Pandox Ab Class B · OMXSTO:PNDX_B
Pandox Ab Class B — Q4 2019 Earnings Presentation
31 slides from Pandox Ab Class B's earnings presentation, Feb 12, 2020
Slide 1: Strengthened pan-European position
Strengthened pan-European position Anders Nissen, CEO Liia Nõu, CFO Year-end presentation 12 ▪ 02 ▪ 2020 2019 PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS SERRA @Hotel Indigo Brussels City
Slide 2: Robust business platform creates results
The quarter in brief Robust business platform creates results 1 Profitable and value-adding acquisitions 17% R12M 2 Positive underlying demand Return on equity2) 3 Positive rental growth in several markets 10% 11% 3.7% 1.9% -18.5% 1.5% Oct-Dec 2019 Jan-Dec 2019 Oct-Dec 2019 Jan-Dec 2019 Oct-Dec 2019
Slide 3: Tangible increase in NOI
The quarter in brief Tangible increase in NOI • Profitable acquisitions in both business • Renovation of Hotel Indigo Brussels City and segments Hilton Garden Inn Heathrow Airport • Positive underlying demand • A weaker meeting market in Brussels in October • Positive rental growth in several market
Slide 4: Profitable execution of strategy
Financial position Profitable execution of strategy Total net operating income (MSEK) Total cash earnings (MSEK) 3,390 +2.3x 2,159 1,505 894 Q1 2015 Q4 2019 Q1 2015 Q4 2019 RTM RTM RTM RTM PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS © Hilton
Slide 5: A pan-European position created
Strategic position A pan-European position created Size and scale Geographical presence Partner network Portfolio composition Stakeholder recognition PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 6: Good geographical balance
Strategic position Good geographical balance 2% ✓ 15 countries 41% ✓ 90 destinations 19% ✓ >30 brands and partners 38% PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 7: A strong network of brands and partners
Strategic position A strong network of brands and partners Note: The logos are the property of the respective brand owners. PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 8: Expansion in major markets in Europe
Summary of acquisitions in 2019 Expansion in major markets in Europe 1 Total acquisition value of MEUR 537 2 13 hotels, 2,834 rooms in 11 cities in Germany and Netherlands 3 7 new cities, 5 new brands, 3 new partners 4 MEUR 30.8 in net operating income annualised1) 1) Value at announcements PANDOX –
Slide 9: HR Group 1.0 hotels
Acquisitions in 2019 HR Group 1.0 3 hotels Sale-and-lease-back Property Management 565 rooms with HR Group under MEUR 103 3 cities the Dorint brand Yield 5.6% Revenue-based lease Germany PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS
Slide 10: Dorint Hotel An den Westfalenhallen Dortmund
HR Group 1.0 Dorint Hotel An den Westfalenhallen Dortmund City/congress 211 rooms Full-service PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS
Slide 11: Dorint Hotel An Der Kongresshalle Augsburg
HR Group 1.0 Dorint Hotel An Der Kongresshalle Augsburg City/congress 184 rooms Full-service PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS
Slide 12: Dorint Hotel am Dom Erfurt
HR Group 1.0 Dorint Hotel am Dom Erfurt City 160 rooms Full-service PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS
Slide 13: Grape Hospitality
Acquisitions in 2019 Grape Hospitality 2 hotels 421 rooms Sale-and-managed-back Operator Activities 2 cities with Grape Hospitality MEUR 83 under the Novotel Yield 6.5% Germany brand Netherlands PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS
Slide 14: Novotel Den Haag World Forum
Grape Hospitality Novotel Den Haag World Forum City/congress 216 rooms Integrated full-service PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS © Abaca Corporate/Annelore Van Herwijnen
Slide 15: Novotel Hannover
Grape Hospitality Novotel Hannover City/congress 205 rooms Full-service PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS © Jacques Yves Gucia
Slide 16: Maritim Hotel Nürnberg
Acquisitions in 2019 Maritim Hotel Nürnberg 1 hotel Great potential from Property Management 316 rooms value-adding MEUR 61 1 city investments and Yield 5.4% repositioning Short term fixed lease Germany PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OP
