Pandox Ab Class B · OMXSTO:PNDX_B
Pandox Ab Class B — Q3 2020 Earnings Presentation
26 slides from Pandox Ab Class B's earnings presentation, Oct 23, 2020
Slide 1: Two steps forward, one step back
Two steps forward one step back Anders Nissen, CEO Liia Nõu, CFO Q3 2020 23 ▪ 10 ▪ 2020 presentation PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS Exterior @Hilton Garden Inn London Heathrow
Slide 2: A well-diversified portfolio
Strategic position A well-diversified portfolio Pandox Group Property Management Operator Activities 156 35,059 136 29,272 20 5,787 Hotel properties Rooms Leased properties Rooms Operated properties Rooms SEK 62.0bn 84% 16% Property market value Property market value Property market value PANDOX – E
Slide 3: A strong network of brands and partners
Strategic position A strong network of brands and partners Note: The logos are the property of the respective brand owners. PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS 3
Slide 4: Recovery in line with expectations
Q3 2020 in brief Recovery in line with expectations Strong summer period driven by domestic leisure demand Initial demand from domestic business Continued strong financial and liquidity position Government restrictions biggest threat -5% R12M -47% Jul-Sep 2020 -37% Jul-Sep 2020 MSEK 5,348 30 Sep 202
Slide 5: COVID-19 effects on Pandox
Q3 2020 in brief COVID-19 effects on Pandox Low demand due to COVID-19 related restrictions Minimum and fixed rent main source of income, also expected in Q4 Strong increase in domestic leisure demand when restrictions lifted Unrealised value changes explained by lower cash flows 2020, 2021 and 2022
Slide 6: Diversified revenue base
Current revenue Diversified revenue base Revenues from different operational models and geographies Minimum rent and fixed rent main source of revenue Approximately MSEK 500 per quarter Revenue-based rents of MSEK 69 in Q3 Revenues from Operator Activities of MSEK 169 in Q3 Rent collection progressi
Slide 7: Valuations based on established method
Property portfolio Valuations based on established method Value change Comments per 30 September, 2020 Total property portfolio market value amounted to MSEK 62,022 (63,469) Average valuation yield for Investment Properties was 5.42 (5.41) percent and for Operating Properties 6.38 (6.41) percent -2.
Slide 8: Financing and capital structure
Financial position Financing and capital structure 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 2020 to issue new shares up to a maximum of 10 percent of total outstanding shares 34,2
Slide 9: Three focus areas
Pandox and COVID-19 Three focus areas Respond – manage the acute phase of the crisis Restart – plan for the recovery Reinvent – what’s next? PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS 9
Slide 10: Third update since start of pandemic
Market outlook 3.0 Third update since start of pandemic Six development levels Several development phases PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS 10
Slide 11: …to get back to full performance
Six development levels… …to get back to full performance Revenue 6 Groups return 5 International and meeting returns 4 Domestic business 3 returns Domestic leisure returns 2 Hotels open up for business 1 Cities and countries open up Restrictions easing gradually Time PANDOX – EXCELLENCE IN HOTEL OWN
Slide 12: The past
Phase 1 The past COVID-19 virus arrived to Northern Europe in March Societies closed down and travel restrictions were implemented Occupancy 5–25 percent Market bottom in late April/early May PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS 12
Slide 13: Summer holidays
Phase 2 Summer holidays Late May, restrictions were gradually eased and domestic travel allowed Domestic leisure demand returned quite immediately In the Nordics occupancy rose rapidly from 20 to 60 percent during the summer period (R7 days) Similar pattern in domestic markets across Europe Drivers
Slide 14: After summer holidays
Phase 3 After summer holidays After the summer holidays the leisure segment decreased during weekdays but remained stable over weekends Domestic corporate returned gradually as small and medium sized companies began to travel. Low demand from larger companies due to result of travel restrictions Dom
Slide 15: Occupancy January–September 2020: Germany
Germany Occupancy January–September 2020 Germany (open hotels) 100% 90% 80% 70% 64% 58% 60% 50% 43% 44% 40% 38% 30% 24% 24% 20% 12% 8% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Germany Occ Germany Occ LY Source: STR PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS 15
Slide 16: Occupancy January–September 2020: Regional UK
Regional UK Occupancy January–September 2020 Regional UK (open hotels) 100% 90% 80% 71% 70% 61% 60% 53% 53% 50% 38% 40% 30% 30% 24% 21% 23% 20% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Regional UK Occ Regional UK Occ LY Source: STR PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS 16
Slide 17: Occupancy January–September 2020: Nordic regional
Nordic regional Occupancy January–September 2020 Regional Nordic (open hotels) 100% 90% 80% 72% 70% 60% 57% 52% 53% 50% 47% 41% 40% 33% 30% 27% 19% 20% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Regional Nordic Occ Regional Nordic Occ LY Source: Benchmarking Alliance and aggregated by Pandox PANDOX
Slide 18: Strong comeback for domestic travel
Current market trends Strong comeback for domestic travel The largest segment in the hotel market – domestic travel – has made a comeback. Slower recovery for international travel First signs of smaller meetings Resort and midscale/economy hotels in domestic markets with ”drive/train-to-distance” ar
Slide 19: Occupancy effect from new restrictions: Regional UK
Regional UK Occupancy effect from new restrictions Regional UK (open hotels) 100% 90% 80% 70% 60% 56% 53% 50% 46% 45% 44% 40% 30% 20% 10% 0% 19-09-2020 26-09-2020 03-10-2020 10-10-2020 17-10-2021 Regional UK Occ Regional UK Occ LY Source: STR PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS 19
Slide 20: Occupancy effect from new restrictions: Germany
Germany Occupancy effect from new restrictions Germany (open hotels) 100% 90% 80% 70% 60% 50% 44% 42% 39% 40% 40% 33% 30% 20% 10% 0% 19-09-2020 26-09-2020 03-10-2020 10-10-2020 17-10-2021 Germany Occ Germany Occ LY Source: Fairmas PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS 20
Slide 21: Occupancy effect from new restrictions: Nordic regional
Nordic regional Occupancy effect from new restrictions Regional Nordic (open hotels) 100% 90% 80% 70% 60% 48% 47% 49% 50% 47% 46% 40% 30% 20% 10% 0% 19-09-2020 26-09-2020 03-10-2020 10-10-2020 17-10-2021 Regional Nordic Occ Regional Nordic Occ LY Source: Benchmarking Alliance and aggregated by Pando
Slide 22: Year-end 2020
Phase 4 Year-end 2020 Our assessment is that new restrictions will have mixed impact in Q4 2020 Marginal impact in Sweden, Norway and Finland Negative impact trend in Germany Larger negative impact in the UK, Belgium, the Netherlands and Denmark PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 23: Stable development
Outlook for Q4 vs Q3 Stable development We expect stable revenues in Property Management We expect Operator Activities to be slightly weaker (Brussels and the Hague) New restrictions are pushing the recovery a bit further out, but the effects are limited for Pandox: 1. Portfolio dominated by domesti
Slide 24: …to get back to full performance
Six development levels… …to get back to full performance Revenue 6 Group returns 5 International and meeting returns 4 Domestic business 3 returns Domestic leisure returns 2 Hotels open up for business 1 Cities and countries open up Restrictions easing gradually Time PANDOX – EXCELLENCE IN HOTEL OWN
Slide 25: Q&A
Hotel Mayfair, Copenhagen 25 Q&A 25
Slide 26: Hotel Twentyseven, Copenhagen
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