Scandic Hotels Group Ab · OMXSTO:SHOT
Scandic Hotels Group Ab — Investor Presentation (June 2020)
32 slides from Scandic Hotels Group Ab's investor presentation, Jun 8, 2020
Slide 1: Scandic Hotels Investor Presentation, June 2020
SCANDICHOTELS / June, 2020
Slide 2: Disclaimer
DISCLAIMER Receipt of this document, including these slides, the talks given by the presenters, any written or oral material discussed or distributed during the meeting to present this document or otherwise in connection wit and answer session (together, the “Investor Presentation”)implies your agre
Slide 3: Disclaimer
DISCLAIMER The Investor Presentation has not been reviewed or approved by any regulatory authority or stock exchange. The Investor Presentation does not constitute an offer to sell or issue or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any
Slide 4: Executive Summary
EXECUTIVE SUMMARY Since its IPO in 2015 Scandic has strengthened its position as the leading, responsible hotel company in the Nordic region We have continued to execute on selected growth projects and successfully implemented efficiency measures across our platform to enhance profitability So far T
Slide 5: Scandic at a Glance
a \ SCANDIC AT A G
Slide 6: Scandic Today - The Market Leading Hotel Company in the Attractive Nordic Market
SCANDIC TODAY - THE MARKET LEADING HOTEL COMPANY IN THE ATTRACTIVE NORDIC MARKET SOLID DEMAND DYNAMICS UNTIL 2019 STRONG MARKET POSITION PROVEN BUSINESS MODEL SUSTAINABLE OFFERING STRONG CULTURE Demand has consistently outgrown supply in the Nordics, with a broad and well-balanced customer base #1 b
Slide 7: Nordic market demand and supply
Source: National Statistics, Benchmarking Alliance 7
Slide 8: Revenues CAGR 2015-2019
20 000 15 000 16% 10 000 Revenues CAGR 5 000 0 2015 2016 2017 2018 2019 2 500 2 000 1 500 1 000 500 0 2015 2016 2017 2018 2019 Source: National Statistics, Benchmarking Alliance 8
Slide 9: Scandic Has Established an Unrivalled Market Position in the Nordics
~“SCANDIC HAS ESTABLISHED AN UNRIVALLED MARKET POSIT! IN THE NORDICS... 130 DESTINATIONS 53,000 ROOMS 15% NORDIC MARKET SHARE L (254° 5 SCANDIC SIGNATURE
Slide 10: Maintenance capex
MSEK 900 4,5% 800 4,0% 700 3,5% 600 3,0% 500 2,5% 400 2,0% 300 1,5% 200 1,0% 100 0,5% 0 0,0% 2015 2016 2017 2018 2019 Maintenance capex Maintenance capex/Sales 10
Slide 11: From 2019 Peak Performance Scandic Has Executed Quickly in a Difficult 2020
FROM 2019 PEAK PERFORMANCE SCANDIC HAS EXECUTED QUICKLY IN A DIFFICULT 2020... Record year with revenue of 19 BSEK and adjusted 2019 EBITDA >2 BSEK 2020 Reduced non-rent costs by 70% from April, adjusted payment terms for rent and extended financing RevPAR recovery with high cash conversion given 20
Slide 12: Covid-19 update
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Slide 13: Substantial Cost Reductions & Secured Financing
3 SUBSTANTIAL COST REDUCTIONS & SECURED FINANCING Q1 NET SALES DOWN 18% AND ADJUSTED EBITDA OF -174 MSEK EXTENSIVE SET OF MEASURES TO ADJUST COST BASE AND PROTECT CASH FLOWS ONE-OFF IMPACTS: RESTRUCTURING COST OF 184 MSEK, WRITE DOWN OF INTANGIBLE ASSETS OF 2,955 MSEK AND NON CASH TAX COST OF 400 MS
Slide 14: Covid-19 impact on bookings and occupancy
Reduced international travel Measures taken by authorities Bookings began to fall in late and travel restrictions among to reduce the spread of Covid- LFL sales of -47% in March February corporate customers 19 (TOTAL MARKET OCCUPANCY) (TOTAL MARKET OCCUPANCY) (TOTAL MARKET OCCUPANCY) Source: Benchma
Slide 15: Employee measures
% (1) Mix of full-time and hourly-paid employees 15
Slide 16: Cash Flow Protection Measures
CASH FLOW PROTECTION MEASURES CANCELLATION OF 2019 DIVIDEND DISTRIBUTION CASH FLOWS PROJECTS FREEZE AND RESCHEDULED CAPEX AGREEMENT WITH LANDLORDS TO ADJUST PAYMENT TERMS DEFERRED RENTS EXPECTED TO PEAK IN Q3 2020 Scandic
