Pierre et Vacances SA · EURONEXT:VAC
Pierre et Vacances SA — Pierre & Vacances-Center Parcs — H1 2016/17 Earnings Presentation
29 slides from Pierre et Vacances SA's earnings presentation, May 31, 2017
Slide 1: 2016/2017 First-Half Results
2016/2017 FIRST-HALF RESULTS 31 May 2017 2016/2017 FIRST-HALF RESULTS
Slide 2: Contents
CONTENTS 1 First-half results 2 Tourism: operating progress and outlook 3 Property development: operations in progress and projects 4 Appendix – Reconciliation tables - P&L IFRS 2016/2017 FIRST-HALF RESULTS 2
Slide 3: First-half results
1 First-half results NB: The revenue and financial indicators commented on in this press release stem from operating reporting with the presentation of joint-ventures under proportional consolidation. The reconciliation tables with IFRS accounting are presented at the end of this presentation. 2016/
Slide 4: Revenue (1/2)
Revenue (1/2) H1 2016/17 was affected by the shift in the school holidays from Q2 to Q3 of the year and to a lesser extent, by the reduction in the stocks operated. The Group’s tourism performances therefore need to be analysed on a comparable data basis i.e. adjusted for the impact of these two fac
Slide 5: Revenue (2/2)
Revenue (2/2) Focus on accommodation revenue: €335m, up 3.2% like-for-like +3.2% Like-for-like change : +€10.2m -3.3% Shift to H2 of Easter school holidays: -€10.6m -1.2% Net reduction in stocks operated: -€3.9m -1.3% Change in current scope: -€4.3m Revenue by division PVTE: €160m • Excluding Adagio
Slide 6: Current operating income
Current operating income Note: The seasonal nature of the tourism businesses in H1 of the year combined with the linear accounting of expenses leads to a structural operating loss over the period. In H1 2016/17, this seasonal nature was heightened: - For the tourism businesses: - By the shift to H2
Slide 7: Current operating income
Current operating income Focus on tourism current operating income H1 2015/16 H1 2016/17 -73.4 +1 -4 +7 -8 -82.6 Contribution gain from reduction in Cost inflation offer (PV and rental -2 France) -1 Revenue indexation CPE excluding Calendar -2 supply and effects (PV Maeva.com calendar France + effec
Slide 8: Net income
Net income H1 2017 H1 2016 Revenue 614.7 585.5 Current operating income -96.1 -68.8 Tourism -82.6 -73.4 Property development -13.5 4.6 Financial expenses -9.6 -9.9 Other income/expense net of tax -3.3 -2.4 Equity affiliates -0.4 0.3 Taxes 3.5 5.3 Net income before change in fair value of ORNANE bond
Slide 9: Net debt
Net debt Further reduction in Group debt: -€46m excluding optional component of ORNANE bond Change in net bank/bond debt (excluding rental commitments at Ailette and optional component of ORNANE bond) €m Note: the seasonal nature of the tourism businesses in H1 of the year leads to a structural net
Slide 10: Outlook
Outlook Third-quarter 2016/2017 revenue Tourism revenue Property development revenue In view of the portfolio of reservations to date, revenue Revenue from property development in Q3 2016/17 is from the tourism business should grow on a like-for-like set to be lower than that of 2015/2016, in line w
Slide 11: Tourism: operating progress and outlook
Tourism: operating progress and 2 outlook 2016/2017 FIRST-HALF RESULTS 11
Slide 12: Mountain Focus
Mountain Focus Strong performances on the winter season (Oct. To April) +5% growth in REVPAR +4% growth in Average Letting Rates 86% average Occupancy rate - 95% occupancy rate in February - 100% occupancy rate over weeks of 11 and 18 February +4,1 pts Improvement in NPS score (*) 60% of arrivals ex
Slide 13: Sales, e-Commerce and digital strategy
Sales, e-Commerce and digital strategy • Customer Data • Work’s Councils - Development of the Prospects base - New flexible amount and linear card offer - Roll-out of Data Intelligence project: - Simplification of price grids - Optimisation of Display return on investment - Roll-out of Maeva.com off
Slide 14: Brand development
Brand development • Strategy to move upscale and improve the customer experience - 7 mountain residences renovated - +600 Superior and Exceptional apartments - Opening of PV Premium Deauville - Presqu’île de la Touques (December 2017) - Growth in customer satisfaction and Net Promoter Score • Servic
Slide 15: Brand development
Brand development • Faster development of flexible arrivals and departures - Reservations +50% - 55% of new customers (specific adaptation of operating procedures on-site) - Integration into marketing campaigns • Improvement in customer experience via digital - Integral part of customer experience -
Slide 16: Brand development
Brand development • Stepping up development of Maeva.com - 29,000 products in France and Spain - Modernisation of all digital tools - Integration of organisations and technologies • Rental management - 1,700 certified individual homes in 90 destinations - 700 new mandates in six months - 20% in new
Slide 17: Brand development
Brand development - Stay/Live /Enjoy marketing campaign brought to television - New marketing approaches - Breakfast included - Valuation of exceptional and rare typologies • Roll-out of Stories – overhaul and animation of public areas - Four new functions in reception areas Library@Adagio Shop@Adag
Slide 18: Property development: operations in progress and projects
Property development: operations in 3 progress and projects 2016/2017 FIRST-HALF RESULTS 18
Slide 19: Villages Nature joint venture with Euro Disney
50/50 joint venture between PVCP Euro Disney An innovation which is a reference of sustainable tourism 32km from Paris and 6km from Disneyland® Paris Phase 1: • Lake-side and forest villages over175 ha • 1,730 cottages/apartments 2016/2017 FIRST-HALF RESULTS 19
Slide 20: Villages Nature: 1st tranche of Phase 1
1st tranche of Phase 1 • 5 recreational universes combining entertainment and discovery: • The Aqualagon • The BelleVie farm • The Forest of Legends • The Extraordinary Gardens • The Lake Promenade • 916 cottages and apartments (i.e more than 3,500 beds), divided into three ranges offering three dif
Slide 21: Center Parcs Domains under construction
Center Parcs Domains under construction Extension of CP Trois Forêts (Moselle) - France CP Allgau (Baden-Wurttemberg) – Germany 141 cottages sold as a block to MACSF 1,000 cottages Facilities: forest house, spa, reinforced sports hall,… Leisure and sports facilities: 25,000 covered sqm Block sale to
Slide 22: Center Parcs Domains under renovation
Center Parcs Domains under renovation • Sales operations with individual and institutional investors of existing cottages and facilities renovated on behalf of current institutional owners. • 17 domains in the Netherlands, Germany and Belgium currently owned by institutional investors Potential of
Slide 23: Center Parcs Domains under renovation: operations underway
Center Parcs Domains under renovation Operations underway Investors Amount of works Block sale to ATREAM (424 cottages cottages and 648 cottages and CP Port Zelande – The Netherlands facilities) €23m recreational facilities Individuals (224 cottages) Sunparks Vielsalm - Belgium 350 cottages and Bloc
Slide 24: Center Parcs development projects in France
Center Parcs development projects in France 3 Center Parcs Mid Size • 400 cottages by Domain • Saône-et-Loire and Jura: - Preliminary administrative instructions • Lot-et-Garonne: - Building permits due to be issued in September 2017 Center Parcs Roybon (Isère) • 20 February 2017: PVCP appeal to Sta
Slide 25: Pierre & Vacances development projects in France
Pierre & Vacances development projects in France Deauville – Presqu’île de la Touques Méribel – l’Hévana Plagne Aime 2000 PV Premium 5-star residence PV Premium 5-star residence PV Premium residence (120 apts). 161 apartments 93 apartments PV Famille residence (370 apts). • Résidence PV Premium 5 ét
Slide 26: Pierre & Vacances development projects in Spain
Pierre & Vacances development projects in Spain Framework agreement with Eurosic on financing of PV residences and resorts in Spain • Acquisition by Eurosic of property assets destined to be renovated, managed by PV and sold in units • Pierre & Vacances partnership: assets transfers, project managem
Slide 27: Development in China
Development in China Confirmation of development potential in China and first forthcoming achievements Start-up of effective development: • Note: PVCP-HNA agreements signed in November 2015, joint-venture created in May 2016, CEO recruited in November 2016, team in place since January 2017. • 9 site
Slide 28: Appendix: Reconciliation tables - P&L IFRS
Appendix 4 Reconciliation tables - P&L IFRS 2016/2017 FIRST-HALF RESULTS 28
Slide 29: Reconciliation tables – P&L IFRS
Reconciliation tables – P&L IFRS Change in Tax on other H1 2017 fair value of operating opera ting IFRS 11 H1 2017 ORNANE income/expense (Euro m illio ns) reporting adjustments IFRS Revenue 614.7 - 27.8 586.9 Current opera ting income -96.1 +13.2 -82.9 Other operating income/expense - 3.3 -0.3 +0.9
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