Slide 1: Interim presentation
Interim presentation 24 April, 2018 Anders Nissen, CEO Liia Nõu, CFO
Slide 2: A stable earnings development
A stable earnings development 1 Profitable acquisitions 21% 2 Positive effects from product development Return on equity2 3 A seasonally weak quarter and Easter effect 24% Flat 21% Growth in total LFL growth in NOI LFL growth in NOI net operating income1 Property Management3 Operator Activities3 1)
Slide 3: Substantial increase in net operating income (total NOI)
Substantial increase in net operating income (total NOI) Based on a combination of factors + Well-performing acquisitions + Positive development in the UK and Ireland + Positive mix effects in Property Management + Stable underlying market conditions Net +116m - Seasonally weak quarter - Negative ca
Slide 4: Focus on profitable growth
Focus on profitable growth High business tempo GROWTH FACTORS Q1’15 – Q1’18 OUTCOME (R12M) 3 000 2,492 ACQUISITIONS INVESTMENTS NEW LEASES 2 500 2 000 1,705 1,505 17bn 1.7bn +60 1 500 1 000 894 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Structural growth in the tourism and 2015 2016 2017 2018 Valu
Slide 5: Portfolio overview
Portfolio overview Well-diversified portfolio dominated by revenue-based leases Pandox Property Operator Group Management Activities 143 128 15 Hotel properties Leased properties Operated properties 31,628 29,918 4,710 Rooms Rooms Rooms 86% 14% Property market value Property market value SEK 52.1bn
Slide 6: The new world of Pandox
The new world of Pandox 2% ✓ 143 hotels ✓ 31,628 rooms 48% ✓ 15 countries 18% ✓ 83 destinations ✓ +20 brands 32% The circles illustrate market value by region as of 31 March 2018 (rounded percentages) PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 6
Slide 7: A broad selection of operators and brands
A broad selection of operators and brands PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS
Slide 8: Positive development in the UK and Ireland
Positive development in the UK and Ireland Acquisition off to a good start a Well-established hotels with strong locations. Good potential to gain market shares. a Good growth in the UK regional hotel market RevPAR increased 2 percent vs a decrease of 1 percent in London. a Strong growth in Ireland
Slide 9: Good growth in Europe (RevPAR Q1 y/y)
Good growth in Europe (RevPAR Q1 y/y) Europe (RevPAR) Selected countries (RevPAR) 12% 8% 7% 7% 7% 10% 7% 10% 6% 6% 8% 5% 6% 5% 6% 4% 4% 2% 3% 2% 1% 1% 2% 0% 1% -1% -2% -2% -2% 0% -4% Q1 2018 Q2 2017 Q1 2017 Q3 2017 Q4 2017 Denmark UK Austria Sweden Norway Germany Finland Ireland Source: STR Global S
Slide 10: Easter weighed on Northern Europe (RevPAR Q1 y/y)
Easter weighed on Northern Europe (RevPAR Q1 y/y) Key markets (RevPAR) Stockholm (RevPAR) 10% 9% 12% 11% 8% 6% 10% 6% 8% 4% 4% 6% 2% 2% 4% 0% 0% 2% 0% -2% -2% -2% -4% -3% -4% -3% -3% -4% -4% -6% -6% -6% -6% -8% -8% Copenhagen Berlin Helsinki Montreal Brussels Frankfurt Stockholm Oslo UK Regional Q1
Slide 11: Financial highlights
Financial highlights Stable earnings development Key figures Comments on the quarter Q1 Q1 chg FY Property Management: LFL1 growth in (MSEK) 2018 2017 % 2017 revenue and net operating income of Revenue 0.5 percent and 0.1 percent, respectively. Property Management (Note 1) 621 474 31 2,202 Net opera
Slide 12: Financial expense
Financial expense More loans in foreign currencies Financial expense Loan portfolio Interest rate swap portfolio Interest rate (Q1’17 vs Q1’18) (End Q1’17 vs end Q1’18) (End Q1’17 vs end Q1’18) (End Q1’17 vs end Q1’18) 26,858 GBP 18% 18,698 Other 16% Other 18,698 18% 17,224 SEK -187 SEK 26,858 27% 2
Slide 13: Positive underlying growth
Positive underlying growth Property Management Net operating income Rental income Mar-Jan 2018 in % Q1 Q1 FY (MSEK) 2018 2017 2017 Sweden 7% Rental income 600 456 2,121 1% UK 7% Other property income 21 18 81 Germany 33% Costs* -93 -88 -321 7% Net operating income 528 396 1,882 Finland *Including pr
Slide 14: Brussels approaching pre-terror levels
Brussels approaching pre-terror levels Operator Activities Net operating income Revenues Jan-Mar 2018 in % Q1 Q1 FY (MSEK) 2018 2017 2017 7% 2% Revenue 431 521 2,067 Belgium Costs -404 -479 -1,743 16% Germany Gross Profit 27 42 324 Canada Add: Depreciation included in costs 39 40 170 UK 53% Net oper
Slide 15: Property portfolio
Property portfolio Marginally lower yields in the quarter Change in value (MSEK) Comments per 31 March, 2018 Total property portfolio market value amounted to MSEK 52,120 (50,121) Average valuation yield for Investment Properties was 5.6 (5.6) percent and for Operating Properties 7.3 (7.3) percent +
Slide 16: Financing and capital structure
Financing and capital structure Solid 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 2018 to issue new shares up to a maximum of
Slide 17: The main drivers for growth in cash earnings
The main drivers for growth in cash earnings Opportunistic acquisitions Operations Portfolio investments Quality portfolio Market growth Organic growth PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 17
Slide 18: Q&A
Q&A 18
Slide 19: Head office Pandox AB (publ)
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