Slide 17: Maritim Hotel Nürnberg
Germany Maritim Hotel Nürnberg City 316 rooms Full-service PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS
Slide 18: HR Group 2.0
Acquisitions in 2019 HR Group 2.0 7 hotels Property Management Sale-and-lease-back MEUR 290 1,532 rooms with HR Group under Yield 5.7% 5 cities the Dorint, Pullman and Initially fixed lease, Mercure brands converted to revenue- Germany based lease by 2024 PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND O
Slide 19: 7 hotels in Germany
HR Group 2.0 7 hotels in Germany Dorint Am Main Tanus Zentrum Dorint Parkhotel Bad Neuenahr Hotel Pullman Stuttgart Fontana Franfurt/Sulzbach Mercure Hotel Frankfurt Airport 238 rooms 252 rooms 282 rooms 150 rooms Mercure Hotel Frankfurt Eschborn Ost Mercure Hotel München Neuperlach Süd Mercure Hote
Slide 20: A well-diversified portfolio
Strategic position A well-diversified portfolio Pandox Group Property Management Operator Activities 156 35,001 138 29,621 18 5,380 Hotel properties Rooms Leased properties Rooms Operated properties Rooms SEK 64.1bn 85% 15% Property market value Property market value Property market value Including
Slide 21: Growth in most countries
RevPAR Q4 y/y Growth in most countries Europe (RevPAR) Selected countries (RevPAR) 10% 8% 8% 7% 8% 7% 6% 6% 4% 5% 4% 3% 4% 4% 2% 1% 1% 0% 3% 0% 2% 2% -1% 2% -2% 1% 1% -4% -4% 0% -6% UK Austria Denmark Norway Sweden Ireland Germany Finland Q2 2019 Q3 2019 Q1 2019 Q4 2019 Q4 2018 Rounded figures Sourc
Slide 22: Negative supply effects in several markets
RevPAR Q4 y/y Negative supply effects in several markets Key markets (RevPAR) Stockholm (RevPAR) 7% 5% 6% 6% 4% 4% 5% 4% 3% 3% 4% 3% 3% 3% 2% 2% 2% 2% 1% 1% 0% 0% 0% 0% -1% -1% -1% -2% -2% -3% -2% -3% -2% -4% -3% Copenhagen Berlin Helsinki Frankfurt Montreal Oslo Stockholm Brussels UK Regional Q4 20
Slide 23: A stable quarter
Group financials A stable quarter Key figures Comments on the quarter Oct-Dec Oct-Dec chg FY Property Management: LFL1 increase in revenue and net (MSEK) 2019 2018 % 2019 operating income of 4.4 and 3.7 percent respectively Revenue Property Management (Note 1) 810 749 8 3,129 Operator Activities: LF
Slide 24: Improved organic growth
Property Management Improved organic growth Net operating income Rental income Oct-Dec 2019, in % Oct-Dec Oct-Dec FY (MSEK) 6% 2019 2018 2019 2% Sweden Rental income 784 704 3,017 6% 27% Other property income 26 45 112 Germany 7% Costs* -94 -122 -365 UK Net operating income Ex IFRS 16: MSEK 700 716
Slide 25: Renovations and repositionings
Operator Activities Renovations and repositionings Net operating income Revenues Oct-Dec 2019, in % Oct-Dec Oct-Dec FY (MSEK) 11% 1% 0% 2019 2018 2019 Belgium Revenue 645 626 2,424 Canada Costs -536 -507 -1,993 44% 21% Gross Profit 109 119 431 Germany Add: Depreciation included in costs 50 46 194 UK
Slide 26: Steady value increase in the quarter
Property portfolio Steady value increase in the quarter Net operating income Comments per 31 December, 2019 Total property portfolio market value amounted to MSEK 63,469 (55,197) Average valuation yield for Investment Properties was 5.41 (5.51) percent and for Operating Properties 6.41 (6.74) percen
Slide 27: Strong financial position
Financing and capital structure Strong financial position 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 2019 to issue new shares up to a maximum of 10 percent of total outstanding shar
Slide 28: Building capacity for future opportunities
Dividend adjusted to new target range Building capacity for future opportunities Total cash earnings and Dividend payout ratio and Dividend per share in SEK1,2) and dividend in MSEK target range in %1) dividend yield in %3) 2,161 1,890 1,660 50% 50% 50% 4.70 1,289 44% 4.40 42% 4.10 1,130 3.80 3.60 3
Slide 29: The main drivers for growth
Future The main drivers for growth Opportunistic acquisitions Operations Growth investments Diversified portfolio Market growth PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 30: Q&A
Park Centraal Amsterdam Q&A 30
Slide 31: Park Centraal Amsterdam
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