Scandic Hotels Group Ab · OMXSTO:SHOT
Scandic Hotels Group Ab — Q3 2023 Earnings Presentation
18 slides from Scandic Hotels Group Ab's earnings presentation, Oct 26, 2023
Slide 1: Scandic Hotels Q3 Report October 26, 2023
SCANDIC HOTELS Q3 REPORT OCTOBER 26, 2023 Scandic Grand Central, Sweden
Slide 2: Scandic Standing Stronger Than Ever
SCANDIC STANDING STRONGER THAN EVER • New record quarter • Good demand from leisure and corporate • Increased occupancy and all-time high RevPAR • High pace within the portfolio development • Important step taken to further improve guest experiences and efficiency Scandic Star Sollentuna , Sweden 2
Slide 3: Stronger Underlying Results
STRONGER QUARTERLY ADJUSTED EBITDA MSEK UNDERLAYING 1 200 RESULTS 900 600 • Excluding one-offs, adjusted EBITDA 300 reached new record levels 0 • Adjusted EBITDA of 1.2 BN SEK, corresponding to a margin of 18.6% -300 -600 • Commercial excellence and efficiency 2020 2021 2022 2023 -900 -1 200 Q1 Q2 Q
Slide 4: Continued Solid Market Development
CONTINUED SOLID MARKET DEVELOPMENT 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
Slide 5: Room Rates on High Levels
50 60 70 80 90 100 110 120 130 140 Jan 2020 Feb 2020 Source: Benchmarking Alliance Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Sweden Oct 2020 Nov 2020 Dec 2020 Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Norway Jul 2021 Aug 2021 Sep 2021 Oct 2021 Nov 2021 Dec 2021 Jan 2
Slide 6: All-Time High RevPAR
20 40 60 80 0 100 120 140 Jan 2020 Feb 2020 Source: Benchmarking Alliance Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 MARKET REVPAR Oct 2020 Nov 2020 Sweden Dec 2020 Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Norway Aug 2021 Sep 2021 Oct 2021 Nov 2021 Dec 2021
Slide 7: New Signings in Q3
NEW SIGNINGS IN Q3 • Exclusive agreements for two hotels in the new event arena Garden Helsinki, Finland Tromsø, Norway Aarhus, Denmark Garden Helsinki, Finland Scandic Go, check-in • A Scandic with 227 rooms and a Scandic Go with 232 rooms (openings expected in 2028) • Key destination with growing
Slide 8: Two Hotels Added to Signature Collection
TWO HOTELS ADDED TO SIGNATURE COLLECTION • Expanding Signature Collection to capture the growing demand in the upscale segment Tromsø, Norway Aarhus, Denmark Aarhus, Denmark Tromsø, Norway • The hotels are already part of the pipeline and will open in 2025 in Tromsø, Norway, and in 2026 in Aarhus, D
Slide 9: A Growing Pipeline
A GROWING PIPELINE Pipeline as of September 30, 2023 No. of Year Hotel Destination rooms Q3 2024 Scandic Go, Fridhemsplan Stockholm, Sweden New 221 Q3 2025 Signature Collection, Tromsø Tromsø, Norway New 305 Q2 2026 Scandic, Ski Oslo, Norway New 220 Q4 2026 Signature Collection, Aarhus Aarhus, Denma
Slide 10: Implementation of a Complete Cloud-Based IT-Solution
IMPLEMENTATION OF A COMPLETE CLOUD-BASED IT-SOLUTION • Implementation of Oracle Hospitality OPERA Cloud for even better guest experiences and increased efficiency • All hotels and central functions on one platform enable, among other things, improved management and steering, booking and pricing • Ne
Slide 11: Financial Update
FINANCIAL UPDATE 11 Scandic Group Head Office, Sweden 1111
Slide 12: Record Net Sales & Stronger Underlying Results
RECORD NET SALES Net sales Adjusted EBITDA Adjusted EBITDA margin & STRONGER MSEK Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 UNDERLAYING RESULTS Sweden 1,862 1,882 405 401 21.7% 21.3% Norway 1,851 1,876 404 425 21.8% 22.7% • Net sales increased 5.2% to 6,307 1,397 1,257 245 233 17.6% 18.5% MSEK
Slide 13: Strong Cash Flow
MSEK Q3 2023 Jan-Sep 2023 STRONG CASH FLOW Adjusted EBITDA 1,173 2,115 Change in working capital -160 -507 Paid tax -15 -94 • Free cash flow of 899 MSEK in the Interest paid 12 -25 quarter driven by strong results Pre-opening costs & other items -11 25 • Working capital impacted by repayment Cash fl
Slide 14: Financing Items
FINANCING ITEMS • Net debt of 1,946 MSEK1 DEBT • Net debt/adjusted EBITDA of 0.8x (0.1x excluding the convertible bond) • Total credit facility of 3,450 MSEK • Liabilities related to variable rent of approximately 400 MSEK to be settled in first half of 2024 WORKING CAPITAL • Influenced by seasonal
Slide 15: Net Financial Items, Reported vs. Cash Flow
NET FINANCIAL ITEMS, REPORTED MSEK Q3 2023 Q3 2022 VS. CASH FLOW Total financial net, reported -510 -436 of which interest expenses, IFRS 16 -444 -372 Financial net excl. IFRS 16 -67 -64 Adjustments to paid financial items • Reported financial net of -510 MSEK incl. IFRS 16 Interest expenses, conver
Slide 16: Concluding Remarks
CONCLUDING REMARKS Scandic Park, Sweden 1616
Slide 17: Outlook
OUTLOOK • With continued good demand from corporate and leisure, we are on track for another strong full year performance • For the fourth quarter, we anticipate occupancy levels in line with last year at higher prices • High level of preparedness for the future and focus on balanced investments and
Slide 18: Scandic Continental, Sweden
18 18 Scandic Continental, Sweden