Slide 1: Interim presentation
Interim presentation 12 July, 2019 Anders Nissen, CEO Liia Nõu, CFO
Slide 2: Profitable diversification
Profitable diversification 1 Profitable diversification effects 16% R12M 2 Strong performance for Operator Activities Return on equity2) 3 Stable hotel market 10% 12% 0.3% 0.7% 16.8% 16.9% Q2 2019 H1 2019 Q2 2019 H1 2019 Q2 2019 H1 2019 Growth in total LFL growth in NOI LFL growth in NOI net operati
Slide 3: Tangible increase in total net operating income
Tangible increase in total net operating income Based on a combination of factors + Previous acquisitions + Strong growth in Brussels and other markets + Stable underlying demand 1) Net +85m Q2 2019 2) - Negative calendar effects Net +169m - Increased hotel supply in some markets H1 2019 - Some reno
Slide 4: Focus on profitable growth (R12M)
Focus on profitable growth (R12M) Continously high business tempo reflected in earnings OUTCOME (R12M) 3 500 3,226 3 000 2 500 2 000 +2.1x 1,944 1,505 1 500 +2.2x 1 000 894 500 Total net operating income Total cash earnings 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 2017 2018
Slide 5: Portfolio overview
Portfolio overview Well-diversified portfolio dominated by revenue-based leases Pandox Property Operator Group Management Activities 144 128 16 Hotel properties Leased properties Operated properties 32,281 27,322 4,959 Rooms Rooms Rooms 85% 15% Property market value Property market value SEK 57.6bn
Slide 6: Acquisition of three hotel properties in Germany
Acquisition of three hotel properties in Germany Full-service hotels in growing cities with domestic demand MSEK 103 purchase price Initial yield 5.7 percent Long-term revenue-based leases with HR Group Dorint Hotels & Resorts as brand 565 rooms Well-maintained properties MEUR 6.0 in expected rent (
Slide 7: Three full-service hotels in strategic locations
Three full-service hotels in strategic locations Well-positioned in their markets and with growth potential Dorint Hotel am Dom Erfurt Dorint Hotel an den Westfalenhalle Dortmund Dorint Hotel and der Kongresshalle Augsburg Full-service 160 rooms Full-service 221 rooms Full-service 184 rooms
Slide 8: The world of Pandox including recent acquisition
The world of Pandox including recent acquisition 2% ✓ 147 hotels ✓ 32,846 rooms 45% ✓ 15 countries 20% ✓ 84 destinations ✓ +20 brands 33% The circles illustrate market value by region as of 30 June 2019 (rounded percentages) plus the three hotel properties in Germany at acquisition value and currenc
Slide 9: A broad selection of operators and brands
A broad selection of operators and brands All brands and logos are the property of their respective owner PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS
Slide 10: Uneven development but demand is there (RevPAR Q2 y/y)
Uneven development but demand is there (RevPAR Q2 y/y) Europe (RevPAR) Selected countries (RevPAR) Average growth for the periods April and May 2019 Average growth for the periods April and May 2019 8% 25% 7% 7% 20% 19% 6% 15% 5% 5% 4% 10% 8% 4% 5% 3% 3% 1% 0% 0% 2% -1% 1% -2% 1% -5% 0% -8% 0% -10%
Slide 11: Diversification limits portfolio fluctuations (RevPAR Q2 y/y)
Diversification limits portfolio fluctuations (RevPAR Q2 y/y) Key markets (RevPAR) Stockholm (RevPAR) Average growth for the periods April and May 2019 20% 6% 5% 15% 5% 15% 14% 4% 4% 4% 10% 9% 3% 3% 6% 5% 3% 2% 1% 0% -1% 0% -2% -5% -4% -1% -10% -2% -10% -2% -3% -15% Q1 2019 Q2 2019 Q2 2018 Q3 2018 Q
Slide 12: Financial highlights
Financial highlights Continued positive earnings growth Key figures Comments on the quarter Q2 Q2 chg FY Property Management: LFL1 increase in (MSEK) 2019 2018 % 2018 revenue and net operating income of Revenue Adj for tax 0.4 and 0.3 percent respectively 813 783 791 3 -1 2,971 Property Management (
Slide 13: Positive effects from diversification
Positive effects from diversification Property Management Net operating income Rental income Apr – Jun 2019 in % Q2 Q2 FY (MSEK) 2019 2018 2018 Rental income 772 739 2,809 2%7% Sweden 7% Other property income -30m 11 52 162 UK 30% Costs* -79 -127 -454 Germany 8% Finland Net operating income Ex IFRS
Slide 14: Strong earnings growth
Strong earnings growth Operator Activities Net operating income Revenues Apr – Jun 2019 in % Q2 Q2 FY (MSEK) 2019 2018 2018 11% 2% Revenue 673 565 2,153 Belgium Costs -508 -436 -1,776 Canada Gross Profit 165 129 377 43% Germany 21% Add: Depreciation included in costs 47 38 163 UK Net operating incom
Slide 15: Property portfolio
Property portfolio Good value increase in the quarter Change in value (MSEK) Comments per 30 June, 2019 Total property portfolio market value amounted to MSEK 56,713 (55,197) Average valuation yield for Investment Properties was 5.51 (5.51) percent and for Operating Properties 6.61 (6.74) percent +1
Slide 16: Financing and capital structure
Financing and capital structure Sustained growth in EPRA NAV and maintained financial flexibility 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 2019 to issue new shares up to a maximum
Slide 17: The main drivers for growth
The main drivers for growth Opportunistic acquisitions Operations Growth investments Diversified portfolio Market growth PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 17
Slide 18: Q&A
Hotel Berlin, Berlin Q&A 18
Slide 19: The Hotel Brussels
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