Scandic Hotels Group AB · OMXSTO:SHOT
Scandic Hotels Group AB — Q1 2021 Earnings Presentation
20 slides from Scandic Hotels Group AB's earnings presentation, April 2021
Slide 1: Financial Update
SCANDIC HOTELS
Slide 2: Prepared for recovery
PREPARED FOR RECOVERY EXPECTED RECOVERY BEFORE SUMMER MEASURES IN PLACE TO CAPTURE DEMAND EXTENDED LIQUIDITY HEADROOM Scandic
Slide 3: Total market occupancy
(TOTAL MARKET OCCUPANCY) (TOTAL MARKET OCCUPANCY) (TOTAL MARKET OCCUPANCY) (TOTAL MARKET OCCUPANCY) Source: Benchmarking Alliance 3
Slide 4: Y-o-Y change in market RevPAR
(Y-O-Y CHANGE IN MARKET REVPAR) (Y-O-Y CHANGE IN MARKET REVPAR) (Y-O-Y CHANGE IN MARKET REVPAR) (Y-O-Y CHANGE IN MARKET REVPAR) Source: Benchmarking Alliance 4
Slide 5: Occupancy by country, April 2021
5 10% 20% 25% 15% 0% 5% 01-04-21 02-04-21 03-04-21 04-04-21 05-04-21 06-04-21 07-04-21 08-04-21 09-04-21 10-04-21 11-04-21 12-04-21 13-04-21 14-04-21 15-04-21 16-04-21 17-04-21 18-04-21 19-04-21 20-04-21 21-04-21 22-04-21 23-04-21 24-04-21 25-04-21 10% 15% 20% 25% 30% 0% 5% 01-04-21 02-04-21 03-04-2
Slide 6: Expected recovery
EXPECTED RECOVERY VACCINATIONS GAINING MOMENTUM IMPROVED COVID-19 DATA RESTRICTIONS GRADUALLY BEING EASED OCCUPANCY INCREASES DRIVEN BY DOMESTIC DEMAND GRADUAL INCREASE IN THE PACE OF RECOVERY OCCUPANCY IN SUMMER EXPECTED TO EXCEED LAST YEAR’S LEVEL GRADUAL MARKET STABILIZATION INTRA-NORDIC BUSINESS
Slide 7: Occupancy 2019, 2020, 2021
2019 2020 2021 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 7
Slide 8: Source: Benchmarking Alliance
Source: Benchmarking Alliance 8
Slide 9: Hotel openings 2021-2022
April 2021 Scandic Grand Central Helsinki Helsinki, Finland New 491 Opened in April May 2021 Scandic Strandpark (Copenhagen Airport) Copenhagen, Denmark New 357 May 2021 Scandic Landvetter Airport Gothenburg, Sweden New 223 September 2021 Scandic Nørreport Copenhagen, Denmark New 100 October 2021 Sc
Slide 10: Slide 10
Slide 11: Net sales Jan-Mar
Jan-Mar Jan-Mar 2021 2020 % Net sales 930 3,343 -72.2% Q1 FX -27 -0.8% Sweden -72.3% Organic -2,387 -71.4% Norway -62.8% New hotels 18 0.5% Finland -73.5% Exited hotels -70 -2.1% Other Europe -81.4% Like-for like -2,336 -69.9% Total -71.4% 11
Slide 12: State aid & rent discounts in Q1
2 STATE AID & RENT DISCOUNTS IN Q1 TOTAL DIRECT STATE AID IN Q1: 247 MSEK, OF WHICH SUPPORT SWEDEN: 97 MSEK FOR RENT OF 145 MSEK NORWAY: 124 MSEK FINLAND: 0 MSEK OTHER: 26 MSEK ADDITIONAL ~250 MSEK STATE AID EXPECTED IN Q2 RENT DISCOUNTS IN Q1: 143 MSEK SIMILAR LEVEL OF DISCOUNTS EXPTECTED IN Q2 Sca
Slide 13: Net sales and adjusted EBITDA by segment
January-March Net sales Adjusted EBITDA Adjusted EBITDA % 2021 2020 2021 2020 2021 2020 2021 ex. MSEK state aid Sweden 319 1,154 -214 -311 1 -67.1% 0.1% Norway 319 888 -74 -198 -64 -23.2% -7.2% Finland 209 833 -217 -217 36 -104.0% 4.3% Other Europe 83 468 -194 -220 -40 -233.6% -8.5% Central costs &
Slide 14: Cash flow and net debt
Q1 Adjusted EBITDA -775 Change in working capital -4 Paid tax -50 Interest, pre-opening costs and other items -66 Cash flow from operations -895 Investments in existing operations -21 Free cash flow before expansion capex -917 Expansion capex -64 Free cash flow -980 Net debt 5,768 Available liquidit
Slide 15: Sensitivity analysis during recovery phase
SENSITIVITY ANALYSIS DURING RECOVERY PHASE ~40% OCC ~50% OCC Scandic
Slide 16: Strengthened financing
16 STRENGTHENED FINANCING Gross proceeds: 1,609 MSEK Conversion price: SEK 43.3621 Yield to maturity: 3.25% (no coupon) Issue price: 89.41% of par value Expiry date: October 8, 2024 Maximum dilution: 41.5m shares (17,83%) * Total facilities extended until December 31, 2023 ° Certain adjustments of t
Slide 17: IFRS accounting effects
7 IFRS ACCOUNTING EFFECTS Due to temporary rent discounts and extended maturity of lease portfolio, the negative IFRS impact on net result is expected to increase to -560 MSEK for 2021 With the current portfolio, the negative impact will diminish over time and become positive from 2027 Estimated int
Slide 18: CONCEVEING R
CONCEVEING R
Slide 19: Scandic is prepared for recovery
SCANDIC IS PREPARED FOR RECOVERY LOW COST BASE * BROAD MID MARKET OFFERING + ENTERING RECOVERY WITH LOW COST BASE * HIGH FOCUS ON DOMESTIC GUESTS * SUSTAINABLE COST REDUCTIONS, ESPECIALLY WITHIN * DEVELOPED OFFERING TO CAPTURE GROWING LEISURE DEMAND GROUP FUNCTIONS & COUNTRY SUPPORT OFFICES > Scandi
Slide 20: Thank you
THANK YO WV Need || W Tie ic Z--— 4 oe | :