Slide 1: Year-end report 2016 presentation
Frank Fiskers, President & CEO Jan Johansson, CFO Stockholm, February 23, 2017 Grand Hotel by Scandic, Oslo
Slide 2: FY 2016 highlights
1 LFL RevPAR increased by 5.2 percent on strong demand in all markets. Net sales grew by 12.3 percent driven by higher 2 occupancy, increased rates, new hotels and currency effects. 3 Adjusted EBITDA margin, excluding received compensation from a legal dispute, improved from 10.4 percent to 11.3 per
Slide 3: Market RevPAR growth by country
Sweden Norway % 14.5 % 7.5 7.6 8.5 5.2 2.9 0.4 1.0 Q1 Q2 Q3 Q4 FY -4.8 -1.8 Q1 Q2 Q3 Q4 FY Finland Denmark % % 13.6 13.3 10.8 9.9 10.6 9.3 7.6 7.8 4.1 2,9 Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 FY 3 Market RevPAR growth based on data from Benchmarking Alliance & STR Global.
Slide 4: Hotel openings in 2016
Hotel # Rooms Scandic Gällivare (franchise) 80 Haymarket by Scandic, Stockholm 405 2016 Scandic Aalborg City 168 Scandic Continental, Stockholm 392 Scandic Vaasa 68 Scandic Continental Scandic Aalborg City Haymarket by Scandic 4
Slide 5: Hotel pipeline as per February 1, 2017
Hotel # Rooms Scandic Drammen (January) 287 Scandic Flesland Airport, Bergen (April) 304 Scandic Sluseholmen, Copenhagen (April) New 215 Grand Hotel by Scandic, Oslo (April) New 274 Scandic Lillehammer Hotel, Norway (April) New 303 2017 Scandic Hafjell, Norway (April) New 210 Scandic Sørlandet, Norw
Slide 6: Grand Hotel Oslo and Downtown Camper by Scandic
• Recent agreement with Eiendomsspar to take over Grand Hotel Oslo, the leading hotel in Norway, in April. • Downtown Camper by Scandic in central Stockholm, with 493 rooms, to open in September 2017. • Scandic now have six signature hotels in operation or under development. Grand Hotel Oslo by Scan
Slide 7: Agreement with Pandox for seven Nordic hotels
• Recent agreement with Pandox for portfolio of seven Nordic hotels as of Q2 2017. • Variable leases 1 2 3 • Long term • No consideration 4 5 6 1. Scandic Sluseholmen, Copenhagen 2. Scandic Prince Philip, Stockholm 3. Scandic Kista, Stockholm 4. Scandic Lillehammer Hotel, 5. Scandic Hafjell, 6. Scan
Slide 8: Growth in number of rooms
No of Rooms +4.8% 45 000 +7.1% 43 000 41 000 39 000 37 000 35 000 33 000 31 000 29 000 27 000 25 000 8
Slide 9: Targets and delivery
Target to add 2-4 new hotels per year - the project pipeline is at record levels with 17 new hotels for 2017-2020 Deliver on Rica synergies - on track to reach SEK 180-220m by 2017 Annual revenue growth over a business cycle excluding M&A of at least 5% - 7.3% revenue growth in 2016 Long ter
Slide 10: Scandic
Scandic
Slide 11: Financial results Q4 and FY 2016
The adjusted EBITDA margin, Oct – Dec Jan – Dec excluding one-off effects, improved Change Change from 10.4% to 11.3% in Q4 2016. MSEK 2016 2015 % 2016 2015 % Correspondingly, for FY 2016 the Net sales 3,463 3,085 12.3 13,082 12,192 7.3 improvement was from 10.1% to 11.1%. Adjusted EBITDA 457 33
Slide 12: RevPAR growth in local currencies
RevPAR growth in local currencies was 7.2 percent in Q4 with positive RevPAR RevPAR development on all markets. LFL % change y-o-y local currencies Oct-Dec Jan-Dec Oct-Dec Jan-Dec Sweden 4.7 5.8 7.9 7.5 Norway 1.8 4.3 2.8 4.2 Denmark 9.3 10.8 8.0 10.1 Finland 6.6 8.8 6.7 8.7 Germany 6.9 9.1 6.9 9.
Slide 13: Net sales bridge
Oct – Dec Jan – Dec LFL growth in all segments. MSEK % MSEK % Sales growth was 8.5% 2015 Net sales 3,085 12,192 excluding currency in Q4 and 7.7% for the full year. LFL, sales growth 114 3.7 643 5.3 Of which Sweden 48 250 Norway 21 130 Other Nordics & Europe 45 264 Currency effect 118 3.8 -53 -0
Slide 14: Net sales and adjusted EBITDA by segment
Quarterly, Oct – Dec Net sales Adjusted EBITDA Adjusted EBITDA, % In Sweden, excluding one-offs, the margin was MSEK 2016 2015 2016 2015 2016 2015 up from 17.0% to 17.4% Sweden 1,521 1,337 329 237 21.6 17.7 in Q4. Norway 976 872 90 83 9.2 9.5 Other Nordics & Europe 966 875 141 108 14.6 12.2 Corr
Slide 15: Net debt development
Strong operating cash flow in Q4. MSEK Oct – Dec Jan – Dec Net debt down to SEK 2.7bn at year-end. Opening balance 3,356 3,355 Operating cash flow -603 -891 Currency effects -72 125 Interest paid, net 25 101 Other changes 4 20 Closing balance 2,710 2,710 15
Slide 16: Cash flow and net debt/adjusted EBITDA
Net debt/adjusted EBITDA Jan – Dec Jan – Dec MSEK 2016 2015 down to 1.8x at year-end or 1.9x excluding one-offs. Cash flow before changes in working capital 1,459 1,132 Positive working capital Changes in working capital 150 54 deveopment during the year. Investments -719 -785 Operating cash flo
Slide 17: Financial targets: growth, profitability, capital structure
Growth Profitability Capital structure (1) 7.3% 2016 11.6% LTM 2016 1.8x excl. M&As(2) Adjusted EBITDA margin Net debt / Adjusted EBITDA Net sales growth 12% 12% 3,0 8% 8% 2,5 4% 4% 2,0 0% (4%) 0% 1,5 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Dec 31, 2015 Dec 31, 2016 Target Target Target An
Slide 18: Incoming CEO background
• Various senior roles within Starwood Hotels & Resorts for the last 20 years • Latest operational role was head of Western European operations consisting of 54 hotels • Designated head of EAME integration of Starwood into Marriott following Marriott’s acquisition of Starwood • Master of Business Ad
Slide 19: Drivers of profitable growth
DRIVERS OF PROFITABLE GROWTH Rica synergies Ramp up Market Scandic Network & new hotels growth initiatives expansion improvements & signed pipeline 19
Slide 20: Company website
Please visit our company website www.scandichotelsgroup.com for a comprehensive 2020 company presentation.