Scandic Hotels Group Ab · OMXSTO:SHOT
Scandic Hotels Group Ab — Investor Day (February 2020)
99 slides from Scandic Hotels Group Ab's investor day presentation, Feb 18, 2020
Slide 1: Scandic Hotels Capital Markets Day
SCANDIC HOTELS CAPITAL MARKETS DAY. February 18, 2020
Slide 2: Agenda
AGENDA 08.50 INTRODUCTION AND FOURTH QUARTER UPDATE Jens Mathiesen, Jan Johansson 09.30 CURRENT STATE AND OUR WAY FORWARD Jens Mathiesen 10.10 OUR FINANCIALS Jan Johansson 10.40 COFFEE BREAK 11.00 SUSTAINABILITY Vanessa Butani 11.30 SCANDIC GO Svein Arild Steen-Mevold 11.50 CONCLUDING REMARKS AND Q&
Slide 3: Q4 Presentation
Q4 PRESENTATION Jens Mathiesen, President and CEO & Jan Johansson, CFO
Slide 4: Continued sales and EBITDA improvement in Q4
CONTINUED SALES AND EBITDA IMPROVEMENT IN Q4 SALES GROWTH 5.1% ADJUSTED EBITDA 504 MSEK (487) STRENGTHENED PORTFOLIO MANAGEMENT LAUNCH OF SCANDIC GO PROPOSAL TO RAISE DIVIDEND TO 3.70 SEK (3.50)
Slide 5: LTM market RevPAR development – continued strong in Finland
6% 6% 0% 0% 2% 2% -4% 8% 10% -4% 8% 10% -2% 4% -2% 4% Jan/18 Jan/18 SWEDEN Feb/18 Feb/18 FINLAND Mar/18 Mar/18 Apr/18 Apr/18 May/18 May/18 Jun/18 Jun/18 Jul/18 Jul/18 Aug/18 Aug/18 Sep/18 Sep/18 Oct-18 Oct/18 Nov-18 Nov/18 Dec-18 Dec/18 Jan/19 Jan/19 Feb/19 Feb/19 Mar/19 Mar/19 Apr/19 Apr/19 May-19
Slide 6: Scandic RevPAR vs the market in Q4
SCANDIC REVPAR VS THE MARKET IN Q4 10% 8% STRONG PERFORMANCE 6% IN FINLAND 4% 2% 0% NEGATIVELY AFFECTED BY CAPACITY INCREASE -2% IN OSLO Sweden Norway Finland Denmark Scandic RevPAR growth in Q4 Market RevPAR growth in Q4 Source: Benchmarking Alliance
Slide 7: Main portfolio changes in Q4
MAIN PORTFOLIO CHANGES IN Q4 • Opening of Scandic Royal Stavanger with 215 rooms • Agreement for Scandic Avenue, a new congress and meeting hotel in central Helsinki with 350 rooms to open in 2022 • Agreement for new hotel in Örebro with 160 rooms to open in 2022 • Exit of Scandic Lappeenranta and S
Slide 8: Net pipeline corresponds to 11% of the existing portfolio
NET PIPELINE CORRESPONDS TO 11% OF THE EXISTING PORTFOLIO Hotels Rooms Share of current portfolio Signed gross pipeline 18 6,212 11.8% Decided exits -3 -330 VERY STRONG PIPELINE FOR 2021 AND 2022 Net pipeline 15 5,882 11.1% Current portfolio 268 52,755
Slide 9: Pipeline focused on attractive locations in key destinations
PIPELINE FOCUSED ON ATTRACTIVE LOCATIONS IN KEY DESTINATIONS Year Hotel Destination # Rooms % of existing portfolio/year Q1 2020 Scandic Voss Voss, Norway New 220 Q2 2020 Scandic Pasila Helsinki, Finland Take-over 178 0.8% Q1 2021 Scandic Nørreport Copenhagen, Denmark New 100 Q1 2021 Scandic Landvet
Slide 10: Hotels in pipeline
HOTELS IN PIPELINE ”Copenhagen Airport” Scandic Landvetter Copenhagen, Denmark Gothenburg, Sweden Railway Station by Scandic Scandic Platinan Helsinki, Finland Gothenburg, Sweden
Slide 11: Hotels in pipeline
HOTELS IN PIPELINE Scandic Spektrum Scandic Aarhus Havn Copenhagen, Denmark Aarhus, Denmark ”Helsingborg Hamn” Scandic Hamburger Börs Scandic Frankfurt Hafenpark Helsingborg, Sweden Turku, Finland Frankfurt, Germany
Slide 12: Strengthened portfolio management
