Compagnie Des Alpes Sa · EURONEXT:CDA
Compagnie Des Alpes Sa — FY2020/21 Earnings Presentation
47 slides from Compagnie Des Alpes Sa's earnings presentation, Dec 7, 2021
Slide 1: 2020/2021 Annual Results
2020/2021 ANNUAL RESULTS DECEMBER 7, 2021
Slide 2: Important Information
I M P O R TA N T I N F O R M AT I O N This document contains forward-looking statements concerning the prospects and growth strategies of Compagnie des Alpes and its subsidiaries (the “Group”). These statements include indicators pertaining to the Group's intentions, strategies, growth outlook and o
Slide 3: Executive Leadership
EXECUTIVE LEADERSHIP Dominique THILLAUD Loïc BONHOURE CEO Deputy CEO ▪ CEO of CDA since June 2021 (Deputy CEO since March 2021) ▪ Deputy CEO of CDA since June 2021. ▪ Previous Experience: Previously Adjunct Deputy CEO and Head of Strategy, o Aéroports de la Côte d’Azur (2012-2020) – Chairman of the
Slide 4: Outline
OU TLIN E 1. A CLOSER LOOK AY FY 2020/2021 AND KEY INDICATORS 2. OPERATING AND FINANCIAL PERFORMANCES 3. STRATEGIC ROADMAP 4. OUTLOOK AND CONCLUSION 4
Slide 5: A Closer Look at Financial Year 2020/2021 and Key Indicators
1 – A CLOSER LOOK AT FINANCIAL YEAR 2020/2021 AND KEY INDICATORS
Slide 6: After Long Closures, the Rebound Expected in Summer 2021 Did Happen
AFTER LONG CLOSURES, THE REBOUND EXPECTED IN THE SUMMER OF 2021 DID INDEED HAPPEN 2020/21 2020/21 Summer 2021 Until 2019 STEADY GROWTH A MARKETWIDE CRISIS ONGOING MANAGEMENT OF ROBUST RECOVERY OF THE CRISIS ACTIVITY ✓ For Ski Areas, the 2019/20 ✓ Ongoing adaptation to health ✓ In the Leisure Parks,
Slide 7: The Drop in Sales Over Two Years Represented Lost Revenue of €800 Million
THE DROP IN SALES OVER TWO YEARS REPRESENTED LOST REVENUE OF €800 MILLION 2018/19 (1) (2) 2019/20 (1) (2) 2020/21 (1) (2) In €M In €M In €M CA 2018/19 (hors 2 Alpes) 2019/20 Sales (ex-2 Alpes) 232 2020/21 Sales (ex-2 Alpes) Lost revenue vs. 2018/19 Lost revenue vs. 2018/19 574 814 77 149 582 159 404
Slide 8: The Year's Financial Management Highlights
THE YEAR’S FINANCIAL MANAGEMENT HIGHLIGHTS Disciplined financial management and indemnities offset a significant portion of the steep decline in activity Operating expenses (ex-assistance) Bridge EBO 2019-2021 en M€ -574 223 189 14 58 71 220 Payroll Maintenance Marketing Energy & Licensing fees Tax
Slide 9: The Year's Operational Management Highlights
T H E Y E A R ’ S O P E R AT I O N A L M A N A G E M E N T H I G H L I G H T S Ski Areas → No winter ski season 1Q 2Q 3Q 4Q ▪ Some resorts were open for a few days ▪ Closed ▪ Closed ▪ Good summer season but little before forced closure at the end of ▪ Reopened in June for the summer impact on salles
Slide 10: 2020/2021 Key Figures: Sales and EBITDA
2020/2021 KEY FIGURES Sales: €241 M EBITDA (1): €71 M Net Attributable Income, Group: -€122 M In €M 854 In €M In €M 40 Sales 2 Alpes EBITDA 2 Alpes 232 Sales ex-2 Alpes EBITDA ex-2 Alpes 616 9 33 62 814 94 241 223 582 6 71 1 -104 -122 240 88 72 -1 2018/19 2019/20 2020/21 2018/19 2019/20 2020/21 (1)
Slide 11: 2020/2021 Key Figures: Net CAPEX, FCF, Net Debt
2020/2021 KEY FIGURES Net CAPEX: €143 M FCF (1): -€15 M Net financial debt (1): €664 M In €M Net CAPEX In €M Net debt ex-IFRS 16 Proceeds on sale of 2 Alpes In €M Lease liabilities IFRS 16 2018/19 2019/20 2020/21 825 -10 -15 177 664 92 162 209 175 143 -74 648 540 502 -51 2018/19 2019/20 2020/21 (1)
Slide 12: Operating and Financial Performances
2 – OPERATING AND FINANCIAL PERFORMANCES
Slide 13: Ski Areas: Operating Performances and Investments
SKI AREAS: OPERATING PERFORMANCES AND INVESTMENTS Impact of Covid-19: Only two sites were open for a few days in October. Then all sites remained unopened by government order. Skier Days and Sales were very significantly impacted by the closure Gradual reopening starting in June. of the ski resorts
Slide 14: Leisure Parks: Operating Performances and Investments
