Scandic Hotels Group Ab · OMXSTO:SHOT
Scandic Hotels Group Ab — FY2017 Earnings Presentation
19 slides from Scandic Hotels Group Ab's earnings presentation, 2018
Slide 1: Year-end report 2017
Even Frydenberg, President & CEO Jan Johansson, CFO
Slide 2: Highlights and outlook summary
Continued sales growth driven by new hotels and RevPAR in Norway and Finland Reduced margin in Sweden due to lower occupancy in Stockholm, high costs and effects from cost phasing Actions to improve cost efficiency and sales performance have been implemented Acquisition of Restel completed,
Slide 3: Market RevPAR growth by country
Sweden Norway 14.5 11.7 10.7 8.5 7.5 9.0 7.5 5.2 5.8 2.9 1.3 0.4 -0.3 -0.7 -4.8 -1.8 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Finland Denmark 13.6 13.3 14.2 9.9 10.2 10.8 10.6 9.3 8.4 8.2 7.6 2.9 2.3 4.1 1.8 -4.4
Slide 4: RevPAR development by country
Solid RevPAR growth in RevPAR RevPAR Norway and Finland LFL The decline in Sweden % change y-o-y local currencies Oct-Dec Jan-Dec Oct-Dec Jan-Dec is fully explained by Stockholm Sweden -1.3 1.5 -1.3 2.4 Development in Norway 9.3 9.4 6.9 9.0 Denmark was affected Denmark -3.6 2.1 -4.6 0.9 by hig
Slide 5: Restel acquisition and Finland network
Nationwide network and clear market leader in Finland following acquisition of 43 hotels with around 7,600 rooms Subject to divestment of three hotels in Kuopio, Pori and Lahti 7 hotels operated under IHG brands, all other hotels will be rebranded to Scandic during the first half of 2018 Pos
Slide 6: Hotel openings pipeline 2018-2021
Hotel # Rooms Scandic Central Elverum, Norway (Q1) Franchise 98 Scandic Leknes, Norway (Q1) Franchise 63 Scandic The Mayor, Århus (Q1) Conversion 162 Scandic Frankfurt Museumsufer (Q1) Conversion 293 2018 Scandic Lillestrøm, Oslo (Q1) New 220 Scandic Helsinki Airport, Helsinki (Q1) New 150 Scandic B
Slide 7: New hotel openings
Scandic Lilleström Scandic Frankfurt Museumsufer Scandic The Mayor, Aarhus Scandic Helsinki Airport 7
Slide 8: Scandic
Scandic
Slide 9: Q4 2017 highlights
Revenue growth 8.1% LFL sales growth 3.4% Adjusted EBITDA 333 MSEK (457) in Q4 corresponding to a margin of 8.9% (13.2) Transaction cost for Restel of 35 MSEK in Q4 Net debt/adjusted EBITDA 2.1 including Restel Proposed dividend of 3.40 SEK per share 9 Scandic Aarhus City
Slide 10: Sweden market development in Q4
4 RevPAR decline in Q4 fully attributable to Stockholm 3 Supply growth in Sweden was around 3% both in Q4 and for the full year 2 In Stockholm, supply growth was 6-7% in Q4 while 1 demand growth was slightly positive 0 Occupancy down somewhat in Q4 as supply growth exceeded demand growth -1
Slide 11: Norway market development
10 Relatively stable supply in 2017 Bergen is the only city with significant 8 capacity increase during the year 6 Positive demand development in most regions 4 Recovery in oil destinations 2 Solid increase in average room rate and occupancy 0 Supply Demand Occupancy Average room RevPAR ra
Slide 12: LFL sales growth
Oct– Dec Jan – Dec LFL sales growth mainly driven by MSEK % MSEK % strong development in Norway 2016 Net sales 3,463 13,082 New hotels contributed 6% to sales LFL, sales growth 119 3.4 621 4.7 growth both for the quarter and the full year Of which Sweden 9 98 LFL sales growth % y-o-y Norway 81 3
Slide 13: Financial results summary
Oct– Dec Jan – Dec EPS excluding currency effects Change Change related to the revaluation of loans MSEK 2017 2016 % 2017 2016 % increased to 7.04 SEK (6.85) in 2017 Net sales 3,743 3,463 8.1 14,582 13,082 11.5 Adjusted EBITDA 333 457 -27.1 1,570 1,513 3.8 Transaction costs related to Restel amo
Slide 14: Net sales and adjusted EBITDA by segment
Quarterly, Oct– Dec Net sales Adjusted EBITDA Adjusted EBITDA, % Reduced margin in Sweden in MSEK 2017 2016 2017 2016 2017 2016 Q4 Sweden 1,579 1,521 203 329 12.9 21.6 Norway 1,146 976 113 90 9.9 9.2 Margin improvement in Other Nordics & Europe 1,018 966 157 141 15.4 14.6 Norway and Other Nordic
Slide 15: Sweden: Stockholm occupancy and cost measures
Reduced occupancy in Stockholm in Q4 due to increased supply Costs were not adjusted in line with the weaker LFL sales development in Stockholm Some unfavorable effects from cost phasing between the quarters in 2017 Several measures have been implemented to reduce costs in Stockholm Increa
Slide 16: Restel proforma financials
Adjustment Restel Proforma Restel for financial excl financial Some of Restel’s leases will be treated as MSEK Proforma lease lease financial in Scandic’s accounts Net sales 2,163 - 2,163 The proforma contribution to Scandic’s net Adjusted EBITDA 321 -125 196 results would have been slightly pos
Slide 17: Cash flow and net debt
Jan – Dec Jan – Dec MSEK 2017 2016 Strong operating cash flow before acquisition of Restel Cash flow before changes in working capital 1,348 1,459 Positive impact from changes Changes in working capital 196 150 in working capital, primarily in the fourth quarter Capex -964 -719 Operating cash fl
Slide 18: Outlook for Q1 2018
Scandic Crown, Gothenburg Like-for-like sales growth expected to be positive in line with the Q4 level in the first quarter of 2018, excluding calendar effects Calendar effects to affect sales in Q1 negatively by 4-5 pp Focus on securing cost efficiency and driving revenues in Stockholm Fina
Slide 19: Company website
Please visit our company website www.scandichotelsgroup.com for a comprehensive 1919 company presentation.