Slide 1: Interim presentation
Interim presentation 26 April, 2019 Anders Nissen, CEO Liia Nõu, CFO
Slide 2: Sustained profitable growth
Sustained profitable growth 1 Add-on acquisitions 15% R12M 2 A strong Brussels market Return on equity2 3 Positive calendar effects 14% 11% 1.3% 17.1% IFRS 16 Ex IFRS 16 Growth in total LFL growth in NOI LFL growth in NOI net operating income1 Property Management3 Operator Activities3 1) Measured as
Slide 3: Stable increase in total net operating income
Stable increase in total net operating income Based on a combination of factors + Acquisitions + Strong growth in Brussels and Berlin + Positive calendar effects Net +84m Q1 2019 - Increased hotel supply Net +65m - Negative renovation effects Ex IFRS 16 PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERA
Slide 4: Focus on profitable growth (R12M)
Focus on profitable growth (R12M) Continously high business tempo reflected in earnings OUTCOME (R12M) 3 500 3,141 3 000 2 500 2 000 +2.1x 1,915 1,505 1 500 +2.1x 1 000 894 500 Total net operating income Total cash earnings 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2016 2017 2018 201
Slide 5: Portfolio overview
Portfolio overview Well-diversified portfolio dominated by revenue-based leases Pandox Property Operator Group Management Activities 144 128 16 Hotel properties Leased properties Operated properties 32,273 27,314 4,959 Rooms Rooms Rooms 85% 15% Property market value Property market value SEK 56.7bn
Slide 6: The world of Pandox
The world of Pandox 2% ✓ 144 hotels ✓ 32,273 rooms 45% ✓ 15 countries 21% ✓ 82 destinations ✓ +20 brands 32% The circles illustrate market value by region as of 31 March 2019 (rounded percentages) PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 6
Slide 7: A broad selection of operators and brands
A broad selection of operators and brands All brands and logos are the property of their respective owner PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS
Slide 8: Timing of Easter supported growth (RevPAR Q1 y/y)
Timing of Easter supported growth (RevPAR Q1 y/y) Europe (RevPAR) Selected countries (RevPAR) 8% 10% 9% 7% 9% 7% 8% 6% 7% 5% 5% 6% 5% 6% 4% 5% 4% 4% 3% 3% 3% 2% 2% 2% 1% 1% 1% 1% 1% 0% 0% 0% 0% UK Austria Denmark Sweden Norway Ireland Finland Germany Q2 2018 Q1 2018 Q1 2019 Q3 2018 Q4 2018 Source: S
Slide 9: Uneven development in key markets (RevPAR Q1 y/y)
Uneven development in key markets (RevPAR Q1 y/y) Key markets (RevPAR) Stockholm (RevPAR) 12% 6% 10% 5% 10% 9% 5% 4% 4% 4% 8% 3% 3% 6% 4% 2% 4% 3% 1% 2% 1% 0% 0% 0% 0% -1% -2% -2% -4% -3% -3% -3% -6% -5% -4% Copenhagen Berlin Frankfurt Montreal Helsinki Oslo Stockholm Brussels UK Regional Q2 2018 Q1
Slide 10: Financial highlights
Financial highlights Stable and positive earnings growth Key figures Comments on the quarter Q1 Q1 chg FY Property Management: LFL1 increase in (MSEK) 2019 2018 % 2018 revenue and net operating income of Revenue 1.3 percent respectively 685 621 10 2,971 Property Management (Note 1) Net operating inc
Slide 11: Financial expense
Financial expense Reflects several factors Financial expense Loan portfolio Interest rate swap portfolio Interest rate (Q1’19 vs Q4’18) (End Q1’19 vs end Q4’18) (End Q1’19 vs end Q4’18) (End Q1’19 vs end Q4’18) IFRS 16: Financial cost use-of-right assets MSEK -19 28,436 28,095 Other Other 15% 15% GB
Slide 12: On balance, stable growth
On balance, stable growth Property Management Net operating income Rental income Jan – Mar 2019 in % Q1 Q1 FY (MSEK) Sweden 2019 2018 2018 6% UK 2% Rental income 641 600 2,809 Germany 7% Other property income 44 21 162 Finland 29% Denmark 7% Costs* -102 -93 -454 Norway Net operating income Ex IFRS 1
Slide 13: Good growth and conversion
Good growth and conversion Operator Activities Net operating income Revenues Jan – Mar 2019 in % Q1 Q1 FY (MSEK) 2019 2018 2018 Belgium 2% Revenue 506 431 2,153 12% Canada Costs -458 -404 -1,776 Germany Gross Profit 48 27 377 UK 14% 47 39 163 Finland 49% Add: Depreciation included in costs Net opera
Slide 14: Property portfolio
Property portfolio A quiet quarter Change in value (MSEK) Comments per 31 March, 2019 Total property portfolio market value amounted to MSEK 56,713 (55,197) Average valuation yield for Investment Properties was 5.51 (5.51) percent and for Operating Properties 6.71 (6.74) percent +0.3% Only around 7
Slide 15: Financing and capital structure
Financing and capital structure Sustained growth in EPRA NAV and maintained financial flexibility Liquid funds and long-term unutilised EPRA Net Asset Value (MSEK) Loan to value (%) credit facilities (MSEK) EPRA NAV per share, SEK Renewed mandate from the AGM 2019 to issue new 28,561 shares up to a
Slide 16: The main drivers for growth
The main drivers for growth Opportunistic acquisitions Operations Growth investments Diversified portfolio Market growth PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 16
Slide 17: Q&A
Hotel Hubert Brussels Q&A 17
Slide 18: Head office and contact details
Head office Pandox AB (publ) Box 15 SE-101 20 Stockholm Sweden Visiting address Vasagatan 11 Stockholm Sweden Tel: +46 8 506 205 www.pandox.se Org.nr. 556030-7885 Forward-looking statements. This presentation contains forward- looking statements. Such statements are subject to risks and uncertaintie