LEISURE PARKS: OPERATING PERFORMANCES AND INVESTMENTS Impact of Covid-19 : Sites were open for a few days in October and then closed until early May/early June, depending on the site (only Grévin Montréal was open as of February 26th and Chaplin’s World as Sales and Attendance of March 12th) - Affec
Slide 15: Holdings & Support: Operating Performances and Investments
HOLDINGS & SUPPORT: OPERATING PERFORMANCES AND INVESTMENTS This BU includes Travelfactory, some of CDA’s real estate businesses, and the consulting business carried by CDA Travelfactory and real estates businesses: equally affected by the health crisis Management Opex: - Reduced expenses related to
Slide 16: Income Statement (1/2)
INCOME STATEMENT (1/2) Opex: control of expenses In €M 2020/21 2019/20 - Compensated for 41% of revenue loss versus 2018/19 by lowering operating expenses Sales 240,6 615,6 Opex (including partial EBITDA: good level thanks to dynamic activity in 4Q of Leisure Parks and various -359,4 -521,8 unemploy
Slide 17: Income Statement (2/2)
INCOME STATEMENT (2/2) In €M 2020/21 2019/20 Net cost of debt increased, primarily due to: - The increase in average financing debt Operating Income -124,4 -105,9 - The one-off impact of extending the 1st PGE loan: €4.3 million - The increase in interest expense on lease liabilities: €1.1 million Ne
Slide 18: Active Cash and Liquidity Management Over the Past 2 Years
ACTIVE CASH AND LIQUIDITY MANAGEMENT OVER T H E PA S T 2 Y E A R S LIQUIDITY POSITION SECURED DURING THE HEALTH CRISIS ✓ Implementation of cost-saving plans and adjustments to investment plans ✓ Government support: assistance and compensation measures ✓ Implementation of new financing and adjustment
Slide 19: Changes in Cash Flow
CHANGES IN CASH FLOW in €M 2020/21 2019/20 Change in WCR - Traditionally limited at 09/30, given the seasonal nature of the business EBITDA 70,6 93,8 Change in WCR -3,3 +4,4 Net Industrial Investments, €143.4 million, slightly above the budget guidance of around €140 million Net Industrial Investmen
Slide 20: Net Debt
NET DEBT Net debt - Ex-IFRS 16 => reference for calculating bank covenant - After IFRS 16, net debt includes lease liabilities for €162.2 million in €M 30/09/2021 30/09/2020 Net Debt / EBITDA ex-IFRS 16: Net debt* 663,9 824,7 - Covenant holiday for test dates (09/30/2021 and 03/31/2022 - The substit
Slide 21: Debt Schedule
DEBT SCHEDULE The Group has sufficient liquidity to cover its short-term PGE Saison loan: Intention of needs reimbursing €139 million in December The Group has launched work on refinancing its loans and 2021 and extending the remaining €130 lines of credit maturing as of 2022/23 million over a two-y
Slide 22: Strategic Roadmap
3 – STRATEGIC ROADMAP
Slide 23: Overview of Our Priorities
OVERVIEW OF OUR PRIORITIES • Offer unique and immersive experiences for all seasons Dynamize site sales and appeal • Develop capacity and fluidity of customer experience • Use digital to reinforce distribution Communities Clients • Play a leading role in the diversification of mountain Deploy new re
Slide 24: Ski Area Strategy
S K I A R E A S T R AT E G Y 5 Diversify 4 mountain recreation Optimize in- activities 3 station Sustainably attendance 2 develop our Enrich the ski activities 1 offering and the customer Secure the experience activity over the long term 24 COMPAGNIE DES ALPES – 2020/2021 Annual Results – December 7
Slide 25: Secure the Activity for the Long Term
SECURE THE ACTIVITY FOR THE LONG TERM 1 Modeling of natural snowpack and snowmaking through the end of the century under +2°C and +4°C scenarios Model, understand, act Development of a 1986-2005 Median year 2041-2060 Median year under +2°C scenario decision assistance tool Applications: Deploy at al
Slide 26: Enrich the Ski Offer and Customer Experience: Les Arcs
ENRICH THE SKI OFFER AND CUSTOMER EXPERIENCE I L L U S T R AT I O N S - L E S A R C S 2 2 4 160 M€ invested in our 7 Projects in 2021/2022 ski resorts 6 over the course 1 4 Aiguille Rouge 4 of the last 2 years 5 (Phase 3 – 2021) ✓ Panoramic patio / relaxation space 55 M€ ✓ Zip line: 2,680 m, 1km des
Slide 27: Enrich the Ski Offering and