STRENGTHENED PORTFOLIO MANAGEMENT • Svein Arild Steen-Mevold appointed as Chief Portfolio Officer with overall responsibility for portfolio development and management • Coordinating our expertise in everything from lead generation, contract and project management, design & configuration
Slide 13: Launch of Scandic GO
LAUNCH OF SCANDIC GO • New brand with lean customer offering with focus on city locations • A complement to our existing portfolio of full-service Scandic hotels • With Scandic GO we expect to double our yearly rooms growth in the Nordics • Higher share of rooms business means higher margins and cap
Slide 14: Financial update
FINANCIAL UPDATE Jan Johansson, CFO
Slide 15: Continued like-for-like growth in Q4
CONTINUED LIKE-FOR-LIKE GROWTH IN Q4 Oct-Dec Oct-Dec Jan-Dec Jan-Dec LFL SALES GROWTH PER SEGMENT: 2019 2018 % 2019 2018 % Net sales 4,831 4,595 5.1% 18,945 18,007 5,2% Q4 FY FX 33 0.7% 239 1.3% Sweden: 1.5% 1.6% Organic growth 203 4.4% 699 3,9% Norway: -0.6% 0.3% New hotels 169 3.7% 626 3,5% Finlan
Slide 16: Q4: Margin improvement in Finland and Norway
Q4: MARGIN IMPROVEMENT IN FINLAND AND NORWAY Oct-Dec Adjusted MSEK Net sales Adjusted EBITDA EBITDA, % 2019 2018 2019 2018 2019 2018 IMPROVED MARGIN IN Sweden 1,622 1,621 239 244 14.7% 15.1% FINLAND AND NORWAY Norway 1,277 1,260 115 100 9.0% 7.9% Finland 1,222 1,084 216 186 17.7% 17.2% Other Europe
Slide 17: Underlying EPS development
UNDERLYING EPS DEVELOPMENT SEK October-December January-December 2019 2018 2019 2018 Reported EPS 1.21 1.59 7.01 6.54 LAST YEAR'S NUMBERS POSITIVELY INFLUENCED Effect from finance lease -0.63 -0.08 -2.14 -0.26 BY ONE-OFFS, THUS UNDERLYING EPS GROWTH WAS 4% EPS excluding finance lease 1.84 1.67 9.15
Slide 18: Improved cash flow
IMPROVED CASH FLOW 2019 2018 Adjusted EBITDA 2,046 1,957 Change in working capital 158 45 IMPROVED WORKING CAPITAL DEVELOPMENT Paid tax, interest, pre-opening and other items -499 -485 AND LOWER CAPEX Cash flow from operations 1,705 1,517 Investments in existing operations -793 -840 Free cash flow b
Slide 19: Outlook
OUTLOOK WE EXPECT CONTINUED DEMAND GROWTH IN Q1 WITH ESTIMATED LIKE-FOR-LIKE GROWTH OF 1-3% MARGINAL IMPACT FROM INVENTORY CHANGES IN Q1 TOTAL MARKET CAPACITY GROWTH IN 2020 IS EXPECTED TO BE SLIGHTLY LOWER THAN IN 2019
Slide 20: Q&A
Q&A
Slide 21: Current state and our way forward
CURRENT STATE AND OUR WAY FORWARD Jens Mathiesen, President and CEO
Slide 22: Scandic today – solid position in the attractive hospitality market
SCANDIC TODAY – SOLID POSITION IN THE ATTRACTIVE HOSPITALITY MARKET DEMAND MARKET GROWTH POSITION BUSINESS MODEL SUSTAINABILITY CULTURE
Slide 23: Strong culture drives customer satisfaction
STRONG CULTURE DRIVES CUSTOMER SATISFACTION HIGHLY ENGAGED TEAM MEMBERS ATTRACTIVE EMPLOYER SATISFIED AND LOYAL GUESTS
Slide 24: Our strategy
& re A OUR STRATEGY WORLD CLASS NORDIC HOTEL COMPANY GREAT HOTEL EXPERIENCES FOR THE MANY PEOPLE ORGANIC MARGIN CAPITAL DIVIDE GROWTH ‘STRUCTURE 5% 1% 2-3 x 250% BE CARING | BEA PRO BE BOLD = = ENGAGED AND MOTIVATED TEAM MEMBERS SUSTAINABLE BUSINESS ATTRACTIVE BRANDS EFFICIENT AND CUSTOMER OFFERINGS
Slide 25: Unrivalled geographic network
UNRIVALLED GEOGRAPHIC NETWORK AROUND 130 DESTINATIONS 253 5 7 3 SCANDIC SIGNATURE IHG HILTON HOTELS
Slide 26: 2019 was a year of refocusing
