Tatry Mountain Resorts As · BSSE:1TMR001E
Tatry Mountain Resorts As — Investor Presentation (October 2012)
52 slides from Tatry Mountain Resorts As's investor presentation, October 2012
Slide 1: Dual Listing Investor Presentation October 2012
Dual Listing Investor Presentation October 2012 Warsaw, October 2012
Slide 2: We are here to revolutionize tourism in Central Europe!
We are here to revolutionize tourism in Central Europe! 2
Slide 3: TMR at a Glance
TMR at a Glance Leading and the only “Alpine style” mountain tourism services provider in the CEE region Natural monopoly in terms of no other similar mountains than the Tatras in the region Increasing quality with infrastructure investments of EUR 144 million during the last six years Signi
Slide 4: Our Vision: New Era of the Tatras
Our Vision New Era of the Tatras 4
Slide 5: Introduction – Our Team
Introduction – Our Team Bohuš Jozef Hlavatý Hodek CEO 2009 – present CFO 2009 – present • GM of JASNÁ, Nízke • Former CFO of JASNÁ, Tatry, Tatranské lanové Nízke Tatry dráhy • Led the consolidation • Top management posts in process of TMR’s Polish, Czech, and Slovak subsidiaries FMCG companies • PWC
Slide 6: TMR's Strategy
TMR’s Strategy Who We Are and What We Do 6
Slide 7: Our Potential
Our Potential Long History of Tourism in the Tatras Cultural and Natural Heritage 7
Slide 8: Challenges
Challenges The Mountain Resorts in 2005 8
Slide 9: Who We Are Today
Who We Are Today 9
Slide 10: Business Model Overview
Business Model Overview Hotel Segment Mountain & Leisure Segment 9 owned and managed hotels from 2 to 4-star Mountain Resorts – 4 resorts in the High and 704 rooms Low Tatras 67 km of ski trails (2012/13)* 1,768 beds Aquapark – Tatralandia in the Tatras’ valley New wellness spa in GH T
Slide 11: Our Resorts
Our Resorts Mountain Resort – Vysoké Mountain Resort – Jasná Aquapark – Tatralandia Tatry – Tatranská Lomnica and Nízke Tatry – Chopok Hotels – Holiday Village Starý Smokovec, Štrbské pleso North and Chopok South Tatralandia Hotels – Grandhotel Starý Hotels – Tri Studničky Smokovec (50%)
Slide 12: Our Market
Our Market Potential Foreign Visitors in the Tatras in 2011 “Natural monopoly” position (no other Czech Rep. 46% similar places in the region to provide the Other 16% “Alpine resorts feel” except for the Tatras) No competition within 1000 km east of TMR resorts U.K. 1% 7.5 million people livin
Slide 13: Our Strategy Based on 3 Pillars
Our Strategy Based on 3 Pillars Constant Increasing quality Strategic operations & with investments acquisitions in CEE services enhancement • EUR144 million over 6 • Aquapark Tatralandia • Enhancing customer years (including 2011 experience through current investments) • Špindlerův mlýn ski synergi
Slide 14: Our Assets Growth through Capital Investments
Our Assets Growth through Capital Investments Fixed Assets 300 000 € Total of EUR 144 million invested into 250 000 € development of our resorts and hotels 200 000 € thousands in the last 6 years (incl. current year 150 000 € investments) 100 000 € 50 000 € CAPEX 2007–2012: EUR 144 0€ million 20
Slide 15: Investments of 2010 – CAPEX of EUR 26 million
Investments of 2010 – CAPEX of EUR 26 million 6-seat cableway in Vysoké Tatry Happy End Jasná Grand Jet Jasná Nízke Tatry Orange 6-seat cableway Jasná Nízke Tatry 15
Slide 16: Investments of 2011 – CAPEX of EUR 29.6 million
Investments of 2011 – CAPEX of EUR 29.6 million 8-seat cableway Buková hora Vysoké Tatry Tatry Motion Board Shop Renovated room in hotel Grand Jasná New wellness Grandhotel Praha Tatranská Lomnica 16
