Pandox Ab Class B · OMXSTO:PNDX_B
Pandox Ab Class B — Morgan Stanley (June 2020)
19 slides from Pandox Ab Class B's conference presentation, Jun 18, 2020
Slide 1: A clear game plan in a difficult situation
A clear game plan in a difficult situation Anders Nissen, CEO Liia Nõu, CFO Morgan 18 ▪ 06 ▪ 2020 Stanley PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS Lobby @Radisson Blu Hotel, Basel
Slide 2: A flexible specialist
Our business concept A flexible specialist Pandox’s core If these conditions business is to own are not in place, hotel properties and Pandox can choose lease them to strong to operate the hotel operators hotel itself PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 3: Four operational models
Multiple options Four operational models 1 Lease agreement 2 Management agreement 3 Owned and operated with franchised brand 4 Owned and operated with independent brand PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 4: A well-diversified portfolio
Strategic position A well-diversified portfolio Pandox Group Property Management Operator Activities 156 35,018 136 29,235 20 5,783 Hotel properties Rooms Leased properties Rooms Operated properties Rooms SEK 65.3bn 84% 16% Property market value Property market value Property market value Including
Slide 5: A pan-European position
Strategic position A pan-European position Size and scale Geographical presence Partner network Portfolio composition Stakeholder recognition PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 6: Good geographical balance
Strategic position Good geographical balance 2.1% 39.7% ✓ 15 countries ✓ 90 destinations 18.7% ✓ >30 brands and partners 39.6% PANDOX – EXCELLENCE IN HOTEL OWNERSHIP AND OPERATIONS
Slide 7: 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
Slide 8: A quarter with two faces
Q1 2020 in brief A quarter with two faces Positive start of the year with a stable growth in January and February Historic demand collapse in March, due to COVID-19 and unprecedented government actions Occupancy rates between 5-25 percent from mid-March across Europe 10% R12M -14% Jan-Mar 2020 -12%
Slide 9: COVID-19 effects on Pandox
Q1 2020 in brief COVID-19 effects on Pandox Very low demand due to COVID-19 and unprecedented government actions Currently, minimum and fixed rent main source of income Currently, Operator Activities at minimum capacity with almost no revenue Cost base now largely at par with minimum and fixed rent
Slide 10: Minimum and fixed rent
Current revenue Minimum and fixed rent Minimum rent and fixed rent main source of revenue Approximately MSEK 500 per quarter Minimum rent higher in Europe, lower in the Nordics Discussions about temporary payment terms when possible No changes in lease agreements Rent payments on track PANDOX – EXCE
Slide 11: Valuations based on established method
Property portfolio Valuations based on established method Value change Comments per 31 March, 2020 Total property portfolio market value amounted to MSEK 65,345 (63,469) Average valuation yield for Investment Properties was 5.42 (5.41) percent and for Operating Properties 6.40 (6.41) percent -1.1% Y
Slide 12: 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 13: 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
Slide 14: Five priorities
Respond Five priorities Liquidity – Cash is king! • Operating costs, capex and investments have been reduced 1 • SEK 4.3 billion in liquid funds and unutilised credit facilities • Close and constructive dialogue with business partners on temporary payment changes when possible • Close and constructi
Slide 15: Five priorities
Respond Five priorities Business – Stay alive! • Keeping hotels open with limited service gives several advantages: 3 Contact with local market Easier to manage the property First on the frontlines when activities start up again Only marginal higher cost compared to have hotels closed Properties – P
Slide 16: Plan for the recovery
Restart Plan for the recovery The hotel market has hit bottom and we are waiting for the world to open again The recovery will come in phases First green shoots in June-July Domestic and regional demand from leisure and business will lead the recovery Occupancy in Europe of around 40 percent towards
Slide 17: What's next?
Reinvent What’s next? Demand from domestic leisure has started to improve from low levels Demand from domestic business will follow, where mid-market hotels easily accessible by car/train will be winners Air bound premium and meeting hotels will be losers Meeting segment to gradually recover when re
Slide 18: Q&A
Park Centraal Amsterdam Q&A 18
Slide 19: Head office and contact details
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