Pandox Ab Class B · OMXSTO:PNDX_B
Pandox Ab Class B — Q4 2020 Earnings Presentation
28 slides from Pandox Ab Class B's earnings presentation, Feb 11, 2021
Slide 1: A time for forward thinking
A time for forward thinking Anders Nissen, CEO Liia Nõu, CFO Q4 2020 11 ▪ 02 ▪ 2021 presentation PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS New interior @Midland Manchester
Slide 2: A well-diversified portfolio
Strategic position A well-diversified portfolio Pandox Group Property Management Operator Activities 156 35,060 136 29,273 20 5,787 Hotel properties Rooms Leased properties Rooms Operated properties Rooms SEK 59.5bn 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: New restrictions, lower demand
Q4 2020 in brief New restrictions, lower demand Promising start in the quarter… …but new restrictions led to gradually lower demand Profitable and cash flow positive Continued strong financial and liquidity position -10% R12M -53% Oct-Dec 2020 -26% Oct-Dec 2020 MSEK 5,221 31 Dec 2020 Return on equit
Slide 5: COVID-19 effects on Pandox
Q4 2020 in brief COVID-19 effects on Pandox Reduced demand due to renewed COVID-19 related restrictions Minimum and fixed rent main source of income (also expected in Q1) Unrealised value changes explained by lower anticipated cash flows Increase in trade account receivables reflecting new and tempo
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 48 in Q4 and MSEK 249 in FY 2020 Rent collection progressing in line with temporar
Slide 7: Valuations based on established method
Property portfolio Valuations based on established method Value change Comments per 31 December, 2020 Valuations made according to same method and model used since the IPO 2015 Downward adjustments due to lower anticipated cash flows, mainly as a result of COVID-19 -3.3% Conclusive transaction evide
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: Gaining new insights into the recovery
Market update Gaining new insights into the recovery Recap: Hotel market development 2020 Show: Demand segments in Pandox’s portfolio Explore: Hotel markets outside Europe and their drivers of recovery New insights: Into the recovery 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: COVID-19 strikes and everything stops
Hotel market development 2020 COVID-19 strikes and everything stops COVID-19 arrives to Northern Europe in March 2020 Societies closed down and travel restrictions were implemented The hotel market bottoms out in April When restrictions were lifted in June/July the recovery starts PANDOX – EXCELLENC
Slide 13: Summer holiday recovery
Hotel market development 2020 Summer holiday recovery During the summer demand increases quite rapidly in Europe Domestic leisure is the main driver After the vacation period leisure demand remains stable on weekends Domestic businesses begin to travel with first signs of smaller meetings PANDOX – E
Slide 14: Early autumn plateau
Hotel market development 2020 Early autumn plateau In September occupancy is 45-55 percent in most of Pandox’s domestic markets Up to this point, the recovery is faster than many had expected However, demand in larger and more international cities remain weak PANDOX – EXCELLENCE IN HOTEL OWNERSHIP A
Slide 15: Second wave brings new restrictions
Hotel market development 2020 Second wave brings new restrictions In October new restrictions are implemented due to “second wave” infections It becomes more difficult to operate hotels again Demand decreases substantially across all segments PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS 15
Slide 16: Germany: Occupancy 2020
Hotel market development 2020 Germany: Occupancy 2020 100% 90% 80% 70% 64% 58% 60% 50% 44% 43% 40% 38% 34% 30% 24% 24% 20% 15% 12% 12% 8% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Germany Occ Germany Occ LY Source: STR (reporting basis) PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATI
Slide 17: Regional UK: Occupancy 2020
Hotel market development 2020 Regional UK: Occupancy 2020 100% 90% 80% 71% 70% 61% 60% 53% 53% 50% 44% 40% 38% 30% 30% 30% 27% 23% 24% 21% 20% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Regional UK Occ Regional UK Occ LY Source: STR (reporting basis) PANDOX – EXCELLENCE IN HOTEL OWNERSHI
Slide 18: Nordic regional: Occupancy 2020
Hotel market development 2020 Nordic regional: Occupancy 2020 100% 90% 80% 72% 70% 60% 57% 52% 53% 50% 47% 47% 41% 40% 33% 32% 30% 27% 28% 19% 20% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Nordic Regional Occ Nordic Regional Occ LY Source: Benchmarking Alliance PANDOX – EXCELLENCE IN HO
Slide 19: Occupancy performance 2020
Demand segments in Pandox’s portfolio Occupancy performance 2020 20% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -20% -40% -60% -80% -100% Interstate Resort Airport Suburban Regional City Small City Large City Total Source: Pandox PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS 19
Slide 20: Looking at markets ahead of Europe
Hotel markets outside Europe and their drivers of recovery Looking at markets ahead of Europe China New Zealand Australia India PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS 20
Slide 21: Why are they relevant?
Hotel markets outside Europe and their drivers of recovery Why are they relevant? Well ahead of Europe in their recovery Well-developed with many different segments Mix of domestic and international brands Considerable inbound and outbound travel PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 22: China: Occupancy 2020
Hotel markets outside Europe and their drivers of recovery China: Occupancy 2020 100% 90% 80% 70% 64% 65% 62% 62% 57% 58% 60% 50% 47% 47% 44% 40% 35% 30% 23% 20% 14% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec China Occ China Occ LY Source: STR (reporting basis) PANDOX – EXCELLENCE IN HOT
Slide 23: New Zealand: Occupancy 2020
Hotel markets outside Europe and their drivers of recovery New Zealand: Occupancy 2020 100% 90% 84% 80% 78% 70% 59% 58% 60% 56% 53% 54% 53% 50% 46% 42% 40% 30% 26% 22% 20% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec New Zealand Occ New Zealand Occ LY Source: STR (reporting basis) PANDOX –
Slide 24: Australia: Occupancy 2020
Hotel markets outside Europe and their drivers of recovery Australia: Occupancy 2020 100% 90% 80% 71% 72% 70% 60% 53% 50% 46% 46% 47% 41% 43% 39% 40% 32% 30% 23% 20% 20% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Australia Occ Australia Occ LY Source: STR (reporting basis) PANDOX – EXCEL
Slide 25: India: Occupancy 2020
Hotel markets outside Europe and their drivers of recovery India: Occupancy 2020 100% 90% 80% 74% 70% 70% 60% 50% 47% 40% 36% 31% 31% 30% 25% 23% 23% 21% 20% 14% 12% 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec India Occ India Occ LY Source: STR (reporting basis) PANDOX – EXCELLENCE IN HOT
Slide 26: It all depends on the restrictions
Outlook It all depends on the restrictions Q1: demand will be low due to ongoing restrictions Q2: given successful vaccinations and reduced restrictions… …demand will return in stages with individual leisure returning first …followed by domestic business travel by small and mid-sized companies …stro
Slide 27: Q&A
Clarion Collection Arcticus, Harstad 27 Q&A 27
Slide 28: 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