Scandic Hotels Group Ab · OMXSTO:SHOT
Scandic Hotels Group Ab — Q2 2022 Earnings Presentation
17 slides from Scandic Hotels Group Ab's earnings presentation, Jul 15, 2022
Slide 1: Scandic Hotels Q2 Report, July 15, 2022
SCANDIC HOTELS Q 2 R E P O R T, J U LY 1 5 , 2 0 2 2
Slide 2: A Record Quarter
A RECORD QUARTER • Net sales and adjusted EBITDA reached highest levels ever for a quarter • Occupancy rose to 63% and room rates continued to improve • RevPAR fully in line with Q2 2019 • High efficiency and cost control • Several hotel openings and agreement extensions during quarter Scandic Ocean
Slide 3: Adjusted EBITDA at all-time high
SCANDIC – QUARTERLY ADJUSTED EBITDA ADJUSTED MSEK EBITDA AT ALL- 900 TIME HIGH 600 300 0 • Adjusted EBITDA reached 1,083 MSEK in Q2, almost double Q2 2019 -300 • One-off effects of 261 MSEK included -600 in quarter 2019 2020 2021 2022 -900 • Strong hotel market combined with -1 200 high efficiency a
Slide 4: Rapid Market Improvement
RAPID MARKET IMPROVEMENT SWEDEN (TOTAL MARKET OCCUPANCY) NORWAY (TOTAL MARKET OCCUPANCY) 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% FINLAND (TOTAL MARKET OCCUPANCY) DENMARK (TOTAL MARKET OCCUPANCY) 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% Source: Benchmarking Alliance 4
Slide 5: Continued Improvement in Average Room Rates
CONTINUED IMPROVEMENT MARKET AVERAGE ROOM RATE DEVELOPMENT INDEXED TO CORRESPONDING MONTH 2019 140 Sweden Norway Finland Denmark IN AVERAGE 130 ROOM RATES 120 110 • Average room rates continued to 100 grow, exceeding historic levels 90 • Development especially strong in 80 Norway 70 60 50 Source: Be
Slide 6: RevPAR Back at 2019 Levels
MARKET REVPAR REVPAR BACK AT 2019 LEVELS INDEXED TO CORRESPONDING MONTH 2019 Sweden Norway Finland Denmark 140 130 120 110 100 90 • Market RevPAR returned to 2019 80 levels, driven by higher room rates 70 60 50 40 30 20 10 0 Source: Benchmarking Alliance 6
Slide 7: Strengthened Portfolio in Q2
STRENGTHENED PORTFOLIO IN Q2 SCANDIC KIRUNA SCANDIC NØRREPORT Kiruna, Sweden Copenhagen, Denmark • 5 new hotel openings, 1 reopening • Total rooms in operation up by 1,570 to 55,572 SCANDIC GÖTEBORG CENTRAL SCANDIC OCEANHAMNEN Gothenburg, Sweden Helsingborg, Sweden SCANDIC HOLMENKOLLEN PARK SCANDIC
Slide 8: Two Additions to Pipeline in Q2
TWO ADDITIONS TO PIPELINE IN Q2 No. of Year Hotel Destination Rooms Q3 2022 Scandic Helsinki Hub Helsinki, Finland New 350 Q4 2022 Scandic Horsens Opus Horsens, Denmark Take Over 132 Q4 2022 Scandic München Macherei Munich, Germany New 234 Q1 2023 Scandic Frankfurt Hafenpark Frankfurt, Germany New 5
Slide 9: Leases Extended in Q2
23 LEASES EXTENDED IN Q2 • 25 lease agreements extended in 2022, of which 23 in Q2 with terms enabling good profitability and balanced risk for Scandic • Recent agreement to extend leases for 15 hotels with Pandox including joint renovation program • Among other things, Pandox will invest in ventila
Slide 10: Financial Update
FINANCIAL UPDATE 10 Scandic Göteborg Central, Sweden
Slide 11: Highest Margin Ever in Q2
HIGHEST MARGIN MSEK Net sales Adjusted EBITDA Adjusted EBITDA margin EVER IN Q2 Q2 Q2 Q2 Q2 Q2 Q2 2022 2021 2022 2021 2022 2021 • State aid totaled 94 MSEK (203), mainly in Finland and Other Europe Sweden 1,686 460 333 -255 19.7% -55.3% • Result includes estimated 107 MSEK related to agreement with
Slide 12: Strong Cash Flow in Q2
Q2 2022 H1 2022 Adjusted EBITDA 1,083 846 Change in working capital 549 109 STRONG CASH FLOW IN Q2 Paid tax -1 -35 Interest paid -74 -129 Pre-opening costs & other items -54 -81 • Cash flow boosted by strong underlying Cash flow from operations 1,503 711 results combined with positive development in
Slide 13: Financing Items
FINANCING ITEMS • Net debt of 3,316 MSEK including 688 MSEK related to other interest-bearing liabilities DEBT • Total credit facility of 5,352 MSEK following amortization of 484 MSEK in Q2 • Liabilities related to deferred VAT and social security contributions totaling 688 MSEK WORKING reclassified
Slide 14: Net Financial Items, Reported vs. Cash Flow
Q2 2022 H1 2022 NET FINANCIAL Total financial net, reported -479 -933 ITEMS, of which interest expenses, IFRS 16 -365 -708 REPORTED VS. Financial net excl. IFRS 16 -115 -225 CASH FLOW Adjustments to paid financial items • Reported financial net in Q2 was -479 Interest expenses, convertible bond (non
Slide 15: Concluding Remarks
CONCLUDING REMARKS Scandic Oceanhamnen, Sweden
Slide 16: Outlook
OUTLOOK • Positive outlook for July and August with continued strong hotel market expected • High level of preparedness for future challenges such as cost-inflation and weakening of economy • Efficient operations and cost control to enable continued good earnings and strong cash flow Scandic Contine
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