Slide 17: Investments of 2012 – CAPEX of EUR 44 million
Investments of 2012 – CAPEX of EUR 44 million Funitel Jasná Nízke Tatry Tropical Paradise Tatralandia Funitel Jasná Nízke Tatry Tropical Paradise Tatralandia 17
Slide 18: Strategic Project: Špindlerův Mlýn
Strategic Project Špindlerův Mlýn Co-management of the ski resort Špindlerův Mlýn in the Czech Republic – (detailed agreement under negotiations) Potential for synergies (marketing) Resort facts: Best known Czech ski resort with greatest potential (12,000 hotel beds) The only 5-star Czech
Slide 19: Service Enhancement & Clients' Satisfaction
Service Enhancement & Clients’ Satisfaction* Will you visit our resorts in future? How satisfied are you with…? Accommodation quality 2% 3% 18% 42% 80% Number of cableways 4% 55% 31% Yes Yes and I will recommend No 65% Satisfied Somehow satisfied Not satisfied * Survey conducted during January – Apr
Slide 20: Operational Overview
Operational Overview What We Have Achieved and How 20
Slide 21: What Drives Our Revenues
What Drives Our Revenues Revenue KPIs Growth 21
Slide 22: Growth in KPIs
Growth in KPIs Visit rate in Mountain & Leisure Average Revenue per Customer** 800 738 18 € 16,04 16 € 14,92 700 584 14 € 600 11,93 499 thousands 12 € 10,54 500 443 437 9,13 10 € 400 8€ 300 6€ 200 4€ 100 2€ 0 0 0€ Vysoké Tatry Nízke Tatry Tatralandia* Vysoké Tatry Nízke Tatry Tatralandia 2009/2010 2
Slide 23: Pricing Strategy Boosts Sales
Pricing Strategy Boosts Sales Sale of multiday ski passes boosts operational profitability and balances out the visit rate Marketing synergies with Aquapark Tatralandia 6-day Ski Pass Sales 2010/2011 2011/2012 yoy Change High Tatras 2 634 3 972 51% Low Tatras 16 304 17 068 5% Stay Packages Sales
Slide 24: Impact of Ticket Pricing on TMR's Growth
Impact of Ticket Pricing on TMR’s Growth Operating Revenues vs.Ticket Pricing Annual increase of ticket prices is 45 000 € PLAN 32 € justified with the extensive 40 000 € 31 € 35 000 € CAPEX invested into development Avg. ticket price 30 000 € 30 € thousands of the resorts and hotels 25 000 € 29 €
Slide 25: Comparison with Other European Ski Resorts
Comparison with Other European Ski Resorts 250 50 € 45 € 200 40 € 35 € Trails, Capacity 150 30 € Price 25 € 100 20 € 15 € 50 10 € 5€ 0 0€ TMR PKL / Stubaier Ischgl Spindleruv Livigno Val Gardena Gastein Kasprowy Gletcher Mlyn Wierch Transportation Capacity/ hour (in ths.) km Trails 1-day Ticket Pric
Slide 26: No Impact of Snowfall on Visit Rate
No Impact of Snowfall on Visit Rate Snowfall vs.Visit Rate in the Tatras 140 250 000 120 200 000 Number of Visitors 100 80 150 000 cm 60 100 000 40 50 000 20 0 0 December December December February February February February January January January January March March March March 2009 2010 2011 2012
Slide 27: Financial Overview
Financial Overview How We Look Like in Numbers 27
Slide 28: Excellent Annual Results Confirm Our Strategy
Excellent Annual Results Confirm Our Strategy FY 2010/11 (Nov 2010 – Oct 2011) Main Consolidated Results Consolidated Revenues up 59%, 45 000 € 35% EBITDA +84%, NI +60%: 38 758 31,5% 31,6% 40 000 € Growth in the number of visitors by 27,2% 30% 20.5% in the mountain resorts 35 000 € 27,3% 32 57
Slide 29: Main Operating Results
Main Operating Results* Revenues EBITDA Double digit increases in both main Equally solid growth in both main segments segments in FY 2010/11 Operating Revenues by (Sub)segments EBITDA by (Sub)segments 42 000 € 12 000 € 37 000 € 10 000 € 2 768 +53% 11 732 +15% 1 287 32 000 € +73% +39% 8 957
