Scandic Hotels Group AB (publ)

Welcome to the Scandic Hotels Group Q2 2026 report 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 and good morning everyone and thank you all for joining us for this Q2 presentation. My name is Jens Mathisen. I'm the CEO of Scandic and together with me I have our CFO Per Christiansen as always. Let's dive into the highlights so please turn to page 2. We delivered a good quarter with solid growth. We improved our earnings and also higher profitability. The business is performing well across most of our markets, with Finland remaining the exception. Market conditions were favorable, supported by a busy event calendar, strong leisure travel and stable demand for business travel and meetings. Demand was particularly strong in the capital cities of Sweden, Denmark and Ireland. Finland remained challenging throughout the quarter, while the Norwegian hotel market was affected by a hotel strike lasting more than six weeks. The recovery in Finland is taking longer than we had expected, but we remain focused on turning the performance around. We now expect a gradual improvement with a stable second half of the year with a financial performance on same levels as last year. During the quarter, we expanded the hotel portfolio, continued to grow ScandiGo, we secured a long-term financing framework, and we progressed the Dallata acquisition according to plan, with completion expected in the fourth quarter. Looking ahead, the booking situation remains strong. Compared with earlier this year, we now see better pricing conditions across our markets, supporting our expectation of a good third quarter with occupancy broadly in line with last year and higher average room rates. Please turn to page three. Let's here take a closer look at the financials for the quarter. I'm pleased with the result, which reflects the strong underlying development. Sweden delivered another strong quarter. Norway also performed well despite the strike. Denmark continued to show strength and the latter delivered another strong quarter. The positive development was seen across most of the markets while Finland continued to face a more challenging market. As a result, adjusted EBITDA increased to 796 million Swedish kronor, corresponding to a margin of 13.3% compared with 12.5% last year. High operational efficiency and disciplined cost control continue to support our performance. Please turn to page four. Here, let's take a closer look at the market development starting with the Nordics. Overall, the market development developed well during the quarter, supported by a busy event calendar, continued strong leisure travel, and also stable demand for both business travelers and the meeting and conference segment. Sweden had another strong quarter, particularly in Stockholm, where high activity in both leisure and corporate demand supported a healthy market. In Norway, the hotel worker strike had a significant impact on the market during the quarter, affecting both occupancy and room rates. Despite this temporary disruption, the underlying market fundamentals remained healthy. Denmark also continued to show strength, with Copenhagen benefiting from high international demand and a strong event calendar. As you can see from the chart, Finland has been the clear exception of this, not only during the second quarter, but throughout the first half of the year. But all in all, the Nordic hotel market is healthy, and based on what we see today, we expect market conditions to remain favorable going forward. Please turn to page five to have a look at the development of Ireland and UK. Ireland continued to perform strongly with particularly good pricing development across the market. The Dublin market also remained healthy, supported by a solid demand from both business and leisure travelers. The UK was stable with both London and the regional markets showing steady and in some areas improving market conditions. Please note that the market data on this slide covers April and May only as final June market statistics have not been yet published. Looking at Dallata's performance for the full quarter, it's also encouraging to see that the business continued to perform well relative to the market. Dallata delivered another strong quarter with particularly good performance across Ireland, London and the UK overall. These are attractive markets with good long-term fundamentals. Please turn to page six Let me give you a brief update on our hotel pipeline. We continue to expand the portfolio at a good pace. At the end of the quarter, including the largest pipeline, we have 20 hotels and more than 4,700 rooms in development across our markets. The pipeline includes a good mix of Scandic, Scandic Go, and the larger hotels with several attractive projects in prime locations. Together, this provides a strong platform for continued growth in the years ahead. Over the next slides, I'm highlighting some of the most recent openings and signings, so please turn to page seven. Here, we can highlight some of the recent development for ScandiGo. Since our first quarter presentation, we have continued to expand the ScandiGo portfolio with both new openings and new signings. During the quarter, we opened four new ScandiGo hotels, one in Helsingborg, one in Gothenburg, and our first two ScandiGo hotels in Finland, in Turku and Ålo. We also signed a new ScandiGo hotel in central Stockholm, further strengthening our presence in one of the most attractive hotel locations in the Nordics. ScandiGo is gaining traction. Interest from property owners remains strong and the concept continues to create attractive growth opportunities in prime city locations while allowing us to reach new customer segments. Please turn to page eight. Here are a couple of other activities since the previous quarter. We signed an agreement for our third hotel in Frankfurt, further strengthening our position in one of Europe's most attractive hotel markets. We also signed two new franchise hotels, continuing to build a high quality franchise portfolio in a disciplined way. Franchise is an important compliment to our leased portfolio, and it enables us to grow together with strong local partners. So overall activity remains high, and we continue to see strong interest from property owners across our markets. With that, I hand it over to Per for the financial updates.

Thank you, Jens. Good morning, everyone. I will now go through the Q2 financials. Please turn to page 10. Looking at the second quarter, we saw organic growth of 1.2%. Overall, good results, better than last year in Sweden, Norway, and other Europe, including the Lata. Norway was negatively affected by the six-week long strike, but results were mitigated by the hard work from the teams as well as the strike-related compensation. The much lower result in Finland compared to last year is explained mainly due to softer prices, rent costs affected by fixed rent agreements and guaranteed levels, and the saved hours in operations was offset by higher salary costs. The coming important third quarter looks in line with last year for Finland. Strong performance from Dalata. The contribution from the management contract gave us 78 million in top line and 66 million on the EBITDA level. Group cost in line with same quarter last year and efficiency improvements balancing the inflation and salary increases. In total, we saw a result of 796 million and a margin of 13.3%, an improvement compared to last year's margin. All in all, a stable result. Please turn to next page. We had a strong cash flow of more than 2 billion SEK on a rolling 12 month basis. Investments was in line with plan and we continue to deliver on our portfolio strategy. The free cash flow totalled of 0.9 billion on a rolling 12 basis. Please turn to next page. We have a strong financial position, net debt of 276 million, meaning a leverage of 0.1 times compared to 0.3 times same time last year. We are in a good position to support the portfolio growth and the plan acquisition of the Lata Hotel operations. All in all, we deliver a solid quarter. Please turn to next page. In the quarter, we signed a new long-term financing framework with the wider bank group. 7.5 billion SEK is committed. This support the plan acquisition of Dalata. The contract is a three-year tenor with extension options for another two years. I will now hand back to you Jens and please turn to page 15.

Thank you Per. So here let me wrap up with a few concluding remarks. Overall, I'm pleased with how the business continues to develop. We see good business momentum across most of our markets with Sweden, Norway and Denmark all performing well. The latter also delivered another strong quarter and continues to perform ahead of last year. We are not satisfied with the development in Finland during the quarter. The recovery is taking longer than we had expected, but we have had a clear plan in place for some time now and remain fully focused on turning the performance around. Based on what we see today, the booking situation for the second half of the year is stable and broadly in line with last year, giving us confidence that the performance will gradually improve from current levels. At the same time, we continue to develop Scandic at a good pace, We are expanding the hotel portfolio. ScandiGo continues to gain traction that the last acquisition is progressing according to plan and remains on track for completion in fourth quarter. And our new financing framework that Per just mentioned provides the financial flexibility to support our continued growth. Looking ahead, the booking situation remains strong as we enter the peak season. occupancy increased by almost three percentage points in the third quarter last year compared to the same quarter of 2024. Based on the current booking situation, we expect to maintain those strong occupancy levels this year. Compared with earlier this year, we now see better conditions for driving rates and we continue to execute on our pricing strategy. Together, this gives us confidence in a good quarter with higher average room rates. I feel very positive about where Scandic is today. We have good business momentum, a strong financial position and a clear growth strategy. Together, this gives us a strong platform to continue growing the business, improving profitability and further strengthening Scandic's market position. With that, I hand it back to the operator and we go to the Q&A. Thank you.

If you wish to ask a question, please dial pound key 5 on your telephone keypad. To enter the queue, if you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Alice Beer from ABG Sundal Collier. Please go ahead.

Hi, good morning. I have a couple of questions, but just let me start off with the outlook. You've guided for Q3 occupancy in line with last year and higher ARR. Is that rate improvement broad-based across Sweden, Norway and Denmark, or is it concentrated to a specific city or event?

No, it's a good question. Thank you. Overall, we see a very stable traction when it comes to occupancy. We even mentioned this a bit because last year we were trying to drive a bit more volumes into the markets. overall and that's why we increased from from approximately 71 to 74 percent occupancy three percentage points that was driven by a lot of campaigning this year we see a let's say more stabilized booking situation which also gives us more confidence in the ability to drive a more rate And this goes all across the markets, like we even mentioned, because it's clear that it was a disappointment in Finland for the quarter, but it's also very clear when we look ahead that the second half looks to be much more in line with last year, which was a much more normalized level. So we look all over markets, including Finland, for a more stabilized second half.

Okay, perfect. Thank you for that. And then, just continuing, you commented a bit about this in your closing statement, but if you could just expand on the Finland outlook. I mean, what specific observable data points, whether that's bookings or red power or corporate travel, what gives you confidence that H2 will be broadly in line with last year rather than further down?

It's very much linked to the business on books and let's say the day-to-day traction on the in-booking trends. When we looked at the second quarter, we also saw that the quarter was weak. And we were not gaining the same kind of bigger events as we did last year, which we normally have on the books for quite, let's say a long time before we enter. So we needed to pick up from other segments and that was simply not something that we could do alone in the market when the market didn't recover. When you look at the second half, we have much more events and let's say larger meeting events and and one-year events coming in that are already on the books. And we have a more stabilized corporate development in the second half than what we have seen in the beginning. So all in all, we're quite good at forecasting. And we were also good at forecasting second half. The only thing we couldn't really predict The strike in Norway, which of course came in after we announced our expectations for the quarter. But all in all, we have a good booking situation. Also, now we are in the middle of July and we have seen a very stable beginning and in some markets very solid beginning. You know, Stockholm has been strong in the beginning with, you know, some big concerts from Bad Bunny and we have had Jehovah's Witness in Stockholm for like 11 days between June and July, which has been also filling all of Stockholm. And of course, Sweden is a major market for us. So July started off very well in our markets.

Okay. Great, thank you for that color. And moving on then, could you talk a bit about your performance versus the market in the other markets if we exclude Dalata? I mean, Denmark market data, for example, is very strong Q2 print, but we didn't see quite the same performance for your other market segment. Could you just expand on other markets excluding Dalata?

I think we were, if you look at some of these, both in the latter, we are, of course, the latter, we are ahead of even the market. If you look at Norway, we are also ahead of the market. That even includes the fact that we had a higher impact on the Scandic hotels for the strike. Simply more hotels was taken out of Scandic. We had an impact of 52% of our hotels of that strike versus some of our competitors of around 30% and below percent of their markets or their hotels. And even with that, we actually take market shares. But we need to look at this from a longer perspective. Of course, in a single quarter, you can see hotelsgroup.biz When we see a stable environment in occupancy level and that's also our strategy to secure that going forward. So I think overall we are delivering quite solid in the markets but of course you can always look back and say okay in this market we should have been a bit more focused on driving higher prices to gain another percentage point on that. And that's easy to do afterwards. We try to do the best we can to yield the best way we do. And I think what I look at also in looking forward is with that focus in mind. So I'm satisfied with the focus in the company on doing all we can to drive rates.

Okay, sounds very simple. Just a final question for me then. Could you just provide some commentary on how much Norway's top line was affected by the strike? I mean, if I understand it correctly, please correct me if I'm wrong, but the compensation affected earnings, but not top line. So just how should we think about the underlying performance in Norway?

But I think in round figures, maybe it's like 100 million actually. So it's quite a lot of effects from top line during that period of time. So it's quite a lot that it was affected. And I think we mitigated that well, both through some of the salary support we get from a strike, but also through the fact that we had like I think like 1400 people or so out for the strike that were called out for strike. And that meant that every managers and central office and everybody was in operation to support our business. And I'm really proud of the way that Thank you. That's very clear. That was all for me. Thank you.

The next question comes from Adela Dashian from Jefferies. Please go ahead.

Good morning, gentlemen. One question on Sweden. We saw particularly strong profitability here in the quarter. How much of the margin improvement would you say is driven by a heavy events calendar?

Well, it's a good question, Dela, because I think we are definitely supported by that. But we also see, actually in Sweden, we see quite a healthy development on both the corporate and meeting segments as well. So it's not only event and leisure driven, but even the general leisure is having a good uplift in Sweden overall. Maybe it's because, like some journalists are writing about this morning, that more Swedes maybe tend to spend more vacation time in Sweden. It's a good environment right now for both the domestic and inter-Nordic traveling. And the weather is still good here and people, they enjoy it. So it might be that more people are actually having a bit more vacation time as long as weather is also good. from the Nordic weather this summer yet. So all in all, I think we had a good, you know, but it's a good, but also event calendar. You know, we had some good events, like I mentioned, we had Bad Bunny concerts two in a row. We had, it was also like an event, of course, with so many people. You know, attending that, that was filling Stockholm for like 11, 12 days. And of course that is supporting the result, but it is a very strong result. You know, we are up in Sweden 7.5% on occupancy and we are up 7.6% on REFPA itself. And that is throughout the quarter and June especially was very strong.

Okay, great. And then maybe also on Other Europe, can you, I don't know if you've touched on this maybe already, but can you speak a little bit about why REBPAR was down during the quarter? And despite this, you managed to deliver a strong margin. So maybe how those two coincide?

Yeah, I think, like you see, we have quite a lot of happenings in other Europe. We have also a new hotel in Stuttgart that are still on the ramp up. But all in all, we have a net sales increase of 7.4%. And you even see other Europe totally have a margin increase. So all in all, I'm actually satisfied with that. We will definitely see in the coming years that we have a huge focus on growth, especially in Germany, and we have more openings coming up. And of course, we need to expect that though some of these hotels are in a ramp up, and some of them also have a ramped up lease period of normally three years, so we pay less lease at the beginning, etc., But it will take some time to set these new hotels in the market. Copenhagen has been strong and continues to be strong. I would say Aarhus has been fairly weak. We also have one of our hotels that has undergone a big renovation in Aarhus. But if you look at Copenhagen, that continues to be a very strong market. And of course, our partnership with SAS is very good for us in that market because it drives a lot of new business into Copenhagen. So, of course, other Europe, including Denmark, is overall on a good traction.

Okay. And then lastly, just on the new financing framework and your balance sheets and so on, Should we expect, especially now also with Alata completing in Q4, should we expect you to pursue further expansion opportunities or what kind of capital allocation priorities do you have at the moment?

Yeah, I can take it. But I think, I mean, it's a good question. I think with the new finance agreement, we have a platform to firstly, of course, take on the lot operations and then have a healthy headroom for both market fluctuations over time as well as the in-year fluctuations. given that we are so cash generating, of course, in a year or two, there will be opportunities to take on further growth opportunity if that will be the case. And as we said before, we will, of course, balance the capital through expansion, organic expansion, dividend, it could come back also to of course buybacks and they might also of course be other growth opportunities coming up. But right now, I guess we will focus mainly on the data business and then integrate that successfully and then I guess other things might come.

Okay, thank you so much. That's all for me.

Thank you.

The next question comes from Jamie Rollo from Morgan Stanley. Please go ahead.

Thanks. Thanks for taking my question. Morning, everyone. Just back on Finland and the guidance for flat profits in the second half of the year, what rev part are you expecting to deliver that performance? And I know you talked about things looking better, but is that also a flat rev part? And also, how much of the Q2 deterioration in Finland was due to weak market demand versus company-specific issues like the renovations and the fixed minimum rents.

Thank you. Thank you very much, Jamie. Very good questions, I think, because you're totally right. Of course, there's like no excuse. We have, of course, our biggest hotel in Helsinki, which is the Marina Congress Center. that is undergoing a renovation as you remember from the last quarter and that will continue until year end. Of course, that affects some percentage points on our own business, but that's not an excuse. I think if you look at the market as a whole, the market was weak and both we and the market delivered a weak quarter. When we look ahead, We actually, when we guide for this, it is because when we look at the business trends and the booking trends and we look at the second half as a whole, we expect occupancy level to be close to the same levels as you saw last year. But we also expect to be able to drive some percentage points on rate We'll see how much, but we definitely expect to increase rate a bit to also mitigate some of the general cost increases that you always have on salaries, etc. And also these fixed leases. So that's why we guide for results close to the same result as last year for the second half. which was actually very solid. You see solid margins above 13% in second half as a whole. So another picture than what you saw in the second quarter. And I think it's important for us to guide a bit on that when that is the picture we see.

Okay, thanks. And then just on the rental costs for the group rose about 4% this pre-AFA 16, of course, in the second quarter. And that was quite a big pickup from the first quarter's 2% growth. The revenue growth of the company was pretty similar Q1 and Q2. So is that just the opening program with Scandic Go? How should we think about the maturity profile then of those new hotels? Or is there something else there on the mix of sort of fixed and variable leases?

Yeah, it's really the last one. You can say we are having a much larger share of fixed leases and hitting the guarantee levels in Finland with the current levels. So of course, when Finland is dropping, then it affects the lease right away. So when it's increasing, then you see the opposite. So of course, we expect a much lower normalized level of lease already in this quarter, the third quarter. So it's a bit about the mix, because if let's say the mix was the same all over, you wouldn't see this increase short term, but it's increasing due to this. lease levels in Finland where we have more fixed leases simply. That's also why we have said throughout the year, you know, Finland is a very efficient operation. We run the business very efficiently. So it's simply a top line game for us. We need to improve the top line in Finland. And that's why we put in a lot of efforts to strengthen that, which we also see slowly that we gain some result out of when we look ahead.

Okay, I get why that would have a margin impact, but I don't know why that would have an impact on actual rents going up more in the second quarter versus the first quarter. But anyway, okay. And then just finally, you give it a little bit of a stare on the second half of the year. So better REF PAR in Q3, flat profits in Finland. In terms of consensus, I know you don't guide, but I think visible alpha is at 2.85 billion adjusted EBITDA this year. Would you expect any changes after today?

We don't guide on that Jamie as you know but we try to give you as a precise guidance and that's mainly we do this simply for one reason we see that the result in Finland was weak in the second quarter and we think when we have another outlook for the rest of the year which is more stabilized in Finland and when we have such a good traction where we actually outperform all our other markets The next question comes from Karl-Johan Bonnevir from DNB Carnegie. Please go ahead.

Yes, good morning, Jens and Per. A lot of my questions already answered, but if you look at the GO concept now going outside Stockholm, and you have quite a good, I guess, feedback from how it has developed in Stockholm, have you any early signs on how it works in other cities for you?

Yeah, I think we definitely see that, you know, it's a new brand. It's an early, you know, it's still early days for the brand. It's a much easier, you know, when we do openings in the capital cities, of course, where we have lots of international business and lots of OTA business. So we definitely see that it's easier to build up the books of business very fast when it is like in capital cities. When we are in some of the smaller markets, we are tapping a bit more into the local environment and another kind of local customers. and that is taking a bit longer time and that's also something we look at when we sign new hotels going forward, how we secure that we have the local environment in place before we open up. So you will definitely see that we will continue our focus with ScandiGoals in the major cities. This is not a concept where we expect to go on the countryside because the brand is not mature enough for that We cover that well with the current Scandic brand. So that is at least learning. So you should expect us, even non-Nordic, if we grow with the brand into like Germany or UK island in the future, we will concentrate on the major cities if we do that.

And when you look at the other part of your concept changes so far this year, starting to in a lot of the Nordic market charge for the breakfast, What kind of take breaks do you now get for breakfast on your guests?

No, but it actually gives very, very good feedback. It is a bit different because internationally, for instance, let's say in Sweden and Norway and Finland, most customers, they buy breakfast. They simply, we have very few that doesn't take breakfast. And I think one of our competitors was also out and saying it's a bit of a difference in certain parts of Denmark. In Denmark, we definitely see that all the international guests, they buy breakfast. Some of the Danes, they don't. I don't know why. They are much lower percentage. So that is the only market which is still a bit odd compared to the rest. But in all other markets, it has a very good development and also like we expected. So, of course, this has an impact on the average room rates because now the prices are excluding breakfast on those. And so when you compare us with market, you need to take that into account. Now we soon, after July, we started the year ago. So soon in the rest of the third quarter, we have more comparable numbers. So I'm sure and now we have seen, which is very good, we have seen competition coming after. So some of our competitors have now also launched prices excluding breakfast. And now they need to spend the coming year on including that into all their pricing. And I think that's good. I think it's right. We are the last part of the world where breakfast was included. Otherwise, it's excluded in most of the world. So it is natural also when we see the huge increase and the development of international travel.

Looking at your portfolio pipeline, room pipeline, do you feel that you have enough of discussions ongoing to deliver on your old target of adding 10,000 rooms excluding Dalata up to 2030?

Yeah, absolutely. I think we have a very good traction and, you know, the number itself, for me, it's important that we grow with the right hotels in the right markets rather than, you know, whether it's eight or 12,000 rooms, eventually it needs to be the right one, you know, that adds value to Scandic. So we are more focused on that than growth itself. We are focused on the healthy growth. And just looking at the last quarter, we opened four new hotels. We also signed four new hotels. That was actually both two franchise hotels and a big one in Frankfurt, as you have seen, the third hotel in Frankfurt and one more hotel in Stockholm. So I think we deliver according to this. We have a solid pipeline, as you see, 20 hotels in the pipeline, and we are adding to that all the time as we are also opening new hotels all the time so we are growing Scandic steady and focused.

I must ask you as well on a more top level looking at how the market is able to drive room prices in Copenhagen up toward what I would call more international levels what needs to happen in say Stockholm, Oslo and the other big cities in in your portfolio to be able to get into that kind of same price dynamic.

Yeah, we have talked about this for many years and I think it starts with all the operators in the market that actually understands that there's a huge potential here. It's not only Scandic alone, we are like 16% of the market. We can of course drive rate as much as we try, but the whole market needs to follow and the Nordic market is a lot of local operators. And sometimes I think we miss out that, you know, the international business, they are so much used to pay much more for nice rooms like we offer in the Nordics. So we need to continue, you know, we get more and more traction on the international growth I think our growth with the SAS partnership is good for us because it adds a lot of guests internationally and those guests are used to paying much more and they're used to breakfast being excluded and all of that. So of course we try to yield higher prices with them and I hope we succeed over time to get into levels that are more comparable with a lot of the big cities in Europe where prices are more than double what you see in the Nordics.

and just give it a try on this one as well. Looking at now, I guess you have been operationally involved in Dalata for quite some time now and I guess you have been able to dig into the operating data of the operation. What kind of synergy potential do you see, say, making use maybe of your efficiency models from the Nordic operation and maybe Dalata's pricing models from the Irish UK models, I would say, on the group level at some stage.

But I think Dallata is a very healthy company. They are already today operating extremely good and healthy business. Of course, they are now close to 20 years old as a company. We are more than 60. And of course, like you say, we have been well known for having a very strong operational model. And we are very, very efficient here in the Nordic. So there's definitely some potentials in that. But we are not in any stress when it relates to that, because I think Dallata is a well-performing company already with margins in line with Scandi. And that's driven by much higher REF power, of course. and that's despite you know that they do have higher cost levels and I think we over time will be able to let's say optimize certain of these processes they're already looking at Scandic and already today they have started instead of having you know some of the all the headcounts per hotel they're starting to do clustering of that in the cities so that they maybe have like a revenue center sitting together in Manchester covering four hotels, et cetera, et cetera. So they have started to look at our operational model and I'm sure that once we get full grip of it in Q4, there will be a potential to optimize some of these, let's say, operational processes. On top line, they are really doing good and they are taking market shares and they grow well, the top line. So we don't want to, let's say, destroy what is already very strong. So it's a balance.

As a reminder, if you wish to ask a question, please dial pound key 5 on your telephone keypad. The next question comes from Andre Julard from Deutsche Bank. Please go ahead.

Good morning gentlemen. Three small questions if I may. First one about the segmentation. Could you give us some more color and more granularity on the trend you are registering between the MICE, the leisure and the business clientele considering that Q3 is traditionally mainly driven by the leisure trend. And on top of that, could you also give us some more elements about the restaurant trend considering that they've been a little bit at pain compared to the hospitality side during the past few years? Second question about Dallata, you were mentioning that the group was gaining market share. Are you still convinced by keeping the Dallata brands? or are you thinking about changing some hotels to Scandic? And last question about free cash flow. H1 was under pressure mainly because of calendar effect on these contracts. You are guiding that the fiscal year for cash flow should be in line with last year. Could you also give us some more elements on the H2 effects which are expected to compensate the H1 negative ones? Thank you.

Thank you, André. And then starting with the first one, I'll take the first three, I think, and then Per can talk a bit about the free cash flow trends. Leisure versus corporate, we absolutely see the same trend as we've seen for quite some time. It is leisure driving a lot of the growth. So it's events and leisure that are driving, let's say, driving the growth. And we see that in all markets. I would say corporate has been fairly stable. And then we even see some uplifted trends in some of the markets. We have seen some percentage points up on corporate segment in Sweden, for instance. But we also saw in second quarter that corporate were down in Finland and meeting was down. But that was also linked to some of the big meeting events that we had last year, which we did this year. So looking ahead for second half, we expect a stabilized environment when it comes to corporate overall and we expect that leisure continues to improve and drive you know both leisure and let's say events drive that so the trend is continuing also in the Nordics like you questioned if you look at the restaurant sales We see that overall it is very stable. We have quite a good sales mix today. Of course, we have an increase in, let's say, we have isolated the breakfast, so that has an impact on some of the F&B sales. We also see some small trends that people drink a bit less alcohol. That is a trend in all markets. People tend to drink a bit less alcohol. So we sell more of the non-alcoholic drinks. We also thereby focus more on mocktails and things that are without alcohol to secure we get the sales still. But it is, and of course, a lot of the F&B sales is also linked to the meeting and event. which is also I would say stable but isn't really improving it's on a stabilized level a bit lower from pre-pandemic levels but still stabilized so I think there's not a big let's say there's not a lot of things that we were not prepared for. I think we focus a lot on this about alcohol and non-alcohol because it's something that I think we all need to understand that people are more focused on non-alcoholic drinks even going forward. If you look at the brands, Dallata, we have communicated that we expect to keep the hotel brands as is. That means that if you look at Ireland, number one brand is Clayton, number two brand is Malgron in the market. So we actually own kind of the two most well-known brands in Ireland, even beating all the international brands. So they are very strong in Ireland these two brands and even in UK they have gone really let's say improved their brand awareness during the last years so they have actually a very solid brand awareness and picking up and beating a lot of more international well-known brands So for sure, I would say UK, Ireland, there's no reason to change those brands. So we are a multi-brand operator already with Scandic, Scandic Go and our signature collection. And now we have Clayton and Meldron into that portfolio. and even we operate a few Hilton Hotels and IHG Hotels as you know. So we are a multi-brand operator and will continue to be that with Dallata. When we open new hotels in new markets, like less in Germany, there will be like two openings in the fourth quarter in Berlin, That will be one Clayton and one Scandic because that was prepared to be that for a long time. But going forward, we focus still on growing the Scandic brand in Germany. So you will see more Scandic growth in the coming years when we sign new hotels until we have a more solid footprint overall in Germany from that. So that's the plan for the brands. And then Per, free cash flow?

Yeah, looking at the cash flow, we can see, you know, if you look at the second quarter, since we had the strike in Norway and a little bit disappointing Finland, we're suffering working capital-wise from prepaid rents that will, of course, normalize in the second half. hotelsgroup.blogspot.com are planning to get, you know, contribution from the latter in the fourth quarter owning that business. And in looking at COPEX, we have some openings in Q3, but no openings in Q4 and H1 2027 is a little bit lower. So COPEX wise, it will be a little bit less outflow COPEX on the second half. So that will give us a solid, solid foundation for cash generation.

Okay. Thank you very much.

There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.

Thank you very much all and we just thank you for dialing in here and wish you all a fantastic summer and talk to you after the summer break.