Pandox Ab Class B · OMXSTO:PNDX_B
Pandox Ab Class B — Investor Day (May 2017)
73 slides from Pandox Ab Class B's investor day presentation, May 9, 2017
Slide 1: Balanced potential
Excellence in Hotel Ownership and Operations Balanced potential Anders Nissen, CEO Pandox Capital Market Day 2017 This presentation may contain forward-looking statements. Such statements are based on our current expectations and are subject to risks and uncertainties that could negatively affect ou
Slide 2: Welcome to Pandox capital market day 2017
Welcome to Pandox capital market day 2017 www.pandox.se/CMD2017 #PandoxCMD2017 EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 3: Agenda - Pandox capital market day 2017
Agenda - Pandox capital market day 2017 May 9 (all times CEST) 08:30 Hilton Stockholm Slussen 12:30-13:00 Hotel market update 08:30-09:10 Strategic review Jonas Törner, SVP Business Intelligence Anders Nissen, CEO 13:00-13:30 The Shark project 09:10-09:40 The Nordic lease portfolio Erik Hvesser, SVP
Slide 4: Today's topics
Today’s topics Strategic Lease Hotel Q&A Innovation position model market workshops Platform Activities Drivers Results Trends EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 5: Today's speakers
Today’s speakers Anders Nissen Liia Nõu Anders Berg Martin Creydt Erik Hvesser Helge Krogsbøl Jonas Törner Jacob Rasin Strategic Q&A Q&A Lease Lease Innovation Market Innovation review workshop workshop portfolio portfolio and trends EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 6: Comeback
Comeback EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 7: A new and stronger business platform has been established
A new and stronger business platform has been established The following section is based on the period Q1 2015-Q1 2017 EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 8: Profitable acquisitions
Profitable acquisitions Outside the Nordic region EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 9: Hotels acquired
27 22 2 2 1 Hotels acquired Germany Austria Belgium The Netherlands Purchase price Cash earnings MSEK 8,700 MSEK 320 Including Silken Berlaymont EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 10: Streamlining of portfolio
Streamlining of portfolio Divestment of 9 non-core hotel properties EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 11: Hotels divested
9 8 1 Hotels divested Sweden Belgium Smaller Proceeds of hotels MSEK 1,000 EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 12: More than 40 new and extended lease agreements
More than 40 new and extended lease agreements EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 13: New leases
44 22 19 2 1 New leases Germany Nordics Austria The Netherlands Revenue-based leases EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 14: Active ownership
Active ownership Hotels taken over, repositioned and leased out EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 15: Hotels taken over and repositioned
6 8 Hotels Hotels taken over and repositioned leased out EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 16: Cash flow generating investments
Cash flow generating investments EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 17: MSEK invested since listing and in pipeline
MSEK 907 MSEK 900 invested in pipeline Since listing As of March 31, 2017 EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 18: High financial flexibility
High financial flexibility EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 19: Liquid funds, commitments and loan-to-value
2.3bn 1.0bn Liquid funds and Directed committments share issue 46.8% Strong earnings development Loan-to-value EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 20: Solid financial performance
Solid financial performance EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 21: NOI, EPRA NAV and property market value growth
+43% +35% +40% Market value Net Operating EPRA property Income * NAV ** portfolio*** * On annualised basis ** During the period Q1 2015 – Q1 2017 adjusted for dividend and directed share issue *** During the period Q1 2015 – Q1 2017 EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 22: High business tempo, strong earnings development
High Strong Business Earnings tempo development EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 23: Hotels, rooms and NOI as of March 2017
120 Hotels 26,238 2,038 Rooms NOI MSEK 202 rooms per hotel As per March 31, 2017 EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 24: Pandox's new strategic position
Pandox’s new strategic position EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 25: The same business model
Larger Higher Bigger Unchanged portfolio profitability markets risk profile The same business model EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 26: Film
Film EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 27: Balanced demand
Balanced demand EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 28: Balanced demand, cities and lease-based expansion
A sound mix of international and domestic guests Attractive mix of different cities Expansion based on lease agreements Bigger and stronger company EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 29: Balanced demand
Balanced demand 1997 2007 2017 Countries 1 7 10 Hotels 20 43 120 Domestic demand 82 percent 60 percent 72 percent International demand 18 percent 40 percent 28 percent EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 30: More countries and cities
More countries and cities EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 31: Top destinations
Top destinations EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 32: Amsterdam and Berlin
Amsterdam Berlin “A major leisure and business “The third largest leisure destination in Europe” destination in Europe” Airport passengers Airport passengers 63 million 33 million Population Population 1.3 million 3.5 million Guest nights* Guest nights* 13 million 30 million 32 *ECM Cities Marketing
Slide 33: Brussels and Vienna
Brussels Vienna “A major leisure and business “A historic metropolis and strong convention destination in Europe” destination” Airport passengers Airport passengers 28 million 23 million Population Population 1.0 million 1.7 million Guest nights* Guest nights* 6 million 15 million 33 *ECM Cities Mar
Slide 34: Montreal
Montreal “The cultural and event capital of Canada” Airport passengers 17 million Population 1.6 million Guest nights 10 million 34
Slide 35: Strong regional cities…
Strong regional cities… EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 36: Hamburg, Düsseldorf, Munich, Frankfurt
Hamburg Düsseldorf “One of the richest regions in the EU” “City of fashion, exhibitions and business” Munich Frankfurt “The capital of southern Germany” “Major financial and exhibition hub”
Slide 37: …and domestic cities
…and domestic cities EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 38: Cologne, Dortmund, Bremen and other cities
