Pandox Ab Class B · OMXSTO:PNDX_B
Pandox Ab Class B — Investor Presentation (December 2019)
44 slides from Pandox Ab Class B's investor presentation, Dec 5, 2019
Slide 1: A strong platform for value creation
A strong platform for value creation Analyst 05 ▪ 12 ▪ 2019 lunch PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 2: Our business concept: a flexible specialist
Our business concept A flexible specialist Pandox’s core If these conditions business is to own are not in place, hotel properties and Pandox can choose lease them to strong to operate the hotel operators hotel itself PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 3: Four operational models
Multiple options Four operational models 1 Lease agreement 2 Management agreement 3 Owned and operated with franchised brand 4 Owned and operated with independent brand PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 4: Clear investment case
Clear investment case Balanced risk Good growth in the tourism and travel market Good growth opportunities Low market share in the hotel property market Pan-European position Strong market position Attractive partner in the hotel market Ability to act throughout the value chain Balanced risk Diversi
Slide 5: Larger and more diversified
Strategic position Larger and more diversified 0.6bn 1 15 Portfolio market value Number of countries Number of destinations *Per 30 September 2019, including communicated but not yet closed acquisitions at announced values (rounded percentages) PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 6: Larger and more diversified
Strategic position Larger and more diversified 64bn 15 89 Portfolio market value Number of countries Number of destinations *Per 30 September 2019, including communicated but not yet closed acquisitions at announced values (rounded percentages) PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 7: The way Pandox creates value
Financial position The way Pandox creates value Active ownership aimed at offering the most attractive platform for hotel operations Cash earnings NAV Profitable Increased Increased operations cash flow value LTV Investment and Financial Acquisitions development flexibility Dividend PANDOX – EXCELLE
Slide 8: Profitable execution of strategy
Financial position Profitable execution of strategy Total net operating income (MSEK) Total cash earnings (MSEK) 3,307 +2.2x 1,988 1,505 894 Q1 2015 Q3 2019 Q1 2015 Q3 2019 RTM RTM RTM RTM PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS © Hilton
Slide 9: European expansion
Strategic position European expansion UK Netherlands Germany Belgium 25bn 2bn Acquisitions Divestments Belgium Ireland Sweden Austria *Per 30 September 2019, including communicated but not yet closed acquisitions at announced values (rounded percentages) PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OP
Slide 10: Summary of previous communication
Combined financial effects from communicated acquisitions during 2019 Summary of previous communication 1 Total acquisition value of 534 MEUR 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 annualised 5
Slide 11: HR Group 1.0
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
Slide 12: Dorint Hotel An den Westfalenhallen Dortmund
HR Group Dorint Hotel An den Westfalenhallen Dortmund City/congress 211 rooms Full-service
Slide 13: Dorint Hotel An Der Kongresshalle Augsburg
HR Group Dorint Hotel An Der Kongresshalle Augsburg City/congress 184 rooms Full-service
Slide 14: Dorint Hotel am Dom Erfurt
HR Group Dorint Hotel am Dom Erfurt City 160 rooms Full-service
Slide 15: 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
Slide 16: Novotel Den Haag World Forum
Grape Hospitality Novotel Den Haag World Forum City/congress 216 rooms Select-service © Abaca Corporate/Annelore Van Herwijnen
Slide 17: Novotel Hannover
Grape Hospitality Novotel Hannover City/congress 205 rooms Full-service © Jacques Yves Gucia
Slide 18: 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
Slide 19: Maritim Hotel Nürnberg
Germany Maritim Hotel Nürnberg City 316 rooms Full-service © Maritim Hotels
Slide 20: HR Group 2.0
Acquisitions in 2019 HR Group 2.0 Property Management 7 hotels 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 initially, converted to Germany revenue-based lease by 2024 PANDOX – EXCELLENCE IN HOTEL OWNERS
Slide 21: HR Group 2.0 hotels
Acquisitions HR Group 2.0 hotels 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 22: 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 64.3bn 85% 15% Property market value Property market value Property market value *Per 30 Se
Slide 23: A pan-European well-diversified portfolio created
Strategic position A pan-European well-diversifiedposition portfoliocreated Size and scale Geographical presence Partner network Portfolio composition Stakeholder recognition PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 24: A well-diversified geographical portfolio
Strategic position Good A well-diversified geographicalportfolio balance 2% ✓ 15 countries 41% ✓ 89 destinations 19% ✓ 28 brands and partners 38% *Per 30 September 2019, including communicated but yet closed acquisitions at announced values (rounded percentages) PANDOX – EXCELLENCE IN HOTEL OWNERSHI
Slide 25: A strong portfolio of brands
