Pierre et Vacances SA · EURONEXT:VAC
Pierre et Vacances SA — Pierre & Vacances — FY2013/2014 Earnings Presentation
36 slides from Pierre et Vacances SA's earnings presentation, Dec 4, 2014
Slide 1: Full-Year 2013/2014 Results
FULL-YEAR 2013/2014 RESULTS 4 December 2014
Slide 2: Table of Contents
TABLE OF CONTENTS 1 Overview of key Group items 2 Growth in 2013/2014 results 3 Tourism: outlook 4 Property development: widescale European projects 5 Conclusion 2
Slide 3: Overview of key items
Groupe Pierre & Vacances @nterParcs
Slide 4: Overview of Key Items (1/2)
OVERVIEW OF KEY ITEMS (1/2) • European no. 1 in local tourism in 300 sites in Europe • Brands with strong reputations: Pierre & Vacances, Center Parcs and Adagio • A diversified tourism offering between the brands Sound fundamentals • An integrated business model (tourism and property development) •
Slide 5: Overview of Key Items (2/2)
OVERVIEW OF KEY ITEMS (2/2) A simplified management structure Group General Management Committee: Gérard BREMOND Chairman and CEO Martine BALOUKA-VALETTE Patricia DAMERVAL Thierry HELLIN CEO Tourism Deputy CEO Deputy CEO Pierre & Vacances-Center Parcs (Finance, Development, Audit, (Development, Lega
Slide 6: 2013/2014 full-year results
2 2013/2014 full-year results
Slide 7: Turnover (1/2): Resilient tourism, strong property development
Turnover(1/2): Resilient tourism business Strong property development business Euro millions Group TOURISM turnover +9% 1 415 +9% Accommodation turnover: +1.2% (+1.6% excl. supply 1 301 effects), outperforming a deteriorated market1: 274 - Growth in occupancy rates from 67% to 70% (+5.7%). 170 +62%
Slide 8: Turnover (2/2): Focus on accommodation turnover
Turnover(2/2): Resilient tourism business Strong property development business Focus on accommodation turnover Accommo- Euro millions dation Center Parcs Europe: turnover +1.2% 763 +3.0%, +0.6% excluding supply (Bostalsee) +1.2% 754 - Growth in occupancy rates from 71% to 72% - Decline in net averag
Slide 9: Growth in underlying operating profit (1/2)
Growth in underlying operating profit (1/2) TOURISM – underlying op. profit : +44% PROPERTY – underlying op. profit: +28% Underlying operational profit x 4.5 2012/13 2013/14 19.1 14.9 +10 EBITDA -12.4 -12 -6.9 +13% +9 2012/13 2013/14 -2,5 -4 +5 Turnover Short Structural Rental Cost Inflation DIOSI(*
Slide 10: Growth in underlying operating profit (2/2)
Growth in underlying operating profit (2/2) 2013/14 Tourism REVPAR* +3.6%(incl. 1.8% mix effect) Growth Property development turnover €274m (+62%) Turnover from property reservations with individual investors €234m Impact of disposals/withdrawals from +€4m loss-making sites in 2012/13 Rentals saving
Slide 11: A huge improvement in net earnings
A huge improvement in net earnings Euro millions Pre-tax 2012/2013 2013/2014 Evolution underlying Proforma (*) profit Turnover 1306.7 1 415.4 +8% +54% Underlying operating profit 2.7 12.2 +352% Net earnings Financial expenses -16.2 -18.3 +43% Underlying net profit (loss) before taxes -13.5 -6.2 +54%
Slide 12: Strengthening the Group's liquidity
Strengthening the Group’s liquidity Roll-out of new financing sources and extension of average debt duration - Renewal and prolongation of syndicated loan for €185m (vs. €130m) maturing in 2019 (vs. 2015). - Issue of ORNANE bonds, 3.5%, maturing in 2019 and redemption of 96.5% of the OCEANE bonds,
Slide 13: Growth in tourism reservations in Q1 2014/2015
Growth in tourism reservations to date in Q1 2014/2015 Pierre & Vacances Tourisme Europe ■ Growth in off-peak season in seaside destinations (September/October holidays, Bank holidays of 1 and 11 November in France) => turnover: +5% ■ Healthy prospects for mountain winter season with: - Growth in tu
Slide 14: Tourism: outlook
ay Groupe ~- ‘ Pierre & Vacances s = @nterParcs 7 : “= ne , Ky) Tourism: outlook
Slide 15: Operating organisation: A structured professional team
Operating organisation: A structured professional team Martine BALOUKA-VALETTE Tourism CEO Pierre & Vacances-Center Parcs Communication Tourism/ Planet PV Charles Antoine PINEL Mark Haak Wegmann Laurent BASNIER Laurent CURUTCHET Paul COLLINSON CEO CEO Deputy CEO Deputy CEO Head of Operating Innovati
Slide 16: Product offering: Strengthening the value proposal (1/4)
Product offering: Strengthening the value proposal (1/4) A “concept” brand, unique in Europe An original and theme-based client experience in each of the 24 domains, specifically focusing on one client segment: - Gradual development of more than 80 new activities (30 of which by end-2014), fitting
Slide 17: Product offering: Strengthening the value proposal (2/4)
Product offering: Strengthening the value proposal (2/4) The leading Tourism Residence network in France and Spain Structuring and enriching services (standing out from rentals by individuals): - Increased flexibility with arrivals and departures possible every day - Offer of packaged services pre
Slide 18: Product offering: Strengthening the value proposal (3/4)
Product offering: Strengthening the value proposal (3/4) Transformation underway towards new distribution models and rental management New platform since June 2014 - A strong distributor promise: Choice Real-time availability Price Exclusive offers Secure and advantageous payment terms (
Slide 19: Product offering: Strengthening the value proposal (4/4)
Product offering: Strengthening the value proposal (4/4) A stable busines model suited to the current economic environment 98 aparthotels, high growth in network : - 51 Adagio, 47 Adagio access. - 15 aparthotels opened over the past 12 months International expansion stepped up - 23 aparthotels l
Slide 20: Digital: Roll-out of digital strategy underway
Digital: Roll-out of digital strategy underway ■ Websites and mobiles - Center Parcs - Overhaul of website (inspirational navigation/ergonomics) - Q1 2015: activities accessible directly on website before holiday - Pierre & Vacances - Roll-out of mobile site to all countries - Launch of packaged for
Slide 21: Digital: Roll-out of digital strategy underway
Digital: Roll-out of digital strategy underway ■ Social networks - Active management of communities - Events relayed on social networks (#foodtrucksurleau, Kids climate conference, Go Pro Videos…) - Programme to produce specific contents ■ New technological platforms - Development of new programme o
Slide 22: Optimising distribution
Optimising distribution Direct distribution ■ Services and activities made available on line (à la carte/packaged) ■ Audit of Call Center in order to optimise conversion rate ■ For Pierre & Vacances, adapting prices and production costs for different stay durations and their changes (short stays/lon
Slide 23: Costs: Further cost cutting
Costs Further cost cutting Reducing head office and site costs ■ Optimising distribution - Audit of call-center to reduce production costs - Dematerialising client documents (letters/travel documents etc.) - Reducing number of catalogues and streamlining formats (shifting some of savings generated t
Slide 24: Lease renewal policy and alternative management methods (1/2)
Lease renewal policy and alternative management methods (1/2) Strengthening lease renewal policy to help improve PV’s performances ■ When leases mature, systematically offering further management by Group taking into account tourism potential of each residence : - No change or adjusted of fixed rent
Slide 25: Lease renewal policy and alternative management methods (2/2)
Lease renewal policy and alternative management methods(2/2) Management mandates as source of aaditional growth ■ A business with no financial commitments - Revenues paid solely depending on turnover generated. - A response to lease exit maturities enabling strategic stocks and destinations to be ke
Slide 26: Overview
Overview 1. Position as leader in tourism residences confirmed 2. Growth and differentiation strategy based on: - Shaking up the product offering with the strengthening of client experience and value proposal - Developing digital and personalised client relations - Optimising distribution methods by
Slide 27: Widescale European property developments
4 Widescale European property developments
Slide 28: Financing systems and diversified management methods
Financing systems and diversified management methods Diversified property marketing ■ With individual investors - In France, attractive profitability (with tax incentive regimes) in a refuge stock investment - Extension in Germany (Bostalsee), the Netherlands and Belgium ■ With institutional investo
Slide 29: Center Parcs France
Center Parcs France Domaine du Bois aux Daims (Vienne) ■ 800 COTTAGES on 264 hectares of land ■ INVESTMENT: €350m, incl. €138m in equipment financed by a semi-public company (Vienne authorities, Poitou-Charentes region, CDC,…) ■ COTTAGES acquired by 7 institutional investors and individuals => 97% m
Slide 30: Center Parcs Germany, Belgium and Holland
Center Parcs Germany, Belgium and Holland Algau (Baden-Wurttemberg) ■ 750 COTTAGES ■ INVESTMENT: €250m Negotiations underway with European institutional investors ■ PROSPECTIVE OPENING: 2018 Vielsam (Belgian Ardennes) ■ Existing Sunparks domain transformed into a Center Parcs by: - Enhancing facilit
Slide 31: Villages Nature
Villages Nature ■ ORIGINAL “ONE PLANET LIVING” CONCEPT: - 50/50 joint venture created by the Pierre & Vacances Center Parcs Group and Euro Disney S.C.A. - A major innovation in terms of sustainable tourism, founded on quest for harmony between Man and Nature - All administrative authorisations have
Slide 32: Pierre & Vacances Premium
Pierre & Vacances Premium Flaine – Les Terrasses d’Helios ■ 5-star Pierre & Vacances residence ■ 119 ski-out apartments ■ Heated indoor pool, outdoor jacuzzi, hammam and Deep Nature Spa ■ Opening: December 2014 Deauville – Presqu’île de la Touque ■ 5-star Pierre &Vacances residence ■ 161 seaside apa
Slide 33: Spain and Morocco
Spain and Morocco Spain ■ Pierre & Vacances Spain currently manages, mainly on behalf of banks, 2,500 homes under leases or management contracts on the Costa Brava, Costa Dorada and Costa Del Sol. ■ Prospective growth over next three years: 2,000 additional apartments Morocco ■ A brand-new tourism a
Slide 34: Overview
Overview 1. Diversified financing and management methods 2. Sizeable development projects in Europe Potential of almost €2 billion in property development programmes CP Vienne Villages Nature – Phase 1 (group share of 50%) CP Roybon CP Mid-size Deauville Senioriales and other programmes 2013/14 FY r
Slide 35: Conclusion
5 Conclusion 35
Slide 36: Conclusion
Conclusion 1. A sharp improvement in 2013/2014 results: Turnover growth of 9% Underlying operating profit multiplied by 4.5 2. Tourism: a strategic plan in the operating acceleration phase Strengthening of the client value proposal Optimising marketing and rental management methods Further
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