Slide 1: Interim presentation
Interim presentation 13 July, 2018 Anders Nissen, CEO Liia Nõu, CFO
Slide 2: Profitable growth
Profitable growth 1 Profitable acquisitions in new large markets 20% R12M 2 Continued strong development in Brussels Return on equity2 3 Good underlying demand in the hotel market 33% 29% -0.6% -0.3% 15% 17% Q2 H1 Q2 H1 Q2 H1 Growth in total LFL growth in NOI LFL growth in NOI net operating income1
Slide 3: Solid increase in total net operating income
Solid increase in total net operating income Based on a combination of factors + Strong performance in the UK and Ireland + Good development in Brussels + Seasonally strong quarter + Favourable market conditions Net +207m Q2 2018 Net +323m - Fewer business days in Europe (Germany) H1 2018 - Weaker t
Slide 4: Focus on profitable growth (R12M)
Focus on profitable growth (R12M) High business tempo reflected in earnings OUTCOME (R12M) 3 000 2,699 2 500 2 000 1,816 +1.8x 1,505 1 500 +2.0x 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 2015 2016 2017 2018 PANDOX – EXCELLENCE IN HOTEL O
Slide 5: Portfolio overview
Portfolio overview Well-diversified portfolio dominated by revenue-based leases Pandox Property Operator Group Management Activities 143 128 15 Hotel properties Leased properties Operated properties 31,656 29,946 4,710 Rooms Rooms Rooms 86% 14% Property market value Property market value SEK 53.1bn
Slide 6: The new world of Pandox
The new world of Pandox 2% ✓ 143 hotels ✓ 31,656 rooms 48% ✓ 15 countries 18% ✓ 83 destinations ✓ +20 brands 32% The circles illustrate market value by region as of 30 June 2018 (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 PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS
Slide 8: Good underlying demand (RevPAR)
Good underlying demand (RevPAR Q1 y/y) Europe (RevPAR) Selected countries (RevPAR) For the period April-May 2018 For the period April-May 2018 8% 8% 7% 7% 7% 6% 6% 6% 6% 5% 5% 4% 4% 4% 3% 2% 2% 0% 0% -2% -2% -1% -4% -4% -4% -4% -5% -6% -6% Q2 2017 Q2 2018 Q1 2018 Q3 2017 Q4 2017 Denmark Austria Norw
Slide 9: Stable positive growth in the Nordics (RevPAR)
Stable positive growth in the Nordics (RevPAR Q1 y/y) Key markets (RevPAR) Stockholm (RevPAR) For the period April-May 2018 15% 6% 13% 5% 4% 10% 8% 2% 5% 5% 5% 0% 2% 1% -2% 0% -3% -3% -1% -4% -4% -5% -6% -6% -8% -8% -8% -10% Q2 2018 Q2 2017 Q4 2017 Q3 2017 Q1 2018 Copenhagen Helsinki Berlin Montreal
Slide 10: Financial highlights
Financial highlights Solid earnings growth Key figures Comments on the quarter Q2 Q2 chg FY Property Management: LFL1 increase in (MSEK) 2018 2017 % 2017 revenue of 0.5 percent and decrease in Revenue net operating income of 0.6 percent Property Management (Note 1) 791 568 39 2,202 Net operating inc
Slide 11: Financial expense
Financial expense More loans in foreign currencies Financial expense Loan portfolio Interest rate swap portfolio Interest rate (Q2’17 vs Q2’18) (End Q2’17 vs end Q2’18) (End Q2’17 vs end Q2’18) (End Q2’17 vs end Q2’18) 27,523 GBP 18% 19,359 Other 15% Other 18,698 16% 17,134 SEK -198 SEK 26,858 28% 2
Slide 12: Good progress in the UK and Ireland
Good progress in the UK and Ireland Property Management Net operating income Rental income April-June 2018 in % Q1 Q1 FY (MSEK) 2018 2017 2017 Sweden 6% Rental income 739 547 2,121 UK 2% Germany 7% Other property income +30m 52 21 81 Finland 31% Costs* -127 -83 -321 Denmark 8% Norway Net operating i
Slide 13: Brussels drives earnings growth
Brussels drives earnings growth Operator Activities Net operating income Revenues April-June 2018 in % Q1 Q1 FY (MSEK) 2018 2017 2017 Belgium 6% 2% Revenue 565 555 2,067 Canada Costs -436 -462 -1,743 Germany 129 93 324 UK 22% Gross Profit Finland 46% Add: Depreciation included in costs 38 46 170 Net
Slide 14: Property portfolio
Property portfolio Marginally lower yields in the quarter Change in value (MSEK) Comments per 30 June, 2018 Total property portfolio market value amounted to MSEK 53,064 (50,121) Average valuation yield for Investment Properties was 5.55 (5.57) percent and for Operating Properties 7.27 (7.27) percen
Slide 15: Financing and capital structure
Financing and capital structure Solid 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 2018 to issue new shares up to a maximum of
Slide 16: The main drivers for growth in cash earnings
The main drivers for growth in cash earnings Opportunistic acquisitions Operations Portfolio investments Quality portfolio Market growth Organic growth PANDOX – EXCELLENCE IN HOTEL OWNERSHIP & OPERATIONS 16
Slide 17: Q&A
Q&A 17
Slide 18: Du vet - vill vi verkligen ” Go
Du vet - vill vi verkligen ” Go i onal” 3 vikti Expand ondemand - see Behe eh eustarp at id. the target ond become Ny fez. on the outlines” som Your enemy. vUKaV $298. Heavy staft assé.
Slide 19: Head office
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