEK target range in %1 dividend yield in %3 1,660 1,289 60% 1,130 4.40 40% 4.10 3.70 50% 50% 44% 737 570 646 2.9% 2.8% 2.4% 2015 2016 2017p 2015 2016
Slide 19: The main drivers for growth in cash earnings
The main drivers for growth in cash earnings Stable outlook for 2018 Opportunistic acquisitions Operations Portfolio investments Quality portfolio Market growth Organic growth PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 19
Slide 20: Q&A
Q&A PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 20
Slide 21: Financial calendar
Financial calendar 9 April 2018 Annual General Meeting 24 April 2018 Interim report Q1 2018 13 July 2018 Interim report Q1-2 2018 25 October 2018 Interim report Q1-3 2018 Pandox AB (publ) Box 15 SE-101 20 Stockholm Sweden Visiting address: Vasagatan 11, 9th floor Stockholm Sweden www.pandox.se PANDO