2019 WAS A YEAR OF REFOCUSING CONTINUED GROWTH FROM A POSITION OF STRENGTH MEASURES TO DRIVE MARGINS, CASH FLOW AND MARKET POSITION BECOMING THE NORDIC MARKET LEADER 2014 2015 2016 2017 2018 2019 2020 2021-
Slide 27: Variable leases and full control of customer offering
VARIABLE LEASES AND FULL CONTROL OF CUSTOMER OFFERING PORTFOLIO BY LEASE MODEL (SPLIT BY # ROOMS) BRAND & DISTRIBUTION Fixed, 16% HOTEL OPERATION Variable with Variable, 19% fixed minimum guarantee, 65% REAL ESTATE
Slide 28: Several advantages with the variable lease model
SEVERAL ADVANTAGES WITH THE VARIABLE LEASE MODEL ECONOMIES OF SCALE BOTH IN MARGIN STABILITY OPERATIONS AND DISTRIBUTION CONTROL OF CUSTOMER OFFERING SHARED INTEREST WITH LANDLORDS LIMITED PRESENCE FROM INTERNATIONAL TIME TO MARKET HOTEL CHAINS IN THE NORDIC MARKETS
Slide 29: Customer focus and standardization
CUSTOMER FOCUS AND STANDARDIZATION FRONT END – BACK END – GREAT HOTEL STANDARDIZATION EXPERIENCES
Slide 30: Global travel and tourism spending is growing over time
GLOBAL TRAVEL AND TOURISM SPENDING IS GROWING OVER TIME 4,500 SEVERAL GROWTH DRIVERS: 4,000 CAGR 2013-2019 CAGR 2019-2029e 4.3% 3.6% 3,500 Travel industry growing at a premium to GDP 3,000 Low-fare airlines 2,500 2,000 Digital distribution 1,500 Urbanization 1,000 Growing leisure 500 0 Individualiza
Slide 31: Solid Nordic volume demand growth
SOLID NORDIC VOLUME DEMAND GROWTH NORDIC DEMAND 12% GROWTH CORRESPONDS TO 10% CAGR 10-12,000 ROOMS 3-4% PER YEAR, OR ~3M 8% ROOM NIGHTS PER YEAR. 6% 4% 2% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -2% Sweden Norway Finland Denmark Source: National Statistics
Slide 32: Leisure demand growing at 5-6%
LEISURE DEMAND GROWING AT 5-6% 18% 16% CAGR STRUCTURAL 14% 5-6% GROWTH IN THE LEISURE 12% SEGMENT 10% 8% 6% 4% 2% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -2% Sweden Norway Finland Denmark Source: National Statistics
Slide 33: International demand growing at 5-6% per year
INTERNATIONAL (NON-NORDIC) DEMAND GROWING AT 5-6% PER YEAR 18% 16% CAGR INCREASED 14% 5-6% NON-NORDIC DEMAND IN 12% ALL NORDIC MARKETS 10% 8% 6% 4% 2% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -2% Sweden Norway Finland Denmark Source: National Statistics
Slide 34: Robust demand in the capital cities
ROBUST DEMAND IN THE CAPITAL CITIES 18% 16% CAGR URBANIZATION 14% 5-6% DRIVES GROWTH IN 12% THE CAPITAL CITIES 10% 8% 6% 4% 2% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -2% Stockholm Oslo Copenhagen Source: National Statistics
Slide 35: Demand has outgrown supply in the Nordics
DEMAND HAS OUTGROWN SUPPLY IN THE NORDICS 7% 6% DEMAND: ROOM NIGHTS 5% GROWTH 4% SUPPLY GROWTH IN 2020 EXPECTED TO BE 3% SLIGHTLY LOWER THAN IN 2019 SUPPLY: 2% CAPACITY GROWTH 1% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: National Statistics, Benchmarking Alliance
Slide 36: A changing distribution landscape
A CHANGING DISTRIBUTION LANDSCAPE INCREASED PRESENCE FROM GOOGLE META SEARCH IS GROWING, MAKING PRICE INTEGRITY MORE IMPORTANT OTA TAKING STEPS INTO BUSINESS TRAVEL ALTERNATIVE ACCOMMODATION INVENTORY INCREASING DISTRIBUTORS AIMING TO ON ALL PLATFORMS OFFER THE WHOLE VALUE CHAIN
Slide 37: Changed mix over time – direct distribution remains strong
