Sunborn Finance Oyj: INTERIM REPORT FOR JANUARY - MARCH 2023

Sunborn Finance Oyj: INTERIM REPORT FOR JANUARY - MARCH 2023

STOCK EXCHANGE RELEASE

This is a summary of the Q1 2023 interim financial report. The complete report is attached to this release and is also available at www.sunborn.com/press/

Key Figures (IFRS) - Sunborn Finance Oyj
EUR thousand	1 Jan- 31 Mar 2023	1 Jan- 31 Mar 2022	1 Jan - 31 Dec 2022
Revenue	1 035	949	3 802
EBITDA	832	771	3 093
Investment property (Spa Hotels)	62 223	61 759	62 195
Total equity	2 193	2 377	2 562
Bond	49 778	49 980	50 212

Sunborn Finance Oyj Financial summary 1 January – 31 March 2023

Sunborn Finance revenue 1.035 M€ consists of fixed lease income from the operator and other services income. Lease income Q1 2023 was 0.965 M€ (Q1 2022: 0.884 M€). Other services income refers to personnel costs for facility services. Costs overall were in line with previous year.

According to December 2022 valuation reports the value of the Spa hotels is at Naantali Spa 52.6 M€ and at Ruissalo Spa 26.8 M€ (1/3 of Ruissalo Spa is owned by Sunborn Finance and shown as its assets).

 Sunborn Saga Oy Financial summary 1 January – 31 March 2023

 First quarter is the lowest season in the Finnish travel industry. Against expectations and signs, Q1 revenue increased by 37 % from Q1 2022 from 3.93 M€ to 5.37 M€. A major boost was the increased level of business in the health travel segment and corporate groups. All KPI’s related to customer satisfaction improved from 2022. 

Notable events during and after the end of the reporting period and estimated future development

Renovations continued in Q1 2023. In Ruissalo conversion of 26 rehabilitation rooms to executive hotel rooms commenced and will add capacity and new products, ready for summer holidays. This renovation will be followed by restaurant renovations in Naantali and lobby area refurbishment in Ruissalo.

The burden of staffing shortages reported earlier in our various operations has eased. Both our hotels have been able to recruit new workers for different departments especially for the high season in summer.

The demand for travel is increasing and booking forecasts are promising.

Business environment

Corporate business and rehabilitation show signs of improvement, whereas the inflation caused by the war in Ukraine still effects customer spending on food and beverage and treatment sales. The travelling industry continues to adapt at the same time as there is pressure to increase prices.

Customer satisfaction of the hotels continues to be good. Net promotion score is on a high level in both hotels and is expected to improve as the renovation program continues.

Short-term risks and uncertainties

Sunborn Finance’s financial risks related to business are market risk (including interest rate risk), credit risk, liquidity risk, refinancing risk.

Floating interest rate risk has not been hedged and may negatively and materially impact on Sunborn Finance Oyj liquidity.

In a written procedure initiated on 2 December 2022 and closed on 9 January 2023, a requisite majority of the holders of the Bonds gave their consent to certain requested amendments to the Terms and Conditions and extension of maturity for repayment until 9th February 2024. Management views the current high yield market conditions to be less favourable but refinancing to be available subject to terms and conditions.

Sunborn Finance Oyj
Board of Directors

For additional information, please contact:

Sunborn Group Executive Director Hans Niemi, hans.niemi@sunborn.com

Sunborn Group CFO Niina Stade, niina.stade@sunborn.com

DISTRIBUTION:
Nasdaq Helsinki Ltd
www.sunborn.com/press/

Disclaimer

The information contained in this release shall not constitute an offer to sell or the solicitation of an offer to buy securities of Sunborn Finance Oyj in any jurisdiction.