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Definitions

Hotel-related key ratios

ARR (Average Room Rate)

The average room rate is the average room revenue per sold room.

FTE (Full Time Equivalent)

The number of full-time employees calculated as the total number of working hours for the period divided by the annual working time.

LFL (Like-for-like)

LFL refers to the hotels that were in operation during the entire period as well as during the corresponding period of the previous year (no new or exited hotels for the year is included).

OCC (Occupancy)

Refers to sold rooms in relation to the number of available rooms. Expressed as a percentage.

RevPAR (Revenue Per Available Room)

Refers to the average room revenue per available room.

Pre-opening cost

Refers to costs for contracted and newly opened hotels before opening day.

EQUITY-RELATED KEY RATIOS

Earnings per share

The profit/loss during the period related to the shareholders of the Parent Company, divided by the average number of shares.

Equity per share

Equity related to the shareholders of the Parent Company, divided by the number of shares outstanding at the end of the period.

Equity per share, SEK 30 jun 2018 30 jun 2017 31 dec 2017
Equity attributable to owners of Parent Company 7 588 000 000 6 839 000 000 7 323 000 000
Number of shares, end of period 102 985 075 102 985 075 102 985 075
Equity per share, SEK 73,7 66,4 71,1

FINANCIAL KEY RATIOS

EBT

Earnings before tax.

EBIT

Earnings before interest and taxes.

ALTERNATIVE PERFORMANCE MEASURES

Adjusted EBITDAR

Definition: Earnings before pre-opening costs, items affecting comparability and before rental expenses, depreciation and amortization, interest and taxes.

Justification: Rental expenses is a considerable expense in Scandic’s income statement and therefore this ratio, that also adjusts for rental expenses, provides an increased possibility to compare Scandic’s ongoing operations over time.

Adjusted EBITDAR-margin

Definition: Earnings before pre-opening costs, items affecting comparability and before rental expenses, depreciation and amortization, interest and taxes as a percentage of net sales.

Justification: This ratio gives a margin ratio adjusted for all items that can cause problems when comparing Scandic over time. The ratio therefore increases the possibility to evaluate profitability and Scandic’s operations over time.  

Adjusted EBITDA

Definition: Earnings before pre-opening costs, items affecting comparability, depreciation and amortization, interest and taxes, adjusted for the effects of finance lease.

Justification: Adjusted EBITDA is a ratio that is used to present the underlying operating result. The ratio is used by Scandic’s investors, analysts and management to evaluate Scandic’s ongoing operations.  

Adjusted EBITDA-margin

Definition: Earnings before pre-opening costs, items affecting comparability and before depreciation and amortization, interest and taxes, adjusted for the effects of finance lease as percentage of net sales.

Justification: Adjusted EBITDA-margin shows the underlying margin before items affecting comparability and pre-opening costs, depreciation and amortization which increase the possibility to compare earnings in Scandic’s ongoing operations.

EBITDA

Definition: Earnings before interest and taxes.

Justification: EBITDA is a ratio showing the value that the ongoing operations generates and is therefore of importance to Scandic’s investors, analysts and management.

EBITDA-margin

Definition: EBITDA as a percentage of net sales.

Justification: The EBITDA-margin shows the margin generated by the ongoing operations and is therefore of importance when assessing the ongoing operations.

Adjusted EBIT

Definition: Earnings before pre-opening costs, items affecting comparability, interest and taxes, adjusted for the effects of finance lease.

Justification: Adjusted EBIT intends to increase understanding for the ongoing operations including depreciation, and provide the possibility to evaluate EBIT over time.

Adjusted EBIT-margin

Definition: Earnings before pre-opening costs, items affecting comparability, interest and taxes, adjusted for the effects of finance lease as a percentage of net sales.

Justification: The ratio shows the underlying margin including depreciation, before pre-opening costs and items affecting comparability which provides a more comparable ratio over time compared to non-adjusted EBIT-margin.

EBIT-margin

Definition: Earnings before interest and taxes as a percentage of net sales.

Justification: The ratio shows earnings for the Group and is used by management.

EBIT, EBITDA och EBITDAR
Apr-jun 2018 Apr-jun 2017 Jan-jun 2018 Jan-jun 2017 Jan-dec 2017 Jul-jun 2017/2018
Profit/loss for period 259 209 117 175 711 653
Taxes 16 46 11 49 90 52
Net financial items 50 46 86 83 124 127
EBIT 325 301 214 307 925 832
Adjusted EBIT 441 330 387 353 1 022 1 056
Depreciation and amortization 212 131 411 262 549 698
EBITDA 537 432 625 569 1 473 1 529
Items affecting comparability 80 12 104 12 30 122
Pre-opening costs 36 17 69 34 67 102
Effect of finance lease, fixed and guaranteed rental charges -34 0 -65 0 0 -65
Adjusted EBITDA 618 461 733 615 1 570 1 688
Variable rental charges 479 389 771 638 1 442 1 575
Fixed and guaranteed rental charges 737 584 1450 1156 2 323 2 617
Effect of finance lease, fixed and guaranteed rental charges 34 0 65 0 0 65
Adjusted EBITDAR 1 868 1 434 3 019 2 409 5 335 5 945
0 0 0 0 0 0
Net sales 4 748 3 770 8 539 6 865 14 582 16 256
0 0 0 0 0 0
EBIT-margin 6,8% 8,0% 2,5% 4,5% 6,3% 5,1%
Adjusted EBIT-margin 9,3% 8,8% 4,5% 5,1% 7,0% 6,5%
EBITDA-margin 11,3% 11,5% 7,3% 8,3% 10,1% 9,4%
Adjusted EBITDA-margin 13,0% 12,2% 8,6% 9,0% 10,8% 10,4%
Adjusted EBITDAR-margin 39,3% 38,0% 35,4% 35,1% 36,6% 36,6%

Items affecting comparability

Definition: Items that are not directly related to the normal operations of the company, for example, costs for transactions and restructuring.

Justification: In order to provide an opportunity to evaluate Scandic’s ongoing operations and profitability at a certain point in time, it is of value to present items that are assessed as non-recurring.

Interest-bearing net liabilities

Definition: Liabilities to credit institutions and commercial papers minus cash and cash equivalents.

Justification: Interest-bearing net liabilities is used to calculate the company’s indebtedness, which is one of Scandic’s financial targets. The definition chosen corresponds to the definition used for the calculation of indebtedness, according to Scandic’s loan agreements.

Interest-bearing net liabilities 30 jun 2018 30 jun 2017 31 dec 2017
Liabilities to credit institutions 3 353 3 401 3 769
Commercial papers 1 199 0 0
Cash and cash equivalents -161 -371 -140
Interest-bearing net liabilities 4 391 3 030 3 629

Working capital, net

Definition: Total current assets exclusive of cash and cash equivalents minus total current liabilities , exclusive of derivatives instruments, current portion of finance lease liabilities and commercial papers.

Justification: There is a need to optimize cash generation to create value for our shareholders. The management team is therefore focused on working capital and on reducing lead times between income generation and payments received.

Working capital, net 30 jun 2018 30 jun 2017 31 dec 2017
Current assets, exclusive of cash equivalents 1 925 1 463 1 386
Current liabilities -3 188 -2 491 -2 856
Working capital, net -1 263 -1 028 -1 470