Slide 1: Strong cash flow and reinstated dividend
Q4 2022 presentation Strong cash flow and reinstated dividend Liia Nõu, CEO Anneli Lindblom, CFO Anders Berg, Head of IR 9 February 2023
Slide 2: Continued earnings improvement
Quarter in brief Continued earnings improvement Demand trends intact ― Stable demand ― Restored seasonality Strong cash earnings growth ― Confirms the power of Pandox’s business model Solid financial position ― Loan-to-value of 46.7 percent ― Financing through banks only Dividend of SEK 2.50 per sha
Slide 3: A well-diversified portfolio
Strategic position A well-diversified portfolio Pandox Property Operator Group Management Activities 157* 137 20 Hotel properties Leased properties Operated properties 35,490 29,717 5,773 Rooms Rooms Rooms SEK 69.2bn 83% 17% Property market value Property market value Property market value *156 afte
Slide 4: A strong network of partners and brands
Strategic position A strong network of partners and brands Pandox cooperates with more than 30 business partners and brands Interim report Q4 2022 9 February 2023 4
Slide 5: Strong underlying growth
Quarter in brief Strong underlying growth +18% +44% +22% 46.7% Return on equity 1) LFL growth in NOI LFL growth in NOI Loan-to-value, net total 2) Property management 3) R12M Oct-Dec 2022 Oct-Dec 2022 Per 31 December 2022 1) Measured as growth in EPRA NRV, including dividend and excluding proceeds f
Slide 6: RevPAR has fully recovered (seasonality is back)
Pandox Property Management RevPAR RevPAR has fully recovered (seasonality is back) SEK 1200 1000 898 933 898 853 839 794 787 800 608 600 517 566 376 400 240 200 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 2021 2022 Interim report Q4 2022 9 February 2023 6
Slide 7: RevPAR per segment indexed vs. 2019
Pandox total portfolio RevPAR per segment indexed vs. 2019 Interim report Q4 2022 9 February 2023 7
Slide 8: Occupancy by segment indexed vs. 2019
Pandox total portfolio Occupancy by segment indexed vs. 2019 Interim report Q4 2022 9 February 2023 8
Slide 9: Value-creating investment (and rebranding)
Recent example Value-creating investment (and rebranding) Leonardo Royal Hotel Birmingham Interim report Q4 2022 9 February 2023 9
Slide 10: Strong cash earnings growth
Financial summary Strong cash earnings growth Continued earnings improvement Revenue and result (MSEK) 22Q4 21Q4 YoY LFL1) Pandox Group revenue 1,623 974 67% 54% Normal seasonality Pandox Group NOI 882 568 55% 44% Cash earnings of MSEK 515 (196) Property Management revenue 848 648 31% 25% The board
Slide 11: Growing number of leases in variable territory
Property Management Growing number of leases in variable territory Variable revenue in Property Management Number of leases with minimum contractual MSEK No. rent generating variable revenue 96 400 378 96 81 percent of ”minimum leases” 350 84 above minimum level in Q4’22 78 73 300 286 72 258 250 60
Slide 12: Stable values q/q despite higher yields
Property portfolio Stable values q/q despite higher yields Pandox performs internal valuation of its hotel properties each quarter and Investment Properties are recognised at fair value. The value of Operating Properties is reported for information purposes only and is included in EPRA NRV calculati
Slide 13: Recovery in property values after Covid-19
Property portfolio Recovery in property values after Covid-19 0% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 -1% -2% -2% -2% -2% -3% -3% -3% -3% -4% Accumulated changes in value measured from -4% -4% start of pandemic -5% -5% -5% -5% -5% -6% Interi
Slide 14: Strong cash flow supports property values
Property portfolio Strong cash flow supports property values Full-year 2022 22Q1 22Q2 22Q3 22Q4 Unrealised changes in value, MSEK 409 639 536 -68 ― Yield (+0.17%) SEK -1.3bn Yield 5.57% 5.58% 5.63% 5.74% ― Cash flow SEK +2.8bn Externally valued 1), per quarter 19% 14% 13% 50% Q4 2022 Externally valu
Slide 15: Well-proven financing strategy
