Slide 1: Restarting from a strong position
Restarting from a strong position Anders Nissen, CEO Liia Nõu, CFO Q2 2020 15 ▪ 07 ▪ 2020 presentation PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS Lobby @Scandic Kramer, Malmö
Slide 2: A well-diversified portfolio
Strategic position A well-diversified portfolio Pandox Group Property Management Operator Activities 156 35,022 136 29,235 20 5,787 Hotel properties Rooms Leased properties Rooms Operated properties Rooms SEK 62.3bn 84% 16% Property market value Property market value Property market value PANDOX – E
Slide 3: A strong network of brands and partners
Strategic position A strong network of brands and partners Note: The logos are the property of the respective brand owners. PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 4: A quarter to forget and remember
Q2 2020 in brief A quarter to forget and remember Very weak quarter for the hotel market Market bottomed out April and gradually improved from May Domestic demand drives recovery Strengthened financial and liquidity position 1.6% R12M -60% Apr-Jun 2020 -43% Apr-Jun 2020 MSEK 5,516 30 June 2020 Retur
Slide 5: COVID-19 effects on Pandox
Q2 2020 in brief COVID-19 effects on Pandox Very low demand due to COVID-19 and unprecedented government actions Some restrictions lifted in the end of Q2 Minimum and fixed rent main source of income, also expected in Q3 Full effect from cost reductions in Operator Activities throughout Q2 Unrealise
Slide 6: Minimum and fixed rent
Current revenue Minimum and fixed rent Minimum rent and fixed rent main source of revenue Approximately MSEK 500 per quarter Agreements on temporary payment terms when possible and appropriate Rent collection progressing in line with temporary terms No reductions in hotel rents given Gradual increas
Slide 7: Valuations based on established method
Property portfolio Valuations based on established method Value change Comments per 30 June, 2020 Total property portfolio market value amounted to MSEK 62,259 (63,469) Average valuation yield for Investment Properties was 5.42 (5.41) percent and for Operating Properties 6.39 (6.41) percent -1.7% YT
Slide 8: Financing and capital structure
Financial position Financing and capital structure Liquid funds and long-term unutilised EPRA Net Asset Value (MSEK) Loan to value (%) credit facilities (MSEK) EPRA NAV per share, SEK Renewed mandate from the AGM 2020 to issue new shares up to a maximum of 10 percent of total outstanding shares 34,2
Slide 9: Three focus areas
Pandox and COVID-19 Three focus areas Respond – manage the acute phase of the crisis Restart – plan for the recovery Reinvent – what’s next? PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 10: …to get back to full performance
Hotel market development levels… …to get back to full performance Revenue 6 Groups return 5 International and meeting returns 4 Domestic business 3 returns Domestic leisure returns 2 Hotels open up for business 1 Cities and countries open up Restrictions easing gradually Time PANDOX – EXCELLENCE IN
Slide 11: Recovery in different phases
Demand recovery Recovery in different phases The bottom (April-May) 1. • Total lockdown in most countries • Demand bottom in the end of April with slight recovery from May • Occupancy in Europe between 5 – 25 percent Summer (May-August) • Restrictions start to ease – domestic travel allowed 2. • Dom
Slide 12: Recovery in different phases
Demand recovery Recovery in different phases Autumn and year-end • Given no second wave, and restrictions gradually easing: 3. • Hotel market in Q4 indicatively at 25 – 55 percent occupancy • Supported by longer leisure period and business domestic will return • First pick-up in meeting in internati
Slide 13: General comments
Trendspotting 2020 General comments At the moment, demand recovers faster than outlook in Q1 2020 report • Supported by current trend and development in markets ahead of Europe (China) Low F&B activity in hotels Focus on hygiene, cleanliness and safety More digital solutions for contactless and cash
Slide 14: A look ahead and Pandox position
A look ahead and Pandox position Indicative occupancy of 30 – 60 percent possible in the first half of 2021 Supported by stable domestic leisure and business… …and a stronger pick-up in international travel and meetings Pandox has a clear game plan: Respond, Restart, Reinvent… …and a strong financia
Slide 15: …current state
Hotel market development levels… …current state Revenue 6 Group returns 5 International and meeting returns 4 Domestic business 3 returns Domestic leisure returns 2 Hotels open up for business 1 Cities and countries open up Restrictions easing gradually Time PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AN
Slide 16: Q&A
Hotel Mayfair, Copenhagen Q&A 16
Slide 17: Head office
Head office Pandox AB (publ) Box 15 SE-101 20 Stockholm Sweden Visiting address Vasagatan 11 Stockholm Sweden Tel: +46 8 506 205 www.pandox.se Org.nr. 556030-7885 Forward-looking statements. This presentation contains forward- looking statements. Such statements are subject to risks and uncertaintie