Slide 1: Interim report presentation
Interim report presentation 10 November, 2017 Anders Nissen, CEO Liia Nõu, CFO Forward-looking statements This presentation contains forward- looking statements. Such statements are subject to risks and uncertainties as various factors, many of which are beyond the control of Pandox AB (publ), may c
Slide 2: Good growth and high efficiency
Good growth and high efficiency 1 A good hotel market 20% 2 Successful acquisitions Growth in total cash earnings1 3 Improved profitability in Operator Activities 17% 3% 44% Growth in NOI Growth in NOI Return on equity2 Property Management3 Operator Activities3 1) Measured as EBITDA plus financial i
Slide 3: Hilton London Heathrow Airport
Hilton London Heathrow Airport “Strategic position in one the world’s largest airports and travel destinations” 398 Airport Business and leisure Acquired 2017 rooms Long-term revenue-based Strategic position in Excellent location with lease agreement premium market strong communications PANDOX – EXC
Slide 4: Material increase in net operating income
Material increase in net operating income (total NOI) Based on a combination of factors + Robust underlying demand + Well performing acquisitions + Continued recovery in Brussels Net +101m - New room capacity in Stockholm PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 4
Slide 5: Portfolio overview
Portfolio overview Well-diversified portfolio dominated by leases Focused strategy on large hotel properties in the upper-medium to high-end segments in strategic locations. 3% Active ownership model combining a large, attractive portfolio with excellent operational skills. 8% 8% 35% Property Operat
Slide 6: Good underlying demand in key markets
Good underlying demand in key markets (RevPAR Q3 y/y) Key markets Europe 35% 31% 8% 30% 7% 7% 7% 7% 25% 6% 20% 5% 15% 4% 11% 10% 9% 3% 7% 3% 6% 2% 5% 2% 1% 1% 0% 1% -3% -5% 0% Helsinki Stockholm Oslo Berlin Copenhagen Montreal Frankfurt Brussels Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Source: STR, B
Slide 7: Financial highlights
Financial highlights Steady progress in earnings Key figures Comments on the quarter Q3 Q3 chg FY Property Management: LFL1 growth in (MSEK) 2017 2016 % 2016 revenue and net operating income of Revenue 4 percent and 3 percent, respectively. Property Management (Note 1) 589 479 23 1,787 Net operating
Slide 8: Good demand and profitability
Good demand and profitability Property Management Net operating income Rental income Jul-Sep 2017 in % (MSEK) Q3 Q3 FY 6% 2017 2016 2016 Rental income 569 459 1,717 10% Other property income 20 20 70 40% Costs* -78 -70 -292 11% Net operating income 511 409 1,495 *Including property administration co
Slide 9: Brussels continued to improve
Brussels continued to improve Operator Activities Net operating income Revenues Jul-Sep 2017 in % Q3 Q3 FY (MSEK) 2017 2016 2016 2% Revenue 463 561 2,158 16% Costs -373 -466 -1,866 Gross Profit 90 95 292 Add: Depreciation included in costs 39 35 147 26% 56% Net operating income 129 130 439 NOI margi
Slide 10: Property portfolio
Property portfolio Value increases reflecting underlying performance Change in value (MSEK) Comments per 30 September, 2017 Total property portfolio market value amounted to MSEK 40,951 (38,233). Average valuation yield for Investment Properties was 5.6 (5.7) percent and for Operating Properties 7.2
Slide 11: 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 (net) (%) credit facilities (MSEK) EPRANAV per share, SEK Mandate from the AGM 2017 to issue new shares 21,494 up to a maximum
Slide 12: 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 12
Slide 13: Q&A
Q&A PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 13
Slide 14: Financial calendar
Financial calendar 10 November 2017 Interim report Q3 21 November 2017 Hotel Market Day 15 February 2018 Year-end report 2017 Pandox AB (publ) Box 15 SE-101 20 Stockholm Sweden Visiting address: Vasagatan 11, 9th floor Stockholm Sweden www.pandox.se PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATION