Scandic Hotels Group Ab · OMXSTO:SHOT
Scandic Hotels Group Ab — Q3 2024 Earnings Presentation
21 slides from Scandic Hotels Group Ab's earnings presentation, Oct 30, 2024
Slide 1: Q3 Report, October 30, 2024
Q3 REPORT October 30, 2024
Slide 2: Q3 Report 2024 highlights
Q3 REPORT 2024 • Overall good quarter and solid market situation • Launch of key commercial initiatives • High portfolio activity and further expansion in Germany • New financial targets reflecting a strong position • Well positioned for distributing capital to shareholders • Stable booking situatio
Slide 3: Adjusted EBITDA of 1,077 MSEK, margin 17.4%
Q3 REPORT 2024 • Adjusted EBITDA of 1,077 (1,173) MSEK, with a ADJUSTED EBITDA PER QUARTER 2021-2024, MSEK margin of 17.4% (18.6) 1,400 1,200 • Excl. one-offs, adjusted EBITDA of 1,092 (1,142), 1,000 800 corresponding to a margin of 17.7% (18.1) 600 400 • Improved efficiency and good cost control 20
Slide 4: Market occupancy
Q3 REPORT 2024 MARKET OCCUPANCY SWEDEN NORWAY 72% 70% 70% 73% 72% 70% 72% 69% 75% 70% 65% 68% Jul-23 Aug-23 Sep-23 Jul-24 Aug-24 Sep-24 Jul-23 Aug-23 Sep-23 Jul-24 Aug-24 Sep-24 FINLAND DENMARK 64% 64% 64% 66% 66% 60% 83% 79% 76% 83% 79% 73% Jul-23 Aug-23 Sep-23 Jul-24 Aug-24 Sep-24 Jul-23 Aug-23 Se
Slide 5: Market average room rates
20 40 60 80 0 100 120 140 160 Jan 2020 Feb 2020 Q3 REPORT 2024 Mar 2020 Apr 2020 May 2020 Jun 2020 Source: Benchmarking Alliance. Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 MARKET AVERAGE ROOM RATES Sweden Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 INDEXED TO CORRESPONDING MONTH 2019 Ju
Slide 6: Market RevPAR
40 80 20 60 0 120 160 100 140 180 Jan 2020 Feb 2020 Q3 REPORT 2024 Mar 2020 Apr 2020 May 2020 Jun 2020 MARKET REVPAR Source: Benchmarking Alliance. Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 Sweden Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 INDEXED TO CORRESPONDING MONTH 2019 Jun 2021 J
Slide 7: Pipeline as of September 30, 2024
Q3 REPORT 2024 Pipeline as of September 30, 2024 No. of Year Hotel Destination rooms Q4 2024 Scandic Go, Sankt Eriksgatan 20 Stockholm, Sweden New 234 Q3 2025 The Dock 69°39 by Scandic Tromsø, Norway New 305 Q3 2025 Scandic Go, Oulu Oulu, Finland New 144 Q2 2026 Scandic, Ski Oslo, Norway New 220 Q4
Slide 8: Second Scandic Go hotel in Stockholm with 234 rooms
Q3 REPORT 2024 • Second Scandic Go hotel in Stockholm with 234 rooms • First Scandic hotel in the central district Kungsholmen (Stockholm) • Fully-renovated in collaboration with property owner Pandox • Nordic Swan Ecolabel certification Room at Scandic Go Scandic Go, Sankt Eriksgatan 20 facade 8
Slide 9: Expansion to Stuttgart with a new 174-room hotel
Q3 REPORT 2024 • Expansion to Stuttgart with a new 174-room hotel • Planned opening in Q4 2025 following a renovation in collaboration with AXA Investment Managers • Stuttgart's thriving business and tourism scene offer solid growth for both business and leisure guests • Nordic Swan Ecolabel certifi
Slide 10: Scandic Friends is the leading hospitality loyalty program in the Nordics
Q3 REPORT 2024 • Scandic Friends is the leading hospitality loyalty program in the Nordics • Completely rebuilt to strengthen commercial offering and enhance member interaction and increase bookings • Ambition to double the number of members until 2030 • The new seven-tier system provides tailored b
Slide 11: New strategic partnership with SAS
Q3 REPORT 2024 Q3 REPORT 2024 • New strategic partnership to create smoother, more personalized travel and hotel experiences • Two of the largest loyalty platforms in the Nordics with more than 11 million members • Strong incentives to choose both Scandic and SAS • Status matching and point conversi
Slide 12: Q3 Report 2024
Q3 REPORT 2024 12
Slide 13: Revenues in line with last year's record quarter
Q3 REPORT 2024 • Revenues in line with last year’s record quarter Net sales Adjusted Adjusted EBITDA EBITDA margin ‒ Organic growth of 0.5% (LFL 2.6%) Q3 Q3 Q3 Q3 Q3 Q3 MSEK 2024 2023 2024 2023 2024 2023 • Overall good result Sweden 1,873 1,862 406 405 21.7% 21.7% ‒ Excl. one-offs, adjusted EBITDA o
Slide 14: Operational cash flow of 1,856 MSEK LTM
Q3 REPORT 2024 • Operational cash flow of 1,856 MSEK LTM Free cash flow per quarter and LTM, MSEK Free cash flow Free cash flow LTM Free cash flow from operations LTM • Increased investments in line with plan 2,500 • Free cash flow of 659 MSEK in Q3 and 940 MSEK LTM 2,071 2,034 2,000 1,856 • Working
Slide 15: Net debt of 36 MSEK
Q3 REPORT 2024 • Net debt of 36 MSEK Net debt to adjusted EBITDA LTM • Net debt to adjusted EBITDA of 0.0x 0.9x 0.8x • Swedish debt related to deferred 0.7x VAT and social security contributions1 0.6x fully paid in advance • No remaining convertible bonds 0.0x Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024
Slide 16: Well positioned for solid growth with good profitability and balanced risk
Q3 REPORT 2024 Scandic is well positioned for solid growth with good profitability and a balanced risk profile GROWTH PROFITABILITY CAPITAL STRUCTURE DIVIDENDS 5% Organic net sales growth of 11% Adjusted EBITDA margin of <1x Net debt in relation to adjusted >50% The dividend policy is to distribute
Slide 17: Ambition to distribute at least 1,200 MSEK between 2024-2026
Q3 REPORT 2024 Ambition to distribute at least 1,200 MSEK between 2024-2026, in addition to ordinary dividend. Proposal for an extra dividend of 550 MSEK in December 2024 Proposal of extra dividend 550 MSEK Paid in December 2024, subject to approval by the EGM. Buyback program of 300 MSEK to be laun
Slide 18: Q3 Report 2024
Q3 REPORT 2024 18
Slide 19: We expect a stable market for the rest of the year
Q3 REPORT 2024 • We expect a stable market for the rest of the year • For the fourth quarter, we anticipate occupancy levels and room rates in line with last year • Focus on efficiency and cost control • Scandic in best shape ever and well-positioned for the future 19
Slide 20: Capital Markets Day, February 2025
Scandic Save. ha Nake CAPITAL FEBRUARY 19 MARKETS 7°25 DAY STOCKHOLM Q SCANDIC CONTINENTAL
Slide 21: Slide 21