Slide 30: Financial Position and Future Growth
Financial Position and Future Growth* Liquidity Asset Structure Other Other Current liquid funds** of EUR 47.753 Current Fixed 72% million 3% Assets Total assets EUR 312.348 million Fixed assets EUR 234.359 million Liquid Developm Real estate for development EUR 9.034 20% ent Real millio
Slide 31: Outlook & Future Growth
Outlook & Future Growth Where We Go from Here 31
Slide 32: Potential for Future Growth
Potential for Future Growth Conclusion of the first investment phase with expected positive impact on results already next FY Cross-border expansion in the CEE region Co-management of the ski resort Špindlerův Mlýn in the Czech Republic (detailed agreement under negotiations) Potential priva
Slide 33: Dual Listing in Warsaw & Prague
Dual Listing in Warsaw & Prague We are expanding our horizons beyond the Tatras… Expand our Shareholders’ Expand our Follow our PR synergies Shareholders Club client base vision base 33
Slide 34: Q&A – Thank You for Your Attention
Q&A Thank You for Your Attention 34
Slide 35: Appendices
Appendices Tourism Trends and Potential Cash Flow Statement Growth in KPIs Supported by Key Operating Results Macroeconomic Trends Key Financial Ratios TMR’s Client Target Area Sensitivity Analysis Overall Financial and Market Resort Comparison Performance Shareholder Structure
Slide 36: Tourism Trends & Potential
Tourism Trends & Potential Projected global growth of tourist arrivals 3-4% Mountain industry in 2012 to record 1 billion Extending variety of services offered East Europe’s international arrivals have Summer adrenalin sports and family tripled in past 5 years to 3 million friendly activit
Slide 37: Growth in KPIs Supported by Macroeconomic Trends
Growth in KPIs Supported by Macroeconomic Trends GDP vs.Tourist Spending per Capita in EU Countries 35 000 € Tourism expenditure per capita 2010 30 000 € R² = 0,8917 25 000 € DK AT 20 000 € 15 000 € GE 10 000 € SK CZ 5 000 € PL 0€ 0€ 10 000 € 20 000 € 30 000 € 40 000 € 50 000 € 60 000 € 70 000 € Rea
Slide 38: TMR's Client Target Area
TMR’s Client Target Area Val Gardena an Livigno 300 km driving distance > 38 Ba TATRY MOUNTAIN RESORTS
Slide 39: Overall Financial and Market Performance
Overall Financial and Market Performance TMR Stock Performance Key Data FY 2010/11 FY 2009/10 44,50 € Revenues EUR 38.8m EUR 24.3m 44,00 € EBITDA EUR 12.2m EUR 6.6m 43,50 € Net Profit EUR 9.2m EUR 5.7m 43,00 € 42,50 € EBITDA 31.5% 27.3% margin 42,00 € Net Profit 23.7% 23.6% 41,50 € margin 41,00 € EP
Slide 40: Consolidated Income Statement
Consolidated Income Statement in €'000 (except pet share values) 9M 2011/2012 9M 2010/11 1H 2011/2012 1H 2010/2011 FY 2010/2011 FY 2009/2010 Revenues 32 573 28 684 24 548 20 917 38 758 24 338 Costs of Sales -5 031 -4 268 -4 045 -3 206 -5 397 -3 560 Gross Profit 27 542 24 416 20 503 17 711 33 361 20
Slide 41: Consolidated Balance Sheet
Consolidated Balance Sheet In €'000 31/7/2012 31/10/2011 31/10/2010 In €'000 31/7/2012 31/10/2011 31/10/2010 Assets Equity Non-current Assets Ordinary Shares 221 338 221 338 221 338 Goodwill and Intangible Assets 4 004 3 805 3 897 Share premium 30 430 30 430 30 430 Property, Plant & Equipment 200 07
Slide 42: Cash Flow Statement
Cash Flow Statement* 1/11/2011- 1/11/2010 - 1/11/2009 - 1/11/2011- 1/11/2010 - 1/11/2009 - In €'000 30/4/2012 31/10/2011 31/10/2010 In €'000 30/4/2012 31/10/2011 31/10/2010 Operating Activities Investing Activities Acquisition of property, plant and Profit 6 172 9 027 5 759 equipment and intangible
Slide 43: Cash Flow Statement (continued)
Cash Flow Statement (continued) 1/11/2011- 1/11/2010 - 1/11/2009 - 1/11/2011- 1/11/2010 - 1/11/2009 - In €'000 30/4/2012 31/10/2011 31/10/2010 In €'000 30/4/2012 31/10/2011 31/10/2010 Net gain on cash and cash Financial Activities equivalents -2 228 3 622 907 Cash and cash equivalents at the Share c
Slide 44: Key Operating Results - Revenues
Key Operating Results* - Revenues Revenues in €'000 9M 2011/2012 9M 2010/2011 1H 2011/2012 1H 2010/2011 FY 2010/2011 FY 2009/2010 M&L 24 600 21 029 18 352 15 126 28 097 17 410 Mountain Resorts 15 327 14 437 12 678 12 110 17 849 14 934 Vysoké Tatry 7 411 6 240 5 311 4 408 9 675 5 986 Jasná Nízke Tatr
Slide 45: Key Operating Results - EBITDA
Key Operating Results* - EBITDA EBITDA in €'000 9M 2011/2012 9M 2010/2011 1H 2011/2012 1H 2010/2011 FY 2010/2011 FY 2009/2010 M&L 8 967 5 990 6 693 4 223 8 764 4 952 Mountain Resorts 5 811 3 872 5 289 3 643 4 805 4 799 Vysoké Tatry 2 492 1 763 1 584 1 155 2 901 1 444 Jasná Nízke Tatry 3 319 2 109 3
Slide 46: Key Financial Ratios
Key Financial Ratios 9M 2011/2012 9M 2010/2011 1H 2011/12 1H 2010/11 FY 2010/11 FY 2009/10 Profitability Gross margin (%) 84.6% 85.1% 83.5% 84.7% 86.1% 85.4% EBITDA margin (%) 31.6% 27.2% 31.9% 27.8% 31.5% 27.3% Operating margin (%) 14.9% 6.8% 17.1% 9.2% 4.1% -2.9% Net profit margin (%) 21.9% 28.0%
Slide 47: Sensitivity Analysis
Sensitivity Analysis Impact on Results Revenues FY Revenues FY Revenues 1H Revenues 1H in € millions Change 2010/11 2010/11 (%) 2011/12 2011/12 (%) Ski pass price +/- EUR 1.00 1.16 2.9% 0.70 2.7% Number of skier days/ Average revenue per visitor +/-10% 1.44 3.6% 1.20 4.7% Hotel occupancy/ ADR +/-10%
Slide 48: Resort Comparison
Resort Comparison Country Company / Resort No. of lifts Transportation Capacity/ hour Km trails 1 day ticket price* Slovakia TMR / Vysoké Tatry 20 21,385 26.7 33 TMR / Nízke Tatry 29 30,444 45 35 Vrátna Free Time Zone 14 10,850 14 27 Veľká Rača Snow Paradise 7 9,700 14 19 Park Snow Donovaly 15 14,10
Slide 49: Shareholder Structure
Shareholder Structure* Small Shareholders 6,4% 8,0% 41,0% Poštová banka, a.s. 7,4% J&T banka, a.s. 9,8% CLEARSTREAM BANKING S.A. TLD, s.r.o. 9,9% 17,4% Patria Finance, a.s. J&T banka, a.s. Clients's accounts - REPO 49 * As of July 9, 2012
Slide 50: Shareholders' Club
Shareholders’ Club Shareholders’ Club Benefits VIP Club No. of shares Benefit 2x year-round pass into all TMR resorts 25 6 - entries VIP ski in - ski out parking in TMR 40 12 – entries mountain resorts 80 25 – entries Discounts at hotels, restaurants, bars in 130 Season pass TMR resorts 250
Slide 51: Abbreviations Used
Abbreviations Used 1H – First Half of Fiscal Year (1/11 – 30/4) NI – Net Income 9M – First Nine Months of Fiscal Year (1/11 – 31/7) OCC – Occupancy ADR – Average Daily Rate per Room PKL – Polskie Koleje Linowe (Polish Cableways) AVG - Average PSE – Prague Stock Exchange CAPEX – Cap
Slide 52: Disclaimer
Disclaimer This material is exclusively for informational and promotional purposes. Its intention is to inform about the business strategy of the company Tatry mountain resorts, a.s., with its registered office at Demänovská Dolina 72, Liptovský Mikuláš 031 01, Identifications Number: 31 560 636,
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