Compagnie des Alpes SA · EURONEXT:CDA
Compagnie des Alpes SA — FY2005-2006 Earnings Presentation
39 slides from Compagnie des Alpes SA's earnings presentation, Dec 15, 2006
Slide 1: al
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Slide 2: Contents
Contents 1 – Compagnie des Alpes at 15 December 2006 2 – 2005 – 2006 Results 3 – The growth model of both business lines 4 – Strategy and Outlook 2
Slide 3: Compagnie des Alpes: A major leisure provider in Europe
Compagnie des Alpes A major leisure provider in Europe 11 –– Compagnie Compagnie des des Alpes Alpes at at 15 15 December December 2006 2006 Two business lines Ski areas (Number one worldwide) Leisure parks (Number four in Europe) ! " # $ % $ & ' ( ) ( Balanced. “year ‘round” operations *+ , + Diver
Slide 4: 2005 / 2006: a record year
2005 / 2006: a record year 11 –– Compagnie Compagnie des des Alpes Alpes at at 15 15 December December 2006 2006 Sales +21.8% EBITDA +28.4% Operating income +31.6% Attributable income +33.8% Earnings per share +10.7% Cash flow +28.0% Free cash flow 27 million In 2006, CDA generated the best progress
Slide 5: The year's highlights
The year’s highlights 11 –– Compagnie Compagnie des des Alpes Alpes at at 15 15 December December 2006 2006 October 2005 CDA increases its stake in the capital of Saas Fee Bergbahnen from 38% to 41% December 2005 100% takeover of Serre Chevalier Ski Développement May 2006 CDA and Grévin Headquarters
Slide 6: We met the strategic objectives set in 2002
We met the strategic objectives set in 2002 11 –– Compagnie Compagnie des des Alpes Alpes at at 15 15 December December 2006 2006 2 "3 ! 1 / . , . # " " $ + , + + , + " " 0 . . / * At 30 September 2006 6
Slide 7: A satisfactory winter season
A satisfactory winter season 11 –– Compagnie Compagnie des des Alpes Alpes at at 15 15 December December 2006 2006 Lift sales: +4.4% on a like-for-like basis 4 ( $ 5 6 7 8 ( 9 & : - ;< + =$ ! ; + > ? 5: ? " : 9 ; *+ 8 ; + Renewed growth in volume: +1.4% (+ 160,000 days) 8 ! - " ! " 58 ; #+ 7 4 ; + 9
Slide 8: A summer season impacted by the weather
A summer season impacted by the weather 11 –– Compagnie Compagnie des des Alpes Alpes at at 15 15 December December 2006 2006 Leisure park sales: +44% real scope . # 5 $ 9 ( $ 5 6 ( 9 ; *+ Visitor numbers (including Starparks/Walibi) & @ ;< ! 5; < + 9 4 ( < ! 5 + . 9 " ; A ! 5; + 9 Increase in recei
Slide 9: Contents
11 –– Compagnie Compagnie des des Alpes Alpes at at December December 15, 15, 2006 2006 22 –– 2005 2005 –– 2006 2006 Results Results 33 –– The The growth growth model model of of both both business business lines lines 44 –– Strategy Strategy and and Outlook Outlook 9
Slide 10: Sales growth: +21.8% real scope
Sales growth: + 21.8% real scope 22 –2005 –2005 –– 2006 2006 Results Results =$ ( , =$ ( - D , # " 2 ( ( $ ;A < C " ( ($ ( - =$ ! ; * ; . . * . A # ;A <+ 7 8 & $ 6 ( ; < ; # B2 B4 7 . * . # ; A+ 10
Slide 11: Sharp increase in EBITDA and operating margins
Sharp increase in EBITDA (+ 28.4%) and operating margins 22 –2005 –2005 –– 2006 2006 Results Results ' . # + + =$ ( < #+ A * + ; + 7 8 * + < + ;A# + 2 $ * A < B A + * A A A+ ; A + Ski areas: 4 ! " > ( - ( 5# + - # ! ##+ 9 7 ; + 5 9 Leisure parks: : 3 " 6 ( $ 5; . # # 9 ($ - " 5 . 9 ( $ $ -) Other: 1
Slide 12: Attributable income: +33.8%
Attributable income: + 33.8% 22 –2005 –2005 –– 2006 2006 Results Results . # =$ ( 2 ( A # A ; #+ = - " $ < # ; + B 6 * ; * + 'F -- ; # + % * A ; A + 4 " " * ; A+ The increase in the costs of debt is largely due to financing the StarParks acquisition % " . *# <, , # ! . * <, , 4! ( <, , # + Tax rate:
Slide 13: Earnings per share and dividends
Earnings per share and dividends 22 –– Les Les 2005 2005 –– 2006 2006 Results Results # =$ ( 4 " " 5. 9 * ; A+ % " - $ 5$ 9 * # < # # ; <+ ' ( $ <. A*. ; *+ C ! $ <. *. ; A+ B ! 5. 9 * ; + + ! + <+ +25.9% increase in earnings per share 35% of attributable income payout Interim dividend of 1 paid on
Slide 14: Cash flow and balance sheet
Cash flow and balance sheet 22 –– 2005 2005 –– 2006 2006 Results Results . # = $ - A % 6 *A A A $ - # < # % - ! ** < = * * < > - " < C " ,' F + *A+ +28% increase in cash flow Net capex: -7.4% including disposals of 7 million in non strategic assets Brisk growth in free cash flow Balanced financial s
Slide 15: Contents
1 – Compagnie des Alpes at December 15, 2006 2 – 2005 – 2006 Results 3 – Growth model for our two business lines 4 – Strategy and Outlook 15
Slide 16: The Growth model
The Growth model 3 – The Growth model Ski areas: an evolving, high-performance model Leisure parks: a new dimension through the StarParks acquisition 16
Slide 17: Ski areas: an evolving, high-performance model
Ski areas: an evolving, high-performance model 3 – The Growth model A European leadership position and prime, high-altitude locations: A - ( - ' *+ $ 5 9 Concession holder confidence: concessions renewed % ! " # G H . C " # ) I A H . A faithful customer base: <+ - 5 # + - 9 $ ! #+ -( ( ! =C4 ! $ =C4
Slide 18: Ski areas: a mature market
Ski areas: a mature market 3 – The Growth model The French market is number one in Europe ( 1 billion - 56 million days) but sees little growth in volume International clientele continues to grow: ~+4% / year (French ~0% / year); 40% of CDA’s clientele is from abroad CDA: strong commercial cooperati
Slide 19: Domaines skiables: maîtriser le modèle de consommation
Domaines skiables : « maîtriser » le modèle de 3 – The Growth model consommation Seven year trends (six resorts in the Savoie) 1 5 >4 B9 ; + , - $ $ % " - #+ , 4! ( ( ; + , - $ $ % " - , ; + C ; + Customer decisions : ( ; + -J K 5 9 ( $ - + , L $ 5 9 ; + 1 ( $ " - #+ , Convergence of Grand Massif an
Slide 20: Ski areas: growth leverage
Ski areas: growth leverage 3 – The Growth model Successful development of controlled intermediation through partnerships with main intermediaries. Skiing on the rise with the wider public: 2 H A - ! The RFID card (“hands-free”) opens the way to the creation of new products: 4 $ M $ $ % $ $ " $ ( - $
Slide 21: Ski areas: cost control
Ski areas: cost control 3 – The Growth model Operating costs , # C ( 6 - #+ <+ - * = - $ 8 $ $ " % ( - Personnel costs % " -$ " % $ ( - 21
Slide 22: 2006 Leisure Parks: Implementing transformation
2006 Leisure Parks: Implementing transformation 3 – The Growth model Major organizational changes = - ( $ F - $ " 8 4 ? 6 " $ 4 ! " " = - ! ' ( ( ! Integration of newly acquired parks ) ( " : $ : ( " ( $ Initial gains of the “scale effect” 8 $ ( ( 8 $ 6 & ( $ 22
Slide 23: 2007 Leisure parks: Income growth
2007 Leisure parks: Income growth 3 – The Growth model New commercial approach 1 ( ! - $ ( ! ( : = ( - - - 6 More tactical communications take advantage of the Group’s new dimensions: ' - - $ = ( Strong investments in store renovations continued 23
Slide 24: 2007 Leisure parks: Cost controls
2007 Leisure parks: Cost controls 3 – The Growth model Geographic bases = basic business unit (structural reductions by site) Progressive centralization & $ 5 $ - ( 9 8 $ - 24
Slide 25: 2007 Leisure parks: Enhancing our brands
2007 Leisure parks: Enhancing our brands 3 – The Growth model “Rewriting” Walibi '6 ' 4 " - - * ! '6 ( $ " $ ( A C ! ( ( ! ( Supporting the Astérix brand’s aspirations : ! $ 4 ? 6 $ > ( 4 ? 6 $ 2 & % = $ " Continuing co-production with Nickelodeon of the “Spetter le Dauphin” TV series in Holland Rei
Slide 26: Leisure parks: a unique organizational model in the industry
