Slide 1: Continued earnings improvement
Q4 2021 presentation Continued earnings improvement Liia Nõu, CEO Anneli Lindblom, CFO Anders Berg, Head of IR 10 February 2022
Slide 2: A well-diversified portfolio
Strategic position A well-diversified portfolio Pandox Property Operator Group Management Activities 157 137 20 Hotel properties Leased properties Operated properties 35,372 29,469 5,903 Rooms Rooms Rooms SEK 62.6 bn 83% 17% Property market value Property market value Property market value Interim r
Slide 3: 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 Q4 2021 10 February 2022 3
Slide 4: Reasons for optimism
Q4 2021 in brief Reasons for optimism +4% +37% +14% MSEK 3,576 Return on equity 1) Growth in total LFL growth in NOI Liquid funds and unutilised net operating income 2) Property Management 3) credit facilities 4) R12M Oct-Dec 2021 Oct-Dec 2021 Per 31 December 2021 1) Measured as growth in EPRA NRV,
Slide 5: Encouraging underlying occupancy trend
Pandox Property Management Encouraging underlying occupancy trend Property Management occupancy 2019-2021 100% 90% 82% 79% 78% 78% 80% 76% 75% 74% 69% 67% 70% 65% 59% 57% 58% 57% 60% 63% 54% 54% 55% 57% 50% 36% 36% 36% 37% 40% 35% 32% 28% 26% 30% 18% 20% 19% 17% 15% 20% 14% 15% 8% 10% 5% 0% Jan Feb
Slide 6: 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 okt-21 nov-21 dec-21 -20% -40% -60% -80% -100% Interstate Resort Airport Suburban Regiona
Slide 7: RevPAR index Q4 2021 vs. Q4 2019
Pandox Property Management RevPAR index Q4 2021 vs. Q4 2019 >90 percent 75-89 percent 50-75 percent <50 percent 44 hotels 27 hotels 35 hotels 21 hotels 35% of total 21% of total 28% of total 17% of total 7
Slide 8: Holiday Inn Brussels Airport
Investments (completed) Holiday Inn Brussels Airport Operator Activities Airport 310 rooms and meeting facilities Own operations with franchise agreement Full renovation and modernisation Lamps and marble recycled from nhow Brussels Bloom Interim report Q4 2021 10 February 2022 8
Slide 9: Quality Grand Borås
Investments (ongoing) Quality Grand Borås Property Management City center 158 rooms and meeting facilities 60 new rooms and new concept Investment of approximately MSEK 140 Interim report Q4 2021 10 February 2022 9
Slide 10: Aparthotel Adagio Edinburgh Royal Mile
Acquisition Aparthotel Adagio Edinburgh Royal Mile Property Management City center 146 rooms Revenue-based lease with minimum guaranteed rent Purchase price of MGBP 40.5 Edinburgh is a high RevPAR market with diversified demand Extended stay has attractive growth prospects Interim report Q4 2021 10
Slide 11: Anneli Lindblom, CFO
Organisation Anneli Lindblom, CFO +20 years as CFO at several public companies Experience from international finance roles in fast moving companies within Professional services as Consulting, Staffing, Healthcare and Telecom CFO as of 1 December 2021 Several board assignments in listed property owne
Slide 12: A strong quarter considering restrictions
Q4 2021 financial summary A strong quarter considering restrictions Continued improvement in demand and earnings Revenue and result (MSEK) 21Q4 20Q4 YoY LFL1) in both business segments y/y Pandox Group revenue 974 687 42% 49% MSEK 144 in variable contribution in Property Pandox Group NOI 568 414 37%
Slide 13: 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 36% of rooms ― More than MSEK 475 per quarter Revenue-based rent of MSEK 144 in Q4 2021 ― Marginal variabl
Slide 14: 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 Approximately 98 percent of the properties externally valued in the past 12 months – on average 1 percentage point below Pandox’s internal valuati
Slide 15: Pandox's approach
