Scandic Hotels Group Ab · OMXSTO:SHOT
Scandic Hotels Group Ab — Q2 2024 Earnings Presentation
17 slides from Scandic Hotels Group Ab's earnings presentation, Jul 17, 2024
Slide 1: Scandic Q2 Report 2024 - Your friend in town
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Slide 2: Q2 Report 2024 highlights
Q2 REPORT 2024 • Solid market with good demand and increasing prices • Improved efficiency and strong results • High portfolio activity • New long-term sustainability-linked financing secured • Positive booking situation for the third quarter 2
Slide 3: Adjusted EBITDA per quarter 2021-2024
Q2 REPORT 2024 ADJUSTED EBITDA PER QUARTER 2021-2024, MSEK 1,400 • Adjusted EBITDA of 841 (772) MSEK, 1,200 1,000 corresponding to a margin of 14.3% (13.6) 800 600 • Good demand in combination with 400 improved efficiency and cost control 200 0 -200 -400 -600 -800 Q1 Q2 Q3 Q4 2021 2022 2023 2024 3
Slide 4: Market occupancy
Q2 REPORT 2024 MARKET OCCUPANCY SWEDEN NORWAY 68% 67% 68% 65% 73% 75% 58% 58% 59% 57% 57% 48% Apr-23 May-23 Jun-23 Apr-24 May-24 Jun-24 Apr-23 May-23 Jun-23 Apr-24 May-24 Jun-24 FINLAND DENMARK 61% 65% 78% 75% 79% 59% 56% 66% 71% 67% 48% 53% Apr-23 May-23 Jun-23 Apr-24 May-24 Jun-24 Apr-23 May-23 Ju
Slide 5: Market average room rates
20 40 60 80 0 100 120 140 Jan 2020 Feb 2020 Q2 REPORT 2024 Mar 2020 Apr 2020 May 2020 Source: Benchmarking Alliance. Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 MARKET AVERAGE ROOM RATES Dec 2020 Sweden Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 INDEXED TO CORRESPONDING MONTH 2019 Jun 20
Slide 6: Market RevPAR
20 40 60 80 0 100 120 140 180 160 Jan 2020 Feb 2020 Q2 REPORT 2024 Mar 2020 Apr 2020 May 2020 MARKET REVPAR Source: Benchmarking Alliance. Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 Sweden Jan 2021 Feb 2021 Mar 2021 Apr 2021 INDEXED TO CORRESPONDING MONTH 2019 May 2021 Jun 2021 J
Slide 7: Pipeline as of June 30, 2024
Q2 REPORT 2024 Pipeline as of June 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 2026
Slide 8: Lilla Bommen, Gothenburg and Scandic Go
Q2 REPORT 2024 Lilla Bommen, Gothenburg Scandic Go, facade Scandic Go, double room 8
Slide 9: Q2 Report 2024
Q2 REPORT 2024 9
Slide 10: Net sales and adjusted EBITDA by country
Q2 REPORT 2024 Adjusted Adjusted Net sales EBITDA EBITDA margin Q2 Q2 Q2 Q2 Q2 • Net sales rose 3% to 5,871 MSEK (5,693) MSEK 2024 2023 2024 2023 2024 Q2 2023 Sweden 1,755 1,751 288 270 16.4% 15.4% • Adjusted EBITDA increased to 841 MSEK (772), with a margin of 14.3% (13.6) Norway 1,636 1,548 288 28
Slide 11: Free cash flow per quarter and LTM
Q2 REPORT 2024 Free cash flow per quarter and LTM, MSEK Free cash flow Free cash flow LTM • Free cash flow of 463 MSEK (664) in Q2 3,500 3,000 • Working capital in Q2 affected by 210 MSEK in 2,500 2,205 2,149 variable rent repayments for 2023 2,000 1,754 1,500 1,378 • Increased investments in mainte
Slide 12: Net debt to adjusted EBITDA LTM
Q2 REPORT 2024 Net debt to adjusted EBITDA LTM • Net debt of 1,658 MSEK1 Financial target of 2-3x • Net debt/adjusted EBITDA of 0.7x (0.3 excluding the convertible bond) 1.1x 0.9x 0.8x 0.7x 0.6x Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 1) Includes the convertible bond of 962 MSEK and 675 MSEK in othe
Slide 13: Long-term financing secured
Q2 REPORT 2024 • Robust and flexible long-term financing secured • Improved terms – reflecting our strategic agenda and strong financial position • Facility of 3,250 MSEK, possibility to increase to 3,750 MSEK • Tenor of 3 years with the possibility to extend for 2 years • Full flexibility to handle
Slide 14: Convertible bond
Q2 REPORT 2024 • Maturity on October 8, 2024 • Conversion price of 43.36 SEK • Buy-back for 590.2 MSEK in November 2023 • Total pre-conversions of 532.1 MSEK1 • Outstanding convertible loan of 677.7 MSEK1 1) As of reporting date July 17, 2024 14
Slide 15: Q2 Report 2024
Q2 REPORT 2024 15
Slide 16: Outlook for the third quarter
Q2 REPORT 2024 16 • We expect a continued solid market situation • For the third quarter, we anticipate occupancy levels in line with last year at somewhat higher room rates • High pace to grow the portfolio and to deliver on our commercial agenda • Continued focus on cost control and efficiency 16
Slide 17: Slide 17