Cologne Dortmund Bremen Population: 1,060,000 Population: 590,000 Population: 550,000 Mannheim Hannover Baden-Baden Population: 315,000 Population: 520,000 Population: 55,000 38
Slide 39: Nordic international destinations…
Nordic international destinations… EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 40: Stockholm, Copenhagen, Oslo, Helsinki
Stockholm Copenhagen “The Capital of Scandinavia” “Dynamic leisure and business market” Oslo Helsinki “The fastest growing capital in Europe” “City of design, architecture and culture”
Slide 41: …and strong domestic cities
…and strong domestic cities EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 42: Kuopio, Jyväskylä, Jönköping and other cities
Kuopio Jyväskylä Jönköping Population: 110,000 Population: 140,000 Population: 135,000 Linköping Karlstad Luleå Population: 110,000 Population: 90,000 Population: 77,000
Slide 43: Expansion mainly driven by leases…
Expansion mainly driven by leases… Own 5,997 operations Lease 20,241 agreements 3,323 134 6,694 3,077 1997 2007 2017* *As per March 31, 2017 EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 44: …outside Sweden
…outside Sweden 17,642 Non-Sweden Non-Sweden 4,714 8,596 3,211 Sweden 5,303 Sweden Sweden 1997 2007 2017* 2017 *As per March 31, 2017 EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 45: …resulting in a good geographical balance
…resulting in a good geographical balance International 38 percent 38 percent 9,873 rooms Nordics 62 percent 62 percent 16,365 rooms As per March 31, 2017 EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 46: …even greater with Nordic countries treated individually
…even greater with Nordic countries treated individually International International 38 percent 38 percent 38 percent 9,873 rooms Denmark 7 percent Norway 10 percent 7,412 rooms Nordics Finland 12 percent 62 percent 62 percent Sweden 34 percent 34 percent 8,953 rooms As per March 31, 2017 EXCELLENCE
Slide 47: A bigger and stronger company
A bigger and stronger company EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 48: Growth in hotels, rooms and NOI 1997-2017
6x Increase in number of 8x Increase in number of 17x Increase in total NOI hotels 1997-2017 rooms 1997-2017 1997-2017 1.3x increase in room size As per March 31, 2017 EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 49: Solid increase in NOI per room
Solid increase in NOI per room (KSEK) 1.5x 1.2x 82 1.3x 71 54 1997 2007 2017 As per March 31, 2017 EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 50: Balanced risk profile
Attractive mix of demand Attractive mix of cities Attractive mix of lease partners Balanced risk profile EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 51: Four business models as a hotel owner
Four business models as a hotel owner EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 52: Lease model, own operations, management contract
Lease model Own operations franchise Own operations independent Management contract EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 53: Four types of leases
Four types of leases EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 54: Types of leases
Revenue-based leases with guarantee Revenue-based leases without guarantee Fixed leases Special leases (result-based) EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 55: Good prospects to grow the lease portfolio
Good prospects to grow the lease portfolio EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 56: EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 57: EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 58: Advantages with revenue-based leases
Advantages with revenue-based leases EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 59: Advantages of revenue-based leases
Higher revenues in growing market Higher revenues when gaining market shares Operators’ incentives are aligned with Pandox’s Joint objective to create strong hotel products Shared investments Productivity focus Long-term perspective EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 60: Key issues
Key issues EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 61: Key issues in lease agreements
1 How revenues are shared 2 Responsibility for maintenance and investments 3 Influence and cooperation EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 62: How revenues are shared
1 How revenues are shared PX share of International Nordics Room revenue 30-40% 30-40% F&B revenue 6-12% 6-12% Public room rental 20-40% 20-40% Other Case by case Case by case EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 63: Responsibility for maintenance and investments
2 Responsibility for maintenance and investments Owner is responsible for property related investments and maintenance (bathrooms, kitchen, property tech, façade and roof). Differs between Nordics and International. Pandox participates in cash flow driving investments and areas part of operations. E
Slide 64: Maintenance and cash flow driving investments
80m 50m 250m Maintenance Cash flow driving Building structure investments EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 65: NOI margin reflects market practise
NOI margin reflects market practise 85-90% 90-95% Nordics International EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 66: Influence and cooperation
3 Influence and cooperation Cooperation is based on joint strategic plan. Frequent contacts and follow-up on all levels. Pandox has a strategic position. EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 67: Market volatility and effects on rental income
Market volatility and effects on rental income EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 68: Long term growth in key markets
Long term growth in key markets Index = 100 160 Europe (CAGR 2.2%) 155 International cities (CAGR 2.4%) 150 German regional cities (CAGR 2.8%) 145 Swedish domestic cities (CAGR 3.3%) 140 135 130 125 120 115 110 105 100 95 90 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: ST
Slide 69: Crisis and recovery
Crisis and recovery Swedish domestic cities -6% +15% German regional cities -13% +34% Europe -15% +23% International cities -16% +33% 2008-2009 2009-2014 Source: STR Global, SCB EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 70: Effects for operator and Pandox (simplified)
Effects for operator and Pandox (simplified) ”As is” ”10 percent revenue decline” Item MSEK Item MSEK Total revenues 88 Total revenues 80 GOP (42%) 37 GOP (39%) 32 Other cost 2 Other cost 2 Lease cost (34/12) 25 Lease cost (34/12) 23 EBITDA 10 EBITDA 7 Operator EBITDA -3 (-30%) Pandox rental income
Slide 71: Key factors driving Pandox forward
Key factors driving Pandox forward EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 72: Macro, travel and Pandox drivers
Macro Travel Pandox Economic Focused strategy, Disposable income development flexible business model Cheaper travel and execution Technology EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 73: Thank you!
Thank you! EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS