Scandic Hotels Group AB (publ)

Welcome to the Scandic Hotels Group Q3 Report 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, Speaker, and good morning, everyone, and thank you for joining us this morning. My name is Jens Mathisen. I'm the CEO of Scandic, and I'm here, as always, together with Per Christiansen, our CFO. Please turn to page two. As you probably understand, we have a packed agenda for today. So we will start with the quarter and some update on that and then give you an update on the acquisition of the latter afterwards. Let's move straight to the highlights of the quarter and please turn to page four. We deliver a strong performance with good growth result and strong cash flow development. Net sales reached 6.4 billion Swedish kronor and excluding negative currency effects, organic growth was over 5% in the quarter. We continue to meet the market with high efficiency and very tight cost control. The Nordic hotel market remained good. Norway once again delivered a very strong quarter with organic growth of close to 10% and improving margins. Sweden performed well and Denmark showed momentum. We are developing Scandic at a good pace and continue to grow our portfolio. We have now launched Scandic's new app, which together with our new website, loyalty program, and the other commercial initiative that we presented at our Capital Market Day marks an important milestone. With all of this, we are building a much stronger commercial platform and are moving past the major investment pace, which means lower investment needs going forward. Looking into the fourth quarter, we expect good market conditions. Bookings are good and in line with last year. And as usual in the autumn, we see an increase in corporate travel and conferences. Lastly, the acquisition of the latter, which I mentioned, is progressing very well. And we will take a closer look at that later in this presentation. Please turn to page 5. We report good results with adjusted EBITDA of almost 1.1 billion Swedish kroner, which was in line with last year. This corresponds to a margin of 17.1%. The slightly lower margin compared with last year was mainly due to currency effects and somewhat higher costs related to the overall higher pace of commercial development. Pierre will give more comments on this later in this presentation. Please turn to page six. You know this page. Here you can see the market occupancy rates for the quarter compared with last year. Overall market development was good with higher occupancy across all countries and each month. Sweden continued to improve and the Norwegian market performed very well. Denmark also performed strongly, supported by growing international tourism to Copenhagen. And in Finland, occupancy was higher, but pricing remained weak due to a soft macro environment and also tough comparables in Finland following a very strong event calendar, especially in July last year. All in all, the Nordic market shows good momentum. Scandic's occupancy rate was around 74% in line with the market. Please turn to page 7. This slide shows market data for average room rates in Sweden, Norway, Finland and Denmark, indexed to the corresponding month in 2019. At fixed currency rates, the market's average room rate grew by 3% year-on-year. Scandic's average rate for the same market declined slightly compared with last year, but when adjusting for currency, our average rate grew by 2%. The slightly lower average rate was mainly due to the weak pricing situation in Finland, where you all know we are holding a large position. It's positive, though, that the demand is there and increasing. And when purchasing prior also the power returns, the market will be able to charge higher prices also in Finland. So overall pricing remains solid, supported by good market conditions. Please turn to page eight. Here you can see the market RevPAR development index to the corresponding month also in 2019. At fixed currency rates, the market RevPAR grew by 7% year-on-year during the quarter and Scandix RevPAR at the same markets increased by 4% compared with last year and 5% at fixed currency rates. This reflects a continued good demand environment across all markets supported by solid occupancy and stable pricing. Please turn to page nine. Here you can see the pipeline. And since the last quarter, we have actually signed agreements for two new hotels in Hamburg, as well as a franchise agreement for a hotel in Norway. In addition, we have decided to open our first ScandiGo in Norway. By the end of the quarter, we had around 3,400 rooms in our net pipeline, corresponding to about 6% of our total portfolio. We continue to grow in a very disciplined way with a well-balanced pipeline in line with our targets. Please turn to page 10. Here you can see our two new hotels and two new projects coming up in Hamburg. The first one is located right in the heart of Hamburg with direct access to the city's main bus terminal and train and subway lines. It will offer 325 rooms and is planned to open in 2028. The second hotel will offer an exclusive experience in downtown Hamburg. Within walking distance of Berliner Tor, it will have 430 rooms and is scheduled to open in 2030. Please turn to page 11. And first, ScandiGo is expanding in Oslo and Norway. We are converting the hotel ScandiGrensen into a ScandiGo, which will open in the first half of 2026. This will be our first ScandiGo in Norway. It's a great location right in the city center. The second project is Scandic Victoria Floor, a new franchise hotel scheduled to open in December this year, 2025. With that, let me hand over to you, Per, and please turn to page 13.

Thank you, Jens, and good morning, everyone. I will now go through the Q3 financials. We saw a good organic growth of 5.3% in the quarter. Norway and Denmark with strong performance and Finland on the other end struggled a little bit with a tougher market situation impacting the pricing. Sweden had a stable performance. EBITDA ended at 1088 million SEK versus 1077 million SEK same quarter last year. We saw some currency headwinds affecting the results and we also had the negative non-recurring item of 15 million previous year. Central and group cost is higher than last year due investments in commercial and IT capabilities. From next year, we expect to have a group cost on somewhat lower level as a percentage of sales. Please turn to page 14. We saw strong operational cash flow in the quarter of 2.3 billion last 12 months, improved working capital and investments in line with plan. Please turn to page 15. We have a very strong financial position, net debt of 62 million, meaning a leverage of zero times. We are well positioned to support the portfolio growth agenda, the acquisition of the Lata Hotel operations, as well as our dividend policy. I will now hand back to you Jens and please turn to page 16.