Property portfolio Pandox’s approach Value change, MSEK 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 High correlation between restrictions and Property Management -611 -320 -315 -533 -351 -105 -9 97 demand Operator Activities -347 -282 -284 -101 7 -4 57 -23 Total -958 -1,560 -2,159 -2,793 -3,137 -3,246 -
Slide 16: 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 31,905 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 17: …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 Q4 2021 10 February 2022
Slide 18: A quarter with two faces
Hotel market development in Q4 2021 A quarter with two faces Strong first part (Oct-Nov): ― Stable domestic leisure and growing domestic business demand Weak second part (Nov-Dec): ― New restrictions in all markets with Germany particularly cautious Many positive signals pointing towards strong unde
Slide 19: Nordic regional
Hotel market development Nordic regional Monthly occupancy (Open hotels) Weekly occupancy (Open hotels) 100% 100% 90% 90% 80% 80% 70% 66% 64% 61% 63% 62% 63% 63% 70% 58% 60% 60% 48% 50% 38% 39% 50% 40% 36% 35% 37% 30% 31% 31% 40% 30% 30% 20% 10% 20% 0% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Slide 20: Nordic capitals
Hotel market development Nordic capitals Monthly occupancy (Open hotels) Weekly occupancy (Open hotels) 100% 100% 90% 90% 80% 80% 70% 65% 65% 70% 61% 60% 61% 62% 61% 58% 60% 60% 49% 50% 50% 40% 37% 36% 28% 29% 31% 40% 30% 26% 24% 26% 30% 20% 10% 20% 0% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Slide 21: Germany
Hotel market development Germany Monthly occupancy (Open hotels) Weekly occupancy (Open hotels) 100% 100% 90% 90% 80% 80% 70% 63% 63% 61% 70% 60% 55% 53% 60% 50% 50% 42% 50% 40% 37% 34% 33% 31% 29% 30% 40% 30% 24% 26% 25% 27% 30% 20% 10% 20% 0% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Slide 22: Germany regional vs. international
Hotel market development Germany regional vs. international Hamburg weekly occupancy (Open hotels) Frankfurt weekly occupancy (Open hotels) 100% 100% 90% 90% 80% 78% 80% 74% 70% 67% 65% 70% 60% 55% 54% 60% 52% 51% 50% 47% 46% 50% 47% 48% 43% 44% 44% 45% 39% 38% 38% 40% 35% 33% 40% 30% 30% 31% 30% 29
Slide 23: UK Regional
Hotel market development UK Regional Monthly occupancy (Open hotels) Weekly occupancy (Open hotels) 100% 100% 90% 90% 79% 80% 80% 73% 73% 69% 69% 69% 70% 69% 68% 70% 70% 58% 60% 60% 57% 54% 51% 49% 60% 50% 44% 40% 50% 40% 40% 30% 20% 30% 10% 20% 0% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Slide 24: London
Hotel market development London Monthly occupancy (Open hotels) Weekly occupancy (Open hotels) 100% 100% 90% 90% 80% 80% 69% 69% 68% 70% 65% 65% 65% 65% 67% 64% 70% 60% 52% 60% 47% 50% 42% 44% 44% 39% 50% 40% 35% 36% 40% 30% 20% 30% 10% 20% 0% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2
Slide 25: High pent-up demand
Business travel High pent-up demand The pandemic has entered into a new phase High economic activity and strong corporate earnings Positive trend in business demand before new restrictions Pent-up demand for meetings growing for each new round of restrictions Meeting & Event requests in Operator Act
Slide 26: …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 Q4 2021 10 February 2022
Slide 27: Pandemic in new phase brings greater stability
Market outlook Pandemic in new phase brings greater stability High economic activity and pent-up demand for travel Pandemic in new phase will make demand more predictable and stable Good prospects for the hotel market to regain lost ground when restrictions are eased Occupancy going into 2022 at a h
Slide 28: Q&A
Q&A Interim report Q4 2021 10 February 2022 28
Slide 29: Appendix
Appendix Interim report Q4 2021 10 February 2022 29
Slide 30: 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 31: 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 32: 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 Q4
Slide 33: 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