CHANGED MIX OVER TIME – BUT OUR DIRECT DISTRIBUTION REMAINS STRONG 50% 45% DIRECT DISTRIBUTION CORRESPONDS TO ~60% OF SALES 40% 35% 30% MIGRATION TO DIGITAL CHANNELS 25% 20% 15% OTA SHARE BELOW 20% 10% 5% 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 OWN WEB IS GROWING Hotel direct Own w
Slide 38: Different source markets in different channels
DIFFERENT SOURCE MARKETS IN DIFFERENT CHANNELS International VISIBLE AND BOOKABLE IN ALL RELEVANT CHANNELS International FOR INTERNATIONAL REACH Intra-Nordic Intra-Nordic FOCUS ON CONVERTING INTRA-NORDIC BUSINESS TO OWN WEB Own web OTA Source: Scandic
Slide 39: Room nights from six key international markets
ROOM NIGHTS FROM SIX KEY INTERNATIONAL MARKETS 350,000 300,000 Germany 250,000 200,000 UK 150,000 US China 100,000 Netherlands Russia 50,000 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Scandic
Slide 40: Enhancing the customer experience
ENHANCING THE CUSTOMER EXPERIENCE LAUNCH OF NEW ONLINE CHECK IN AND CHECK OUT IN Q4 2020
Slide 41: Scandic Friends – customer loyalty through digitalization
SCANDIC FRIENDS – CUSTOMER LOYALTY THROUGH DIGITALIZATION LARGEST HOTEL PROGRAM IN THE NORDICS >2.5 million MEMBERS >35 % OF ROOM REVENUE
Slide 42: Focus areas to drive margins, cash flow and market position
FOCUS AREAS TO DRIVE MARGINS, CASH FLOW AND MARKET POSITION PORTFOLIO FOOD & CAPEX MANAGEMENT BEVERAGE DIGITALIZATION OPTIMIZED DISTRIBUTION
Slide 43: 1. Portfolio management
1. PORTFOLIO MANAGEMENT • Strengthened portfolio management organization • Launch of Scandic GO PORTFOLIO • Continue to secure a high quality pipeline MANAGEMENT with increased growth
Slide 44: 2. Food and beverage
2. FOOD AND BEVERAGE • Review of costs, concepts and modes of operation throughout the group • Evaluate outsourcing of some outlets FOOD & • All signature hotels charge for breakfast BEVERAGE • Centralized sales of meetings at certain destinations
Slide 45: 3. Capex
3. CAPEX • More structured approach to maintenance capex • Portfolio management now integrated with business-, property- and design development CAPEX • Well invested portfolio after a period of relatively high investments • Maintenance capex should not exceed 4%
Slide 46: 4. Digitalization
4. DIGITALIZATION • Several ongoing development projects to enhance efficiency and customer experience • Launch of online check in and check out in Q4 2020 DIGITALIZATION • Implementation of group-wide ERP-system • Replacing manual processes
Slide 47: 5. Optimized distribution
5. OPTIMIZED DISTRIBUTION • Increased market visibility in digital channels in order to secure our share of leisure and OPTIMIZED international growth DISTRIBUTION
Slide 48: Launch of Scandic GO should support growth and margins
…LAUNCH OF SCANDIC GO SHOULD SUPPORT GROWTH AND MARGINS • With Scandic GO we tap in to the growing economy segment • Significantly widens addressable market • Higher share of rooms business means higher margins • Less capex per room due to configuration • Potential in each capital and larger regiona
Slide 49: Scandic GO allows Scandic to address a larger part of the market
…SCANDIC GO ALLOWS SCANDIC TO ADDRESS A LARGER PART OF THE MARKET Economy Luxury Signature Scandic hotels Present portfolio Future portfolio Signature Scandic GO Scandic hotels