Strategic position A strong portfolio of brands Note: The logos are the property of the respective brand owners. 25 EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 26: Combination of network, size, geography and expertise drives business activity
Combination of network, size, Drives business geography and activity expertise PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS 26
Slide 27: Jurys Inn
Investments Jurys Inn 21 hotels Recently completed On-going and planned 2 brands Jurys Inn Belfast The Midland Manchester 4,410 rooms Jurys Inn Croydon Jurys Inn Inverness 20 cities Jurys Inn Oxford NYX Birmingham UK and Ireland PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 28: Hilton
Investments Hilton 7 hotels Recently completed On-going and planned 3 brands DoubleTree by Hilton Montreal 2,244 rooms Hilton Brussels Hilton Garden Inn London 5 cities Grand Place Heathrow Airport UK, Belgium, Finland, Sweden and Canada PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 29: Scandic
Investments Scandic 50 hotels Recently completed On-going and planned 1 brand 10,890 rooms Scandic Hallandia Scandic Luleå 37 cities Scandic Park Stockholm Scandic Kramer Scandic Star Sollentuna Scandic Jyväskylä Sweden, Finland, Scandic Tampere City Norway and Denmark PANDOX – EXCELLENCE IN HOTEL O
Slide 30: Radisson
Investments Radisson 8 hotels Recently completed On-going and planned 1 brand 2,033 rooms Radisson Blu Cologne Radisson Blu Bremen 8 cities Radisson Blu Basel Radisson Blu Bodø Germany, Sweden, Norway, UK and Switzerland PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 31: Nordic Choice Hotels
Investments Nordic Choice Hotels 11 hotels On-going and planned 3 brands Clarion Collection Arcticus 1,800 rooms Quality Park Södertälje 10 cities Comfort Börsparken Oslo Sweden and Norway PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 32: NH Hotels
Investments NH Hotels 7 hotels Recently completed 2 brands On-going and planned 1,681 rooms NH Vienna Airport NH Brussels Bloom 6 cities NH Brussels EU Berlaymont NH Salzburg City NH Munchen Airport Belgium, Austria NH Frankfurt Airport and Germany PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIO
Slide 33: Elite Hotels
Investments Elite Hotels 2 hotels 1 brand Recently completed 469 rooms Elite Park Avenue Gothenburg 2 cities Elite Stora Hotellet Jönköping Sweden PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 34: Leonardo
Investments Leonardo 18 hotels Recently completed 2 brands 3,547 rooms More than 3,000 rooms 12 cities refurbished, including 131 room expansion in Germany Wolfsburg PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 35: Independent portfolio
Investments Independent portfolio 10 hotels 10 brands Recently completed On-going and planned 2,555 rooms 7 cities Park Centraal Amsterdam Hotel Berlin, Berlin Hotel Hubert Grand Place Airport Hotel Bonus Inn Vildmarkshotellet Kolmården Hotel Pilotti Vantaa Airport Germany, Belgium, Netherlands, UK,
Slide 36: Growth drivers
Growth drivers | Crowne Plaza Le Palace Brussels 36 EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 37: Growth drivers
Growth drivers | Crowne Plaza Le Palace Brussels 37 EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 38: Three categories of destinations
Strategic position Three categories of destinations London Lillehammer Vienna Amsterdam Sheffield Leeds Basel International Domestic Berlin Dublin Stockholm Hamburg Tampere Jönköping Brussels Montreal Regional Wolfsburg Dortmund The Hague Munich Cologne Copenhagen *Per 30 September 2019, including c
Slide 39: Three categories of destinations
Strategic position Three categories of destinations London Lillehammer Vienna Amsterdam Sheffield Leeds 16% 42% Basel Berlin Dublin Stockholm Hamburg Tampere Jönköping International Domestic Brussels Montreal The Hague 42% Munich Wolfsburg Dortmund Regional Cologne Copenhagen *Per 30 September 2019,
Slide 40: Growth in EPRA NAV per share
Financial position Growth in EPRA NAV per share From strong earnings growth and solid value increases in the property portfolio +70% 184.0 164.0 144.5 126.2 107.7 96.3 +19% R12M 2015 Q1 2015 2016 2017 2018 2019 Q3 Per 30 September 2019 in SEK PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS 40
Slide 41: Own investments
Growth drivers Own investments Recently On-going Pipeline completed Driving growth and value by cash flow driving investments with an average return of 8-12 percent PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS 41
Slide 42: Base growth
Conclusion Base growth 9 8 7 6 5 Pandox total sales LFL average growth 4.3 percent 4 Europe RevPAR average growth 3.7 percent 3 2 EU 28 average GDP growth 1.7 percent 1 0 2013 2014 2015 2016 2017 2018 Sept 2019 YTD Source: Eurostat, STR Global, Pandox PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERA
Slide 43: Accelerated growth
Conclusion Accelerated growth Single-assets and Large portfolios small portfolios PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS 43
Slide 44: For presentations www.pandox.se
For presentations www.pandox.se Head office Visiting address Pandox AB (publ) Vasagatan 11 Tel: +46 8 506 205 Box 15 Stockholm www.pandox.se SE-101 20 Stockholm Sweden Org.nr. 556030-7885 Sweden Forward-looking statements. This presentation contains forward-looking statements. Such statements are su