Slide 17: 17,539 16,747 1,188 16,531 14,371 12,328 12,261 1,199 4,955 4,745 1,574 1,718 1,718 739
17,539 16,747 1,188 16,531 14,371 902 12,328 12,261 1,199 4,955 4,745 1,574 1,718 1,718 739 53,071 49,842 5,602 17
Slide 18: Room nights booked over past 7 days
No. of room nights booked over the past 7 days Source: Scandic 18
Slide 19: Number of hotels open
Number of hotels open 300 250 200 150 100 50 0 May 20 June 8 June 30 Total portfolio 19
Slide 20: Slide 20
Slide 21: Net sales Jan-Mar
Jan-Mar Jan-Mar 2020 2019 % Net sales 3,343 4,066 -17.8% March 2020 FX -16 -0.3% Sweden -44.3% Organic growth -707 -17.5% Norway -48.5% New hotels 55 1.3% Finland -45.0% Exited hotels -67 -1.7% Other Europe -55.4% Like-for like -694 -17.1% Total -47.2% 21
Slide 22: Adjusted EBITDA by segment Jan-Mar
Jan-Mar Adjusted EBITDA, MSEK Net sales Adjusted EBITDA % 2020 2019 2020 2019 2020 2019 Sweden 1,154 1,372 1 118 0.1% 8.6% Norway 888 1,152 -64 45 -7.2% 3.9% Finland 833 975 36 80 4.3% 8.2% Other Europe 468 567 -40 14 -8.5% 2.5% Central costs & group - - -107 -97 - - adjustments Group 3,343 4,066 -1
Slide 23: January-March excluding IFRS 16
January-March excluding IFRS 16 2020 2019 Total operating income 3,343 4,066 EBITDAR 857 1,263 Total rental charges -1,031 -1,103 Adjusted EBITDA -174 160 Pre-opening costs -26 -16 Items affecting comparability -184 169 EBITDA -384 313 Depreciation and amortization -3,166 -199 EBIT -3,550 114 Net fi
Slide 24: Cash flow and net debt Jan-Mar
January-March 2020 2019 Adjusted EBITDA -174 160 Change in working capital -24 -254 Paid tax, interest, pre-opening and other items -303 -234 Cash flow from operations -501 -328 Investments in existing operations -205 -132 Free cash flow before expansion capex -706 -460 Acquisitions/disposals - 230
Slide 25: Financing solution and Rights Issue
• 1,150 MSEK will be made available after the completion of the Rights Issue and fully repaid by the end of 2021 • The three largest shareholders Stena Sessan, AMF and Formica Capital have committed to subscribe for their pro rata portion, in aggregate 41.6% of the Rights Issue(2) • In addition, AMF
Slide 26: Slide 26
Slide 27: Scandic Has Executed Quickly in a Difficult 2020 to Reset for Recovery
SCANDIC HAS EXECUTED QUICKLY IN A DIFFICULT 2020 TO RESET FOR STRONG RECOVERY IN 2021-2022 Reduced non-rent costs by 70%, adjusted payment terms for rent and extended financing Expected gradual increase in occupancy of a few percentage points in June 2020 Gradual recovery in the second half of the y
Slide 28: -150 90% 100% 0% -550 76% 64% 36% -300 50% 85% 15% -1,000 %
-150 90% 100% 0% -550 76% 64% 36% -300 50% 85% 15% -1,000 70% 76% 24% -450 44% 86% 14% -1,450 62% 78% 22% 28
Slide 29: When the Holiday Season Starts
WHEN THE HOLIDAY SEASON STARTS 29
Slide 30: Strengths & Opportunities in a Post Covid-19 Environment
STRENGTHS & OPPORTUNITIES INA POST COVID-19 ENVIRONMENT Scandic
Slide 31: Our Strategy and Financial Targets Remain Unchanged
OUR STRATEGY AND FINANCIAL TARGETS REMAIN UNCHANGED Gi ? A WORLD CLASS \ NORDIC HOTEL COMPANY GREAT HOTEL EXPERIENCES FOR THE MANY PEOPLE ORGANIC MARGIN CAPITAL DIVIDENDS GROWTH STRUCTURE 5% 1% 2-3 x 250% BE CARING BE A PRO BE BOLD = = ENGAGED AND MOTIVATED TEAM MEMBERS SUSTAINABLE BUSINESS GROWING
Slide 32: Cost and action measures by area
• Adapt leases to current • Accelerate • Comply with current • Near-term focus on • Reduced it-development market conditions implementation of obligations domestic & intra-Nordic spend • Assess potential profitability measures • Review and postpone business • Focus on short term cost individual take
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