Slide 50: Tapping in to a growing segment
TAPPING IN TO A GROWING SEGMENT COPENHAGEN + AirBNB STOCKHOLM, HELSINKI, OSLO, COPENHAGEN Available rooms Available rooms 25,000 90,000 80,000 20,000 70,000 60,000 15,000 50,000 40,000 10,000 30,000 5,000 20,000 10,000 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 20
Slide 51: Scandic GO increases Scandic's total growth potential in the Nordics
SCANDIC GO INCREASES SCANDIC'S TOTAL GROWTH POTENTIAL IN THE NORDICS ANNUAL NORDIC DEMAND GROWTH SCANDIC’S CURRENT NORDIC POTENTIAL ASSUMING 25% OF 10-12,000 ROOMS PER YEAR PORTFOLIO GROWTH MARKET GROWTH ~1,500 ROOMS PER YEAR ~2,500-3,000 ROOMS PER YEAR
Slide 52: International growth considerations
INTERNATIONAL GROWTH CONSIDERATIONS PROVEN BUSINESS MODEL IN GERMANY SCANDIC WILL EXPLORE GROWTH ONGOING INDUSTRY CONSOLIDATION OPPORTUNITIES OUTSIDE THE NORDICS STRENGTHENED BUSINESS DEVELOPMENT ORGANIZATION SHAREHOLDER VALUE IS KEY! INTERNAL FUNDING CAPACITY
Slide 53: Growth alternatives outside the Nordics
GROWTH ALTERNATIVES OUTSIDE THE NORDICS TAKE-OVER OF SINGLE NEW-BUILD PROJECTS M&A HOTELS AND SMALL CHAINS Control of hotel configuration Increased focus Relatively high but slow process transaction prices
Slide 54: Scandic's growth avenues
SCANDIC’S GROWTH AVENUES CONTINUED ROLL-OUT OF ORGANIC SCANDIC GO GROWTH IN GERMANY EXPLORE SCANDIC IN THE OPERATE OTHER OPPORTUNITIES NORDICS BRANDS OUTSIDE THE NORDICS
Slide 55: Q&A
Q&A
Slide 56: Our financials
OUR FINANCIALS Jan Johansson, CFO
Slide 57: Sales development since 2015
SALES DEVELOPMENT SINCE 2015 CAGR 11.6% MSEK CAGR 2.9% 6 753 FINANCIAL OBJECTIVE: CAGR 6.9% ORGANIC GROWTH OF AT LEAST 5% PER YEAR 2015 Currency New LFL Exits Restel 2019 Total change
Slide 58: Adjusted EBITDA since 2015 – contribution to margin
ADJUSTED EBITDA SINCE 2015 – CONTRIBUTION TO MARGIN MSEK 795 OBJECTIVE: ADJUSTED EBITDA MARGIN OF AT LEAST 11% Total 2015 Currency New LFL Exits Restel 2019 change 10.3% 12.6% 16.1% 13.1% 12.8% 10.8%
Slide 59: Return on capital employed
RETURN ON CAPITAL EMPLOYED 16% 14% 12% 10% 8% 6% 4% 2% 0% 2015 2019 excluding Restel 2019 Restel 2019 Excluding goodwill from the time of the IPO Including goodwill from the time of the IPO
Slide 60: Profitability spread in the hotel portfolio
PROFITABILITY SPREAD IN THE HOTEL PORTFOLIO Share of leased portfolio 60% 9,954 MSEK 24,039 50% 109 98 19,130 40% 6,754 MSEK Hotels 30% Rooms Revenues 20% 38 6,532 2,095 MSEK 10% Adjusted 0% EBITDA >15% 5-15% <5% margin Average margin ~21% Average margin ~11% Average margin ~0%
Slide 61: Performance spread in all categories
PERFORMANCE SPREAD IN ALL CATEGORIES Number of hotels 120 109 98 100 STRICTER INVESTMENT CRITERIA IMPLEMENTED 80 60 38 40 20 EXPECTED ADJUSTED EBITDA Adjusted MARGIN IN PIPELINE >17% 0 EBITDA >15% 5-15% <5% margin Hotels existing since 2015 Restel New hotels
Slide 62: Sensitivity analysis
SENSITIVITY ANALYSIS Share of Compounded revenue Variability variability Cost of goods sold 9% 100% 9% FLEXIBLE COST STRUCTURE AS ~75% Direct varable selling costs 4% 100% 4% OF LEASING COSTS ARE VARIABLE Hotel operations payroll 25% 45% 11% Hotell operations other 11% 35% 4% SG&A 13% 0% 0% EBITDAR
Slide 63: What is IFRS 16?
