Scandic Hotels (SHOT) investor relations material

Executive summary

• Record Q3 results: net sales rose 7.9% to SEK 6,877m, adjusted EBITDA reached SEK 1,330m and free cash flow was SEK 945m.

• Dalata acquisition completed, while a Hilton partnership expands commercial opportunities and supports Nordic hotel development.

Financial highlights

• Q3 net sales were SEK 6,877m, up 7.9% YoY, including 4.5% organic growth; adjusted EBITDA rose to SEK 1,330m from SEK 1,088m, with a 19.3% margin versus 17.1%.

• Q3 reported operating profit was SEK 1,312m and net profit SEK 648m; excluding IFRS 16, net profit was SEK 828m and diluted EPS SEK 3.86.

• Q3 free cash flow was SEK 945m versus SEK 593m; 9M free cash flow rose to SEK 1,004m from SEK 621m.

• 9M net sales rose 5.1% to SEK 17,564m; adjusted EBITDA was SEK 2,231m, with a 12.7% margin.

Outlook and guidance

• Q4 occupancy and room rates were expected to be slightly higher YoY; underlying demand was stable, but Q3's event-driven uplift was not expected to repeat.

• Finland was expected to perform slightly better in Q4 than a year earlier as demand stabilised.

• Combined pro forma adjusted EBITDA margin was 11.0%; indicative pro forma EPS accretion was ~25%, including estimated financing costs, and was not guidance for future performance.

• Maintenance CapEx was expected to be ~3.5% of net sales next year; leverage was expected to decline from 1.5x to below 1.0x in 1.5–2 years, subject to expansion activity and other assumptions.

• The combined hotel pipeline comprised 20 hotels and ~5,000 rooms, including Dalata's pipeline.