Scandic Hotels Group AB (publ)

Welcome to the Scandic Hotels Group QT 2025 presentation. For the first part of the conference call, you will be in listen-only mode. During the questions and answers session, you are able to ask questions by dialing pound key 5 on your telephone keypad. Now I will hand the conference over to the speakers. CEO Jens Mathiessen and CFO Per Christensen, please go ahead.

Thank you very much, operator. And good morning, everyone. And thank you for joining us this morning. As said by the speaker, my name is Jens Mathisen. I'm the CEO of Scandic. And together with me, I have our CFO, Per Christiansen. Please turn to page two. We have, as you know, a packed agenda today, and we will start by presenting the second quarter. And then after that, we will turn to the exciting news we announced earlier today that we are pursuing the opportunity to acquire the hotel operations of the latter hotel group. So let's jump into the second quarter and please turn to page four. All in all, we delivered a very good quarter with organic growth and a strong cash flow. Net sales amounted to 5.8 billion Swedish kronor, corresponding to organic growth of 2% when excluding negative currency effects. We delivered a solid result, although lower compared to the same quarter last year. And this was mainly due to the calendar effects with Easter coming late, also currency headwinds and one-off items that had a positive impact on the results in Q2 last year. I also want to highlight that we delivered a strong cash flow in the quarter, significantly improved compared to last year, which we will come back to. Overall the market development was positive in the quarter, although demand was temporarily impacted in April due to the late timing of Easter. We also then saw a good rebound in May and in June, supported by continued strength in leisure travel and also a healthy event calendar across our markets. Norway delivered a strong quarter with organic growth of over 6% and solid results. Sweden's performance was stable with a good recovery following a weak April and the situation in Finland remained challenging but occupancy is improving and we believe we are well positioned when the market turns. Denmark showed also solid numbers, and Germany remained stable, although facing tough comparables due to last summer's Football World Cup. During the quarter, we signed agreements for three new hotels. We also opened our sixth signature hotel, and after the end of the quarter, we signed an agreement for a new hotel in Hamburg. So another important milestone was the launch of our new website, which will further enhance the customer experience and strengthen the guest relationships and drive sales. Looking ahead to the third quarter, bookings are strong and even better than at the same time last year, which is of course very pleasing. So please turn to page five. Results are on solid levels in the quarter with an adjusted EBITDA amounting to 723 million Swedish kronor compared to 841 million Swedish kronor last year. This corresponds to a margin of 12.5%. That said, the low result compared to the same period last year was mainly due to calendar effects with Easter falling in April, as well as currency headwinds and one-off items. Currency effects had a negative impact of around 22 million Swedish kronor on the result. In addition, there was no one-off items this quarter compared to positive one-off items of 31 million Swedish kronor in the same quarter last year. We maintained high efficiency and strong cost control throughout the quarter. And apart from the weak development in April, I'm pleased with the overall performance. We performed well and delivered good results in both May and June. Please turn to page six. Here you can see the market occupancy rates for the second quarter this year compared to the same period last year across the Nordic countries. The Easter effect was clearly visible in April with low occupancy across all markets compared to the same month last year. Demand was temporarily impacted, primarily affecting business travel around the holidays, but we also saw a shift in the leisure segment with more guests choosing to travel later, particularly in May and in June. In May, we saw a good recovery following the week end to April. That said, the growth rate in Sweden was soft partly due to the tough comparable figures from last year when major events such as the Taylor Swift, as you remember, concerts in Stockholm and also Eurovision Song Contest that was held in Malmö. June showed strong performance with high occupancy levels and continued price growth. Leisure travel remained robust and the event calendar across our markets continued and contributed positively. Scandic's occupancy rate was 65.9%, slightly above the average market occupancy of 65.7%. Please turn to page 7. This is market data showing average room rates for Sweden, Norway, Finland, and Denmark indexed to the corresponding month in 2019. At fixed currency rates, the market average room rate continued to develop positively during the quarter, showing a year-on-year increase of 1.7%. Scandic's average room rate declined slightly compared to last year, and when adjusted for currency effects, the development was more or less flat. This was mainly due to the continued weak price development in Finland with the impact, particularly the evident in Vanta area where increased capacity compared to last year has put some pressure on rates. Price development was also affected by the already mentioned tough comparables in Sweden in May last year, especially in Stockholm, where major events contributed to very strong price levels. Please turn to page eight. Here you can see the market REFPA development indexed to the corresponding month in 2019. At fixed currency rates, the market REFPA in the quarter grew by 4% year on year. Scandix Repa increased by 1% compared to last year and at fixed currency rates by 3.2%. So all in all, the market development was positive. Please turn to page nine. Here you can see the pipeline. We are maintaining a high pace in the development of our portfolio. During the quarter, we signed agreements for three new hotels with around 500 rooms. And after the end of the quarter, an additional hotel in Hamburg with 430 rooms. By the end of the quarter, we had 2,730 rooms in the net pipeline, corresponding to roughly 5% of our portfolio. Please turn to page 10. A bit more on the latest hotel signings. In Sweden, we signed two new hotels, a centrally located Scandic Hotel with 236 rooms in Uppsala, and a new resort hotel in the popular ski destination of Salen, offering 120 rooms and also 16 apartments. In Finland, ScandiGo continues to grow at a good pace. We have signed a new ScandiGo in Turku with 138 rooms and further expanding our presence in the Finnish market and within the economy segment, which we believe is good. Finally, also in Germany, we signed a large project in Hamburg. The new hotel will have 430 rooms and represent another step in growing our footprint in Germany. Please turn to page 11. In June, we opened our sixth signature hotel, what we call the Dock by Scandic. It's located in the heart of Tromsø in Norway. With 305 rooms, the hotel nearly doubles our room capacity in the city and further strengthen Scandic's position in Northern Norway, a region with growing tourism and increasing demand. So a very positive opening for us. With that, I'd like to hand it over to Per, our CFO. Please turn to page 12.

Thank you, Jens, and good morning. Please turn to page 13. We saw a solid performance in the quarter, especially strong in Norway. Revpar improved by 0.9%, driven by an increased occupancy that was somewhat balanced by a lower average room rate. We had the organic growth of 2% in the quarter, and we reported an adjusted EBITDA of 723 million SEK with a margin of 12.5%. High efficiency and cost control in the quarter. We used much fewer hours in the hotel operations. We saw a negative Easter effect in April, and we also saw a slower pickup end of April, mainly for the business to business segment affecting the April month. We had negative currency effect of top line of 193 million and on EBITDA of 22 million. one offs was 31 million last year and zero this year in total adjusted for these three areas we think it's a good result in in line with last year please turn to next page we had a very strong cash flow development in the quarter operational cash flow amounted to 2.3 billion last 12 months More rooms sold with advanced payments, rent payments stabilized and decrease in trade receivables was the main contributors. Very strong free cash flow in the quarter of 710 million SEK versus 463 million SEK last year. Investments in line with the plan. Please turn to next page. We have a very robust financial position, net debt of 660 million SEK versus 1,658,000,000 SEK last year. Leverage at 0.3 times and improvement since last year. And now I hand back to you, Jens.