Financial summary Well-proven financing strategy Well-proven financing strategy built on long-term Capital structure, per 31 December 2022 relationships with banks and shareholders Equity and mortgage-backed bank loans are Pandox’s sources of financing Net debt, MSEK 32,334 No market financing in th
Slide 16: Refinancings in progress
Financial summary Refinancings in progress MSEK 16,213 of debt maturing within one year, FY FY Key metrics (at end of period) YoY of which approximately 50 percent during H1’23 2022 2021 Net interest-bearing debt, MSEK 32,119 31,159 6% Proactive and positive dialogue with banks on EPRA NRV, MSEK 37,
Slide 17: Commitment to Science Based Targets
Sustainability Commitment to Science Based Targets 30 November 2022 – Commitment letter to Science Based Targets initiative (SBTi) 1 December 2022 – Targets shared with SBTi 12 June 2023 – Target validation by the SBTi Targets produced in cooperation with Swedish Environmental Institute (IVL) Target
Slide 18: Fast and strong recovery
Hotel market development Fast and strong recovery RevPAR now largely back to pre-pandemic levels In general, ADR is above and OCC is slightly below 2019 levels Continued strong domestic and regional demand Business and international travel have improved Long distance travel still below 2019 levels I
Slide 19: Nordic regional
Hotel market development Nordic regional SEK 1200 140% 128% 130% 123% 1000 118% 117% 117% 117% 115% 116% 116% 120% 114% 114% 110% 106% 107% 110% 800 102% 104% 102% 100% 102% 101% 99% 99% 99% 98% 100% 600 84% 90% 80% 400 65% 70% 60% 200 50% 0 40% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD De
Slide 20: Nordic capitals
Hotel market development Nordic capitals SEK 1200 140% 130% 1000 118% 120% 113% 110% 108% 109% 108% 107% 105% 107% 110% 800 99% 96% 100% 94% 93% 93% 93% 92% 93% 90% 90% 91% 91% 88% 600 85% 90% 77% 80% 400 70% 60% 60% 200 50% 43% 0 40% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Dec Occ index
Slide 21: Germany
Hotel market development Germany EUR 120 140% 100 117% 120% 113% 114% 112% 110% 109% 103% 105% 101% 80 94% 92% 93% 92% 100% 90% 90% 90% 84% 85% 84% 81% 81% 81% 81% 60 80% 63% 40 60% 50% 43% 20 40% 0 20% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Dec Occ index vs. 2019 ADR index vs. 2019 201
Slide 22: Frankfurt
Hotel market development Frankfurt EUR 120 140% 125% 121% 120% 100 112% 120% 108% 103% 101% 96% 98% 80 92% 92% 100% 90% 89% 89% 87% 85% 86% 85% 60 76% 80% 70% 71% 70% 68% 40 53% 60% 42% 20 37% 40% 0 20% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Dec Occ index vs. 2019 ADR index vs. 2019 201
Slide 23: UK regional
Hotel market development UK regional GBP 90 140% 80 123% 130% 122% 120% 122% 122% 117% 118% 118% 70 116% 115% 120% 112% 112% 110% 60 101% 103% 100% 99% 99% 98% 99% 100% 97% 97% 97% 97% 100% 94% 50 90% 40 81% 80% 30 70% 20 60% 10 50% 0 40% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Dec Occ i
Slide 24: London
Hotel market development London GBP 300 140% 131% 126% 125% 130% 120% 123% 250 118% 119% 118% 116% 120% 113% 106% 110% 200 98% 96% 95% 94% 94% 95% 95% 100% 92% 87% 89% 89% 88% 150 85% 90% 75% 80% 100 70% 54% 60% 50 50% 0 40% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Dec Occ index vs. 2019
Slide 25: Cautiously optimistic on 2023
Market outlook Cautiously optimistic on 2023 Profitable business model, strong cash flow and solid financial position Variable revenues offer protection against both inflation and higher interest rates Energy and financial cost will increase in 2023 Additional demand potential from business and inte
Slide 26: Q&A
Q&A Interim report Q4 2022 9 February 2023 26
Slide 27: Pandox AB (publ) contact and forward-looking statements
Pandox AB (publ) Box 15 Tel: +46 8 506 205 50 Forward-looking statements. This presentation contains forward-looking statements. Such statements are subject SE-101 20 Stockholm www.pandox.se to risks and uncertainties as various factors, many of which are beyond the control of Pandox AB (publ), may