Pandox Ab Class B · OMXSTO:PNDX_B
Pandox Ab Class B — Investor Day (May 2016)
58 slides from Pandox Ab Class B's investor day presentation, May 24, 2016
Slide 1: Pandox CMD 2016
24/05/2016 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 cause actual developments and results to differ materially from the ex
Slide 2: Our objectives for today
24/05/2016 Pandox capital market day 2016 Our objectives for today Increase your knowledge about Operator Activities. Describe the opportunities created for Pandox following the change in market conditions. Describe the necessary competences to operate hotels successfully. Give an update on market c
Slide 3: The drivers for Operator Activities
24/05/2016 The drivers for Operator Activities A proactive strategy to create additional value for Pandox Consolidation in the hotel market has led to fewer and larger cooperation partners. Business models in the hotel industry have changed. This has led to a change in the risk profile between hotel
Slide 4: Operator Activities
24/05/2016 Operator Activities Minimises risk and creates opportunities Formed as a response to the change in risk profile between hotel owners and hotel operators. A proactive strategy in which Pandox takes the position in the value chain that benefits the company the most in each individual case.
Slide 5: Hotels in Operator Activities
24/05/2016 Hotels in Operator Activities Belgium – 1,936 rooms – 31 percent of total The Hotel, Brussels Crowne Plaza Brussels – Le Palace Holiday Inn Brussels Airport 421 rooms 354 rooms 310 rooms Hotel BLOOM! Hilton Brussel City Crowne Plaza Antwerp 305 rooms 284 rooms 262 rooms PANDOX – EXCELLENC
Slide 6: The hotels in Operator Activities
24/05/2016 The hotels in Operator Activities Norway – 1,164 rooms – 19 percent of total Hotel Lillehammer Thon Hotel Kristiansand 303 rooms 210 rooms From 28 May2016 Operator activity without property ownership Hotel Hafjell Thon Hotel Fagernes Grand Hotel Oslo 210 rooms 149 rooms 292 rooms From 1 S
Slide 7: Hotels in Operator Activities; Hotel Berlin
24/05/2016 The hotels in Operator Activities Sweden, Denmark and Finland – 949 rooms – 15 percent of total Best Western PLUS Hotel Prince Philip Mr Chip Hotel Hotel Korpilampi 208 rooms 150 rooms 151 rooms First Hotel Copenhagen Urban House 215 rooms 225 rooms / 1,025 beds PANDOX – EXCELLENCE IN HOT
Slide 8: Radisson Blu Bremen and Dortmund
24/05/2016 Radisson Blu Bremen “Full-service city centre hotel for business, meeting and leisure” 235 City Business, leisure and Operations taken over rooms centre meeting in 2013 Change of brand from Hilton to Product development New management Radisson Blu and productivity PANDOX – EXCELLENCE IN H
Slide 9: Urban House
24/05/2016 Urban House “A hotel/hostel hybrid located in the hippest part of Copenhagen, Vesterbro” 1,025 City Operations taken over Leisure beds centre in 2014 Change of concept from poor Creative world for New independent brand economy hotel to hostel next generation PANDOX – EXCELLENCE IN HOTEL O
Slide 10: Key competences in Operator Activities
24/05/2016 Key competences in Operator Activities Pandox needs to understand… Market trends Asset Revenue management strategy Local market Smart conditions investments Productivity Market position Hotel leadership PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 19 Key competences in Operator Act
Slide 11: Key competences Operator Activities
24/05/2016 Key competences Operator Activities Main drivers of cash flow and property value More Better cost Smarter Reduced risk revenues control investments Higher property Increased cash flow value PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 21 Film PANDOX – EXCELLENCE IN HOTEL OWNERSHIP
Slide 12: Introduction to Pandox's operated hotels in Brussels
24/05/2016 Introduction to Pandox’s operated hotels in Brussels Aldert Schaaphok, SVP Pandox Operations Holiday Inn Brussels Airport, 24 May 2016 PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 23 Pandox’s hotels in Brussels Well positioned in their respective market segment – 1,674 rooms in tot
Slide 13: Holiday Inn Brussels Airport; Hotel BLOOM!
24/05/2016 Holiday Inn Brussels Airport “Located close to the airport in a growing area with large corporates” 1 310 Airport Business and meeting Acquired 2007 rooms Modernisation Product development Productivity PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 25 Hotel BLOOM! “A full service hot
Slide 14: Crowne Plaza Le Palace; Hilton Brussels City
24/05/2016 Crowne Plaza Brussels – Le Palace “One of the leading meeting hotels in Brussels” 3 354 City Business, leisure and Acquired 2004 rooms centre meeting Strengthed position towards Product development Productivity meeting segment PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 27 Hilton
Slide 15: The Hotel, Brussels
24/05/2016 The Hotel, Brussels “The leading business and meeting hotel in Brussels” 5 420 City Business, leisure and Acquired 2011 rooms centre meeting Repositioning to New concept and brand Productivity independent brand based on fashion PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 29 Time t
Slide 16: Hotel market update
24/05/2016 Hotel market update Jonas Törner, VP Business Intelligence Hotel BLOOM!, 24 May 2016 PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 31 Market update North America April 2016 74 consecutive months of growth. 2016 estimated to reach record level occupancy… … which is flattening out in
Slide 17: Market update North America; Europe
24/05/2016 Market update North America April 2016 - Montréal International and US arrivals increased by 7 percent and 10 percent respectively in 2015. Strong meeting and event market. Limited supply coming into the market. The largest hotel in the city will be closed one year for renovation (977 roo
Slide 18: Market update Europe; Nordics
24/05/2016 Market update Europe April 2016 London, like the UK as a whole, is trading high up in the business cycle. RevPAR is under pressure from extensive new supply. Paris still suffers from the terrorist attacks in November 2015, pace is currently picking up. London Amsterdam is performing stron
Slide 19: Market update Nordics: Stockholm, Copenhagen
24/05/2016 Market update Nordics April 2016 - Stockholm Positive momentum in the market since summer 2015 equally driven by ADR and demand. Strong meeting & event calendar in T1 2016. Limited supply growth, however, new capacity coming to the market (2016-2017): Scandic Continental, Haymarket, Gener
Slide 20: Market update Nordics: Oslo, Helsinki
24/05/2016 Market update Nordics April 2016 - Oslo The Oslo market is performing well despite the slowdown in the oil sector. Oslo less affected compared to Bergen and Stavanger. Increased consumption and a weak NOK supported the market. Demand main driver of RevPAR growth currently. Limited increas
Slide 21: The hotel market in Brussels
24/05/2016 The hotel market in Brussels Size and supply The hotel market in Brussels in a European context Supply The total hotel market in Belgium comprises 140 000 about 60,000 hotel rooms of which one third, or 120 000 100 000 approximately 21,000 rooms, are located in the 80 000 Brussels area 60
Slide 22: The hotel market in Brussels: demand structure
24/05/2016 The hotel market in Brussels Demand structure Business demand is concentrated to Monday – Thursday and leisure demand to weekends. Brussels is one of Europe’s strongest and most highly ranked meeting markets due to its institutional and political surrounding. Average length of stay 1.9 da
Slide 23: The market in Brussels and opportunities in RMC
24/05/2016 The hotel market in Brussels Development July 2013 – October 2015 115 After a relatively flat development 2010-2013, market momentum started to pick up considerably RevPAR ADR from summer 2013. 110 Growth was mainly leisure driven supported by 105 higher activity at the Zaventem airport (
Slide 24: The hotel market in Brussels
24/05/2016 The market in Brussels Vassilis Syropoulos Hotel BLOOM!, 24 May 2016 PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 47 The hotel market in Brussels Development October 2015 – April 2016 (monthly) March attacks followed by the airport closure 30% Occ %chg accentuated the occupancy dro
Slide 25: Flight arrivals at Brussels Airport
24/05/2016 The hotel market in Brussels History flight arrivals at Brussels Airport The arrival uptrend was interrupted with “Brussels Lockdown” in November 2015. This negative arrival trend continued until March 2016 where terrorist attacks of 22nd March knocked out definitely the last 12-month arr
Slide 26: Revenue Management
24/05/2016 The hotel market in Brussels OTB flight arrivals at Brussels Airport Low booking activity since January impact future 55,000 000 OTB arrivals which now pace -32% Y-0 44,500 500 Y-1 Deepest year-over-year variances show on shorter term over Summer 44,000 000 3 500 3,500 3 000 3,000 2 500 2
Slide 27: A journey in hotel distribution and pricing
24/05/2016 A high level history of hotel distribution A journey in hotel Distribution and Pricing Jimmy Carter signs the airline deregulation act. American Airlines installed the first automated booking system 1987 1946 1978 1959 1986 Marriott incorporated ‘Yield Management’ in the marketing strateg
Slide 28: Hotel distribution 2016
24/05/2016 Hotel distribution 2016… PANDOX REVENUE MANAGEMENT CENTER PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS From an owner’s perspective 1. before 2. then 9 brands 17 brands 8 brands 11 brands 3. now introduction of booking brands PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 28
Slide 29: Digital disruption
24/05/2016 Digital disruption Consumer Stay Brands Source: Booking Brands PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS Consolidation opens doors for new entrants, niche and specialized players PANDOX REVENUE MANAGEMENT CENTER PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 29
Slide 30: Opportunity!
24/05/2016 What does it mean today for us as an owner/operator? PANDOX REVENUE MANAGEMENT CENTER PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS OPPORTUNITY! • In choosing distribution partners • In product development PANDOX REVENUE MANAGEMENT CENTER PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPE
Slide 31: Pandox RMC
24/05/2016 3 Pillars • Knowledge • Data (big and small) • Processes • The right technology and capabilities • The right skills and talent • Break down Silos People Process Technology PANDOX REVENUE MANAGEMENT CENTER PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS PANDOX RMC PANDOX REVENUE MANAGE
Slide 32: A team of highly trained experts with international experience
24/05/2016 A team of highly trained experts with international experience based in one location PANDOX REVENUE MANAGEMENT CENTER PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 64 32
Slide 33: Better forecasting
24/05/2016 Best in class partners PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 65 Better forecasting.. …using… PANDOX REVENUE MANAGEMENT CENTER PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 33
Slide 34: Better pricing
24/05/2016 • Past Data • Weather • Airlines • Forward search and purchase data • Competitor movements and availability • … Predictive Analytics PANDOX REVENUE MANAGEMENT CENTER PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS Better pricing PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 34
Slide 35: Optimizing revenue
24/05/2016 A long time ago A journey in hotel Distribution and Pricing PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 69 Optimizing revenue PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 35
Slide 36: Economies of scale and cost of acquisition management
24/05/2016 Economies of scale and cost of acquisition management PANDOX REVENUE MANAGEMENT CENTER PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS Forecast Link to Optimize productivity planning revenue Manage cost of acquisition PANDOX REVENUE MANAGEMENT CENTER PANDOX – EXCELLENCE IN HOTEL OWNER
Slide 37: Managing hotel performance
24/05/2016 Time to see the hotel PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 73 Managing hotel performance Aldert Schaaphok, SVP Pandox Operations Crowne Plaza – Le Palace, 24 May 2016 PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 74 37
Slide 38: Without data you are just another person with an opinion
24/05/2016 Without data you are just another person with an opinion PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 75 Managing hotel performance Working with the best partners We work with best in class partners in each management discipline: • Market intelligence • Revenue management • Product
Slide 39: Nine perspectives
24/05/2016 Nine perspectives Actively monitored and benchmarked Key revenue Finance and Commercial figures profitability scorecard Distribution cost Productivity Market shares Guest satisfaction Employee satisfaction & loyalty & loyalty Others Service quality Training & development PANDOX – EXCELLEN
Slide 40: Nine perspectives
24/05/2016 Nine perspectives Finance and profitability Key revenue figures Finance and profitability • • Occupancy in % Average rate • GOP +/- % Commercial scorecard • Flow-through • Revenue per room • Total payroll +/- % • Total revenue • EBITDA • Forecast accuracy Distribution cost Productivity Ma
Slide 41: Nine perspectives
24/05/2016 Nine perspectives Distribution cost Key revenue figures Finance and profitability Commercial scorecard • Occupancy in % • GOP +/- % • Sold out efficiency • Average rate • Flow-through • Rate efficiency • Revenue per room • Total payroll +/- % • Value index • Total revenue • EBITDA • Forec
Slide 42: Productivity Management Intelligence
24/05/2016 Productivity productivity Productivity Management Intelligence, a software solution A dynamic performance management collaboration platform for all managers. Measurement to management: Instant - Transparent - Real Time - On Line. Manage the future instead of reporting the past. Consolidat
Slide 43: Nine perspectives
24/05/2016 Nine perspectives Guest satisfaction & loyalty and service quality Key revenue figures Finance and profitability Commercial scorecard • Occupancy in % • GOP +/- % • Sold out efficiency • Average rate • Flow-through • Rate efficiency • Revenue per room • Total payroll +/- % • Value index •
Slide 44: Nine perspectives; Dashboard
24/05/2016 Nine perspectives Other Key revenue figures Finance and profitability Commercial scorecard • Occupancy in % • GOP +/- % • Sold out efficiency • Average rate • Flow-through • Rate efficiency • Revenue per room • Total payroll +/- % • Value index • Total revenue • EBITDA • Forecast accuracy