Leisure parks: a unique organizational model in the industry 3 – The Growth model The matrix model allows best practices to be communicated within the group A diversified portfolio gives us deeper understanding of the different segments: B$ 4 4F B Performance convergence is inevitable: the power of
Slide 27: Leisure parks: strategically adding value to our assets
Leisure parks: strategically adding value to our assets 3 – The Growth model Balance investments between maintaining fixed assets and brand enhancement Move progressively: " ( ( " - ( $ $ 6 ( 4 - ' " ( $ - 27
Slide 28: Contents
1 – Compagnie des Alpes at December 15, 2006 2 – 2005 – 2006 Results 3 – Growth model for the two business lines 4 – Strategy and Outlook 28
Slide 29: 2007 Outlook Ski areas
2007 Outlook Ski areas 44 –– Strategy Strategy and and Outlook Outlook + 2,700 rental beds At 12/1/2006: occupancy rates of professional beds* 49.5% Identical to the situation at 12/1/2005 5/ + - ! " " ##+ -! N = O 9 2006 Season profile: P $ ; + 5= $ % D : 9 Q + " ; + : $ ; + 5 ! 9 Snowfall since De
Slide 30: Outlook for Leisure Parks
2007 Outlook for Leisure Parks 44 –– Strategy Strategy and and Outlook Outlook Integration of the 5 StarParks for the full year Repositioning of the Bioscope (investment of 8 million in 2007/2008) New offering at the Mer de Sable Dolphin project at Planète Sauvage Various commercial initiatives: 1 (
Slide 31: CDA's Strategy
CDA’s Strategy 44 –– Strategy Strategy and and Outlook Outlook Building a leisure Group in two complementary activities -— skiing and leisure parks—through acquisitions, protecting ourselves as much as possible against climate risk. Implementation of a “CDA management model” adapted to each activity
Slide 32: Acquisitions: a lever for growth
Acquisitions: a lever for growth 44 –– Strategy Strategy and and Outlook Outlook A successful track record Dynamics in both business lines The means to fulfill our ambitions 32
Slide 33: Sales: 14 years of sustained growth +23%/year
Sales 14 years of sustained growth +23%/year 44 –– Strategy Strategy and and Outlook Outlook (75% by acquisitions) En M Compound rate of growth since IPO: +12.5% 33
Slide 34: Attributable income: 14 years of sustained growth +18%/year
Attributable income 14 years of sustained growth: +18% /year 44 –– Strategy Strategy and and Outlook Outlook In million IFRS French accounting standards Compound rate of growth since IPO: +15% 34
Slide 35: Making use of synergies
Making use of synergies 44 –– Strategy Strategy and and Outlook Outlook Organizational actions: 2 business lines, a single headquarters = C 4 & ?! R = $ F ( = -- - $ " 5 6 - (9 Revenue actions: = ( " P " 1 $S 4 ,7 8 ( L4 F ,& : - C - F $ $ & Cost actions: ' + ! ( 5 . , 9 # ( =C4 & 0 . ! ( $ " ( - 35
Slide 36: CDA is a major actor in the Europe-wide consolidation
CDA is a major actor in the Europe-wide consolidation of our two business lines 44 –– Strategy Strategy and and Outlook Outlook As a reminder: CDA generates 24 million visits / days per year Ski resorts: 5= $ 6 9 4 F - 3 $ ( Leisure parks: 4 F - 6 ( 5 6 9 ! - 36
Slide 37: The means to meet our ambitions
The means to meet our ambitions 44 –– Strategy Strategy and and Outlook Outlook 26.9 million in free cash flow in 2005-2006 Debt ratios at 9/30/2006 C " , F C " ,' ) BC 4 Payment for acquisitions in cash and equity Partnerships with investment funds 37
Slide 38: Medium term goals
Medium term goals 44 –– Strategy Strategy and and Outlook Outlook Balanced sales growth in the two business lines (10% to 15% including 5% organic growth EBITDA: ~28% to 30% of sales Operating income: ~18% to 20% of sales Increase free cash flow Debt / Equity : ~1 (normative) Payout: 35% to 40% of a
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Compagnie des Alpes — FY2005-2006 Earnings Presentation on 6ix