WHAT IS IFRS 16? Expenses Time Depreciation Interest Lease rent
Slide 64: Investment case – example
INVESTMENT CASE – EXAMPLE SCANDIC IS CONSIDERING INVESTING IN A HOTEL FOR VARIOUS REASONS IT HAS BEEN DISCUSSED WHETHER THE LEASE TERM SHOULD BE 5 OR 20 YEARS WITH OTHERWISE UNCHANGED TERMS. Rooms: 350 Capex: 90 Depreciation (10 years) 9 RevPAR: 825 F&B share: 20% ROI 29% Interest 3% Revenues 132 Gu
Slide 65: IFRS 16 effect – outcome
IFRS 16 EFFECT – OUTCOME 5 years lease 20 years lease Effects in reporting: Non - IFRS 16 IFRS 16 Non - IFRS 16 IFRS 16 Ramped up year 3 Revenue 132 132 132 132 EBITDAR 62 62 62 62 Rent -36 -6 -36 -6 Adj. EBITDA 26 26 EBITDA 26 56 26 56 Depreciation -9 -36 -9 -30 EBIT 17 20 17 26 Financial net -3 -5
Slide 66: Our reporting going forward
OUR REPORTING GOING FORWARD • We will disregard IFRS 16 effects when making investments decisions • Financial objectives and important key ratios will continue to be defined ex IFRS 16 • Complete financial statements will be provided with and without IFRS 16 going forward
Slide 67: Financial position and dividend
FINANCIAL POSITION AND DIVIDEND NET DEBT/ADJUSTED EBITDA DIVIDEND PER SHARE 3 3.7 ADDITIONAL DEBT CAPACITY 3.6 OF AT LEAST 2.5 BSEK 3.5 2 3.4 3.3 3.2 1 3.1 CASH GENERATIVE BUSINESS WITH FREE CASH FLOW OF 3 ~4% OF SALES BEFORE 2.9 EXPANSION CAPEX AND DIVIDEND 0 2.8 2015 2016 2017 2018 2019 2016 2017
Slide 68: Q&A
Q&A
Slide 69: Coffee break
COFFEE BREAK Scandic
Slide 70: Scandic Hotels Capital Markets Day
SCANDIC HOTELS CAPITAL MARKETS DAY.
Slide 71: Sustainability
SUSTAINABILITY
Slide 72: Sustainability
SUSTAINABILITY Vanessa Butani, Director of Sustainable Business
Slide 73: We have a legacy of inspiring change
WE HAVE A LEGACY OF INSPIRING CHANGE
Slide 74: We have the power to drive change
WE HAVE THE POWER TO DRIVE CHANGE
Slide 75: We push ourselves
WE PUSH OURSELVES 1993 2003 Launched the “hang up your towel” initiative Introduced what is now a 159-point that today is the global industry standard standard for accessibility 1996 2008 Began phasing out single-use Started serving local water in sustainable, plastic packaging refillable bottles de
Slide 76: 20 years of Nordic Swan certification
20 YEARS OF NORDIC SWAN CERTIFICATION
Slide 77: We support the UN Sustainable Development Goals
WE SUPPORT THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS
Slide 78: Slide 78
Slide 79: We have ambitious goals for 2020
DIVERSITY & INCLUSION HEALTH Scandic will lead the hotel Scandic will be the premier industry in giving all employees hotel choice for customers who the same opportunities and prioritize a healthy lifestyle and an reflect the society in attractive employer when it comes which it operates. to work-li
Slide 80: We are raising the bar
WE ARE RAISING THE BAR
Slide 81: A world-class Nordic hotel company
A WORLD-CLASS NORDIC HOTEL COMPANY MEET EAT SLEEP SUSTAINABLE HOTEL OPERATIONS Scandic Scandic
Slide 82: Meet Eat Sleep
MEET EAT SLEEP BE THE MOST LEAD THE WAY TO OFFER OUR GUESTS INCLUSIVE BETTER FOOD AND THE MOST COMPANY FOR THE BEVERAGE WITH SUSTAINABLE ROOM MANY PEOPLE LESS IMPACT EXPERIENCE
Slide 83: We run projects that are sustainable
AT SCANDIC, WE DON’T RUN SUSTAINABILITY PROJECTS. WE RUN PROJECTS THAT ARE SUSTAINABLE.
Slide 84: Q&A
Q&A
Slide 85: Scandic GO
SCANDIC GO Svein Arild Steen-Mevold, Chief Portfolio Officer
Slide 86: Scandic GO
SCANDIC GO Scandic
Slide 87: Conceptual target group: people on the go
CONCEPTUAL TARGET GROUP: PEOPLE ON THE GO • People "on-the go”, digitally experienced, looking for a hotel that offers a great location, and a perfect place to sleep. • They are happy to explore the city finding a good restaurant or gym outside the hotel. • They are independent, curious, digital nat
Slide 88: A complement to the Scandic brand
A COMPLEMENT TO THE SCANDIC BRAND Young, vibrant, playful Reliable (You know what you get)
Slide 89: Scandic GO allows Scandic to address a larger part of the market
SCANDIC GO ALLOWS SCANDIC TO ADDRESS A LARGER PART OF THE MARKET Economy Luxury Signature Scandic hotels Present portfolio Future portfolio Signature Scandic GO Scandic hotels
Slide 90: Scandic GO positioning
SCANDIC GO POSITIONING FULL SERVICE ”Economy Design” BASIC DESIGN & LODGING LIFESTYLE ”Economy Easy” SELF SERVICE
Slide 91: Clear differentiation between Scandic GO and Scandic
CLEAR DIFFERENTIATION BETWEEN SCANDIC GO AND SCANDIC Location A-AAA city and city airport locations B-AAA city, roadside and airport locations Room size / main categories 15 (12-18) sqm / one 20 (17-23) sqm / many Public areas All-in-one lounge Expanded In room entertainment, casting / content / fre
Slide 92: Scandic GO builds on Playful Nordic
SCANDIC GO BUILDS ON “PLAYFUL NORDIC” – A SMART PLAYFUL AND URBAN FEELING. A VIVID COLOR SCHEME COMBINED WITH RICH TEXTURE IN THE MATERIALS CREATES A WARM AND FUN ATMOSPHERE WHILE AT THE SAME TIME SIMPLE TO WORK WITH FOR THE HOTELS.
Slide 93: Slide 93
Slide 94: Large economies of scale by leveraging brand, commercial and operating platform
LARGE ECONOMIES OF SCALE BY LEVERAGING BRAND, COMMERCIAL AND OPERATING PLATFORM SHARED SUPPORT SHARED CULTURE & ORGANIZATION BRAND PLATFORM • Marketing • Vision, Mission and Values • Sales • Sustainability • Procurement • Distribution • HR • Finance • IT systems
Slide 95: Our first Scandic GO hotels
OUR FIRST SCANDIC GO HOTELS Scandic Upplandsgatan – Stockholm Scandic No. 53 – Stockholm Scandic Grensen – Oslo Scandic Karl Johan – Oslo Scandic Webers – Copenhagen
Slide 96: Great potential in a growing market
GREAT POTENTIAL IN A GROWING MARKET • Excellent complement to the Scandic offering • Entering a growing segment of the market • Expected higher margins and lower capex per room compared to a full-service Scandic
Slide 97: ila ee
ila ee | ee
Slide 98: Scandic Hotels Capital Markets Day
SCANDIC HOTELS CAPITAL MARKETS DAY. February 18, 2020
Slide 99: Join us for lunch!
JOIN US FOR LUNCH! Scandic