Slide 1: A quarter of strong recovery
Q3 2021 presentation A quarter of strong recovery Liia Nõu, CEO and acting CFO Anders Berg, Head of IR 27 October 2021
Slide 2: Change of guards
Organisation Change of guards Liia Nõu CEO as of 23 August 2021 Anneli Lindblom CFO as of 1 December 2021 Interim report Q3 2021 27 October 2021 2
Slide 3: A well-diversified portfolio
Strategic position A well-diversified portfolio Pandox Property Operator Group Management Activities 156 135 | 136 1) 21 | 20 Hotel properties Leased properties Operated properties 35,226 29,123 | 29,323 6,103 | 5,903 Rooms Rooms Rooms SEK 61.3 bn 83% | 83% 17% | 17% Property market value Property m
Slide 4: A strong network of partners and brands
Strategic position A strong network of partners and brands Pandox cooperates with more than 30 business partners and brands Interim report Q3 2021 27 October 2021 4
Slide 5: On steadier ground
Q3 2021 in brief On steadier ground -2% +17% +11% MSEK 4,202 Return on equity 2) Growth in total LFL growth in NOI Liquid funds and unutilised net operating income 1) Property Management 3) credit facilities R12M Jul-Sep 2021 Jul-Sep 2021 Per 30 September 2021 1) Measured as net operating income Pro
Slide 6: Broad based improvements
Q3 2021 financial summary Broad based improvements Clear improvement in demand and earnings Revenue and result (MSEK) 21Q3 20Q3 YoY LFL1) in both business segments Pandox Group revenue 939 799 18% 25% Higher variable contribution in Property Pandox Group NOI 575 492 17% 24% Management mainly from le
Slide 7: Balanced revenue model
Current revenue Balanced revenue model Minimum rent and fixed rent from Property Full and immediate impact from market recovery Management main source of revenue ― More than MSEK 1,900 per year 35% of rooms ― More than MSEK 475 per quarter ― Revenue-based rent of MSEK 147 in Q3 2021 Limited variable
Slide 8: Improving occupancy
Pandox Property Management Improving occupancy Property Management occupancy 2019—2021 100% 90% 82% 79% 78% 78% 80% 76% 75% 74% 69% 67% 70% 65% 59% 60% 55% 57% 63% 54% 54% 58% 50% 40% 36% 35% 37% 37% 32% 28% 26% 30% 20% 19% 18% 18% 20% 14% 16% 15% 8% 10% 5% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Slide 9: Occupancy by segment indexed vs. 2019
Pandox total portfolio Occupancy by segment indexed vs. 2019 0% jan-20 feb-20 mar-20 apr-20 maj-20 jun-20 jul-20 aug-20 sep-20 okt-20 nov-20 dec-20 jan-21 feb-21 mar-21 apr-21 maj-21 jun-21 jul-21 aug-21 sep-21 -20% -40% -60% -80% -100% Interstate Resort Airport Suburban Regional City Small City Lar
Slide 10: RevPAR index Q3 2021 vs. Q3 2019
Pandox Property Management RevPAR index Q3 2021 vs. Q3 2019 >90 percent 75-89 percent 50-75 percent <50 percent 32 hotels 33 hotels 32 hotels 32 hotels 25% of total 26% of total 26% of total 23% of total Interim report Q3 2021 27 October 2021 10
Slide 11: nhow Brussels Bloom
Investments nhow Brussels Bloom Property Management City center 305 rooms Revenue-based lease with NH Hotel Group Complete renovation Change to dynamic lifestyle brand nhow Interim report Q3 2021 27 October 2021 11
Slide 12: DoubleTree by Hilton Brussels City
Investments DoubleTree by Hilton Brussels City Operator Activities City center 354 rooms and substantial meeting facilities Own operations with franchise agreement Full renovation and rebranding… …to DoubleTree by Hilton Interim report Q3 2021 27 October 2021 12
Slide 13: Hotel property in Nuremberg
Operations taken over and renovation started Hotel property in Nuremberg Operator Activities City center 316 rooms and extensive meeting facilities Lease expired 31 August 2021, operations were taken over and the hotel property was reclassified to Operator Activities A major renovation and repositio
Slide 14: h27 leased to Motel One
New lease agreement h27 leased to Motel One Property Management City center 200 rooms Operations taken over 1 April 2020, after which a full renovation and repositioning of the hotel was undertaken New attractive revenue-based lease with minimum guaranteed rent signed with Motel One 1 September 2021
Slide 15: Valuations based on established model
Property portfolio Valuations based on established model Valuations made according to same method and established cash-flow model used since the IPO 2015 Transaction evidence for yields remains inconclusive Approximately 83 percent of the properties externally valued during the past 12 months – on a
Slide 16: Pandox's approach
Property portfolio Pandox’s approach Value change, MSEK 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 High correlation between restrictions and Property Management -611 -320 -315 -533 -351 -105 -9 demand Operator Activities -347 -282 -284 -101 7 -4 57 Total -958 -1,560 -2,159 -2,793 -3,137 -3,246 -3,198 Proof
Slide 17: Financing and capital structure
Financial position Financing and capital structure EPRA NRV (MSEK) Loan to value (%) Cash and cash equivalents and 34,270 long-term unutilised credit 31,529 Renewed mandate from the AGM facilities (MSEK) 30,813 2021 to issue new shares up to a 50.8 maximum of 10 percent of total 5,221 186.4 outstand
Slide 18: …to get back to full performance
Six development levels… …to get back to full performance 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 Interim report Q3 2021 27 October 2021 1
Slide 19: Substantial improvements
Hotel market development in Q3 2021 Substantial improvements Increased vaccination rates and removed restrictions Strong increase in demand with domestic leisure as the main driver Smaller and regional cities led the recovery and larger cities also improved Domestic business picked-up towards the en
Slide 20: Nordic regional
Hotel market development Nordic regional Monthly occupancy (open hotels) Weekly occupancy (open hotels) 100% 100% 79% 77% 74% 73% 72% 73% 75% 75% 66% 66% 65% 65% 63% 65% 62% 62% 62% 64% 62% 61% 60% 63% 57% 56% 53% 51% 50% 50% 50% 47% 46% 41% 38% 33% 32% 32% 31% 32% 27% 28% 27% 25% 25% 19% 0% 0% Nord
Slide 21: Nordic capitals
Hotel market development Nordic capitals Monthly occupancy (open hotels) Weekly occupancy (open hotels) 100% 100% 75% 75% 62% 58% 60% 54% 56% 55% 53% 53% 53% 52% 52% 52% 54% 53% 52% 51% 51% 50% 50% 47% 50% 42% 36% 35% 33% 35% 33% 31% 31% 31% 28% 23% 25% 25% 25% 22% 22% 21% 22% 23% 17% 13% 0% 0% Nord
Slide 22: Germany
Hotel market development Germany Monthly occupancy (open hotels) Weekly occupancy (open hotels) 100% 100% 75% 75% 63% 63% 64% 58% 61% 60% 59% 59% 61% 60% 59% 61% 55% 56% 58% 52% 54% 50% 46% 50% 45% 41% 43% 44% 35% 37% 38% 32% 34% 27% 29% 24% 24% 25% 25% 17% 15% 15% 17% 15% 12% 12% 12% 8% 0% 0% Germa
Slide 23: Germany regional vs. international
Hotel market development Germany regional vs. international Hamburg monthly occ (open hotels) Frankfurt monthly occ (open hotels) 100% 100% 75% 72% 71% 75% 63% 62% 58% 53% 51% 53% 50% 44% 50% 45% 36% 36% 32% 29% 30% 29% 26% 27% 22% 24% 24% 23% 25% 25% 16% 18% 16% 15% 15% 17% 18% 17% 17% 12% 13% 12%
Slide 24: UK Regional
Hotel market development UK Regional Monthly occupancy (open hotels) Weekly occupancy (open hotels) 100% 100% 77% 76% 78% 78% 79% 80% 80% 78% 79% 77% 74% 75% 75% 69% 72% 72% 73% 75% 71% 71% 66% 67% 68% 63% 61% 53% 53% 50% 50% 47% 44% 38% 34% 34% 30% 30% 27% 31% 25% 24% 25% 25% 21% 23% 0% 0% UK Regio
Slide 25: London
Hotel market development London Monthly occupancy (open hotels) Weekly occupancy (open hotels) 100% 100% 76% 75% 71% 75% 64% 67% 63% 62% 65% 62% 56% 58% 60% 60% 60% 56% 53% 54% 49% 49% 50% 43% 45% 48% 47% 50% 40% 41% 33% 31% 30% 29%29% 25% 28% 23% 24%24% 24% 26% 25% 20% 22% 22% 20% 0% 0% London Occ
Slide 26: Back to office will lead to more travel
Business travel Back to office will lead to more travel High economic activity and corporate profitability Offices are opening up and demand for meetings is growing Companies are reducing internal travel restrictions Pick-up in white collar travel (from low levels) during September/October Mostly bu
Slide 27: …to get back to full performance
Six development levels… …to get back to full performance 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 Interim report Q3 2021 27 October 2021 2
Slide 28: Improved conditions for growth
Market outlook Improved conditions for growth High economic activity and pent-up demand for travel Domestic leisure demand expected to remain strong Gradual increase in business travel expected based on office and trade fair reopenings For 2022, variable rent is likely in a majority of lease agreeme
Slide 29: Pandox Hotel Market Day November 2021
Pandox Hotel Market Day 23 November 2021
Slide 30: Q&A
Q&A Interim report Q3 2021 27 October 2021 30
Slide 31: Appendix
Appendix Interim report Q3 2021 27 October 2021 31
Slide 32: Property Management
Based on 2019 actual revenue and RevPAR Property Management Approximate occupancy level for variable rent Rental income, MSEK Occupancy, % in leases with minimum guaranteed rent Country Approx. occupancy Hotels Rooms Switzerland 40-45% 1 206 Sweden 40-45% 28 5,823 3,129 71 Finland Norway Belgium 45-
Slide 33: Property Management
Based on 2019 actual revenue and RevPAR Property Management Approximate occupancy level for variable rent in leases with minimum guaranteed rent Fully variable leases Total Country Approx. occupancy Hotels Rooms Country Hotels Rooms Hotels Rooms Switzerland 40-45% 1 206 Switzerland - - 1 206 Sweden
Slide 34: Operator Activities
Based on 2019 actual revenue and RevPAR Operator Activities Revenue, MSEK Occupancy, % 2,424 73 Full exposure from the first unit of revenue and cost Belgium Germany Canada UK Denmark Netherlands Finland Total hotels and rooms 7 5 2 2 2 1 1 20 1,955 1,490 952 611 403 216 160 5,787 Interim report Q3
Slide 35: Pandox AB (publ) contact and forward-looking statements
Pandox AB (publ) Box 15 Tel: +46 8 506 205 50 Forward-looking statements. This presentation contains forward-looking statements. Such statements are subject SE-101 20 Stockholm www.pandox.se to risks and uncertainties as various factors, many of which are beyond the control of Pandox AB (publ), may