Scandic Hotels Group Ab · OMXSTO:SHOT
Scandic Hotels Group Ab — Q2 2023 Earnings Presentation
16 slides from Scandic Hotels Group Ab's earnings presentation, Jul 14, 2023
Slide 1: Scandic Hotels Q2 Report July 14, 2023
SCANDIC HOTELS Q 2 R E P O R T J U LY 1 4 , 2 0 2 3
Slide 2: Strong quarter with high activity and positive outlook
STRONG QUARTER WITH HIGH ACTIVITY AND POSITIVE OUTLOOK • High demand and record strong RevPAR • Improved net sales and strong results • High level of activity with the guests in focus • New brand – Scandic Go expanding • Positive outlook for the third quarter Scandic Fredrikstad City, Norway 2
Slide 3: Quarterly adjusted EBITDA: strong results
QUARTERLY ADJUSTED EBITDA STRONG RESULTS MSEK 1 200 900 600 • Adjusted EBITDA of 772 (1,083) MSEK 300 • Solid margin development 0 • High demand and a solid market -300 development in combination with good operational performance -600 2020 2021 2022 2023 -900 -1 200 Q1 Q2 Q3 Q4 3
Slide 4: Solid market development
SOLID MARKET DEVELOPMENT 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 positive price development
50 60 70 80 90 100 110 120 130 140 Jan 2020 Feb 2020 Source: Benchmarking Alliance Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sweden Sep 2020 Oct 2020 Nov 2020 Dec 2020 Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 Norway Jun 2021 Jul 2021 Aug 2021 Sep 2021 Oct 2021 Nov 2021 Dec 2021 Jan 2
Slide 6: Record high RevPAR
20 40 60 80 0 100 120 140 Jan 2020 Source: Benchmarking Alliance Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 MARKET REVPAR Oct 2020 Nov 2020 Sweden Dec 2020 Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Norway Jul 2021 Aug 2021 Sep 2021 Oct 2021 Nov 2021 Dec 2021
Slide 7: Scandic Go expanding
SCANDIC GO EXPANDING • Second hotel signed with 221 rooms in downtown Stockholm • Compact rooms and efficient configuration • High share of room revenue and lower capex • Ambition to take a leading position in the fast-growing economy segment Scandic Go 7
Slide 8: Focus on growing pipeline
FOCUS ON GROWING PIPELINE Pipeline as of June 30, 2023 No. of Year Hotel Destination rooms Q3 2025 Scandic Vervet Tromsø Tromsø, Norway New 305 Q1 2026 Scandic in Ski Oslo, Norway New 220 Q4 2026 Scandic Aarhus Harbour Aarhus, Denmark New 342 867 Ongoing extensions 144 Closed for renovation1 637 Exi
Slide 9: Financial update
FINANCIAL UPDATE 9 Scandic CPH Strandpark, Denmark 9
Slide 10: Improved net sales and strong results
Net sales Adjusted Adjusted IMPROVED NET MSEK Q2 2023 Q2 2022 EBITDA Q2 2023 Q2 2022 EBITDA margin Q2 2023 Q2 2022 SALES AND Sweden 1,751 1,686 270 333 15.4% 19.7% STRONG RESULTS Norway 1,548 1,699 285 417 18.4% 24.5% 1,264 1,074 145 186 11.5% 17.4% • Net sales increased 8% to 5,693 MSEK Finland (5,
Slide 11: Good cash flow
MSEK H1 2023 H1 2022 GOOD Adjusted EBITDA Change in working capital 942 -347 846 109 CASH FLOW Paid tax -79 -35 Interest paid -37 -129 • Free cash flow improved to 306 MSEK (304), driven by higher turnover, Pre-opening costs & other items 36 -81 improved results and lower expansion Cash flow from op
Slide 12: Financing items
FINANCING ITEMS • Net debt of 2,821 MSEK1 DEBT • Net debt/adjusted EBITDA of 1.1x (0.5x excluding the convertible bond) • Total credit facility of 3,450 MSEK WORKING • Repayment of 700 MSEK in variable rent liabilities for 2022 CAPITAL CONVERTIBLE • Maturity in October 2024, conversion price = 43.36
Slide 13: Net financial items, reported vs. cash flow
NET FINANCIAL ITEMS, MSEK Q2 2023 Q2 2022 REPORTED VS. Total financial net, reported -503 -479 CASH FLOW of which interest expenses, IFRS 16 -432 -365 Financial net excl. IFRS 16 -72 -115 Adjustments to paid financial items • Reported financial net amounted Interest expenses, convertible bond (non-c
Slide 14: Concluding remarks
CONCLUDING REMARKS Scandic Park, Sweden 14
Slide 15: Outlook
OUTLOOK • Based on current bookings, we expect a strong third quarter driven by continued high demand and positive price development • For the third quarter, we anticipate occupancy levels in line with last year at higher room rates • Continued good momentum and efficiency Scandic Grand Central, Sto
Slide 16: Scandic Continental, Sweden
16 16 Scandic Continental, Sweden