Slide 45: Managing hotel performance: key takeaways
24/05/2016 Managing hotel performance Key takeaways Accurate resource planning. Improved productivity 1) Adjusted for currency effects and comparable units. PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 89 Time to see the hotel PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 90 45
Slide 46: Four cases to illustrate Pandox's investment strategy
24/05/2016 Short introduction to the business case The Hotel, Brussels Anders Nissen The Hotel, Brussels, 24 May 2016 PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 91 Four cases to illustrate Pandox’s investment strategy 1 2 3 4 ”Large portfolio ”Lease extension ”Taking over of ”Large single h
Slide 47: Business case The Hotel, Brussels
24/05/2016 Business case The Hotel, Brussels Aldert Schaaphok The Hotel, Brussels, 24 May 2016 PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 93 PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 94 47
Slide 48: Business case – The Hotel, Brussels
24/05/2016 Business case – The Hotel, Brussels Possibility to create value with bold measures Full service product with 432 rooms with great potential. Excellent location on Boulevard de Waterloo. Acquisition “free and clear” with full flexibility. Possibility to increase productivity. Increasing lo
Slide 49: Brand story and productivity
24/05/2016 Business case – The Hotel, Brussels Question number one: brand story What hotel? The Hotel. Location: On the Boulevard of The Hotel: 34 boutiques of the world's leading high end luxury and fashion brands. What: Sophisticated elegance in an efficient, smart, yet luxurious business environm
Slide 50: Investment and market analysis for value growth
24/05/2016 Business case – The Hotel, Brussels Question number three: investment and market analysis for value growth Analysis showed clear potential to take a new position in the market. An international hotel for international guests. Acquisition cost MEUR 29m. Additional investment of MEUR 35, of
Slide 51: Financial update
24/05/2016 Financial update Liia Nõu The Hotel, Brussels, 24 May 2016 PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 101 Financial update Contents Segments and business logic. Announced portfolio changes. Operator Activities financials. Recap of Q1 2016: Leonardo, capex and investments, taxes,
Slide 52: Pandox's business segments and operating logic
24/05/2016 Pandox’s business segments and operating logic Property Management Operator Activities Owned and leased hotel properties. Owned and operated hotels. Long term lease agreements and shared capex. Operations and productivity. Strong operators and brands. Different types of agreements. Cash f
Slide 53: Operator Activities key financial highlights
24/05/2016 Operator Activities Key financial highlights Revenue in MSEK Net Operating Income (NOI) NOI R12M, ex GHO in 700 in MSEK MSEK 609 146 160 456 500 445 600 534 536 405 140 450 118 115 366 400 448 104 120 445 442 500 338 401 320 350 367 88 100 400 81 300 304 80 250 300 51 54 60 200 200 33 40
Slide 54: Business highlights January – March 2016
24/05/2016 Business highlights January – March 2016 Good underlying growth Good growth in revenue and profitability, despite negative effects from the terrorist attacks in Brussels and Easter, driven by: (1) a favorable hotel market (2) organic growth from hotels coming back from renovation (3) acqu
Slide 55: Property portfolio; Financing and capital structure
24/05/2016 Property portfolio Slight yield compression and strong cash flows Comments Change in value Investment properties Total property portfolio market value per MSEK 31 March, 2016, amounted to MSEK 31,322. Investment properties, beginning of the period (January 1, 2016) 25 062 + Acquisitions —
Slide 56: Well diversified hotel portfolio; key growth drivers
24/05/2016 Well diversified hotel portfolio Offers stability over the hotel market cycle Balanced Attractive Flexible Strong business market agreements brands mix positions 80% Long term lease agreements High quality International Business 113 hotels portfolio Franchise 20% Full service Regional Lei
Slide 57: Q&A; Summary of Pandox CMD 2016
24/05/2016 Q&A The Hotel, Brussels, 24 May 2016 PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 113 Summary of Pandox CMD 2016 Anders Nissen The Hotel, Brussels, 24 May 2016 PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 114 57
Slide 58: Film
24/05/2016 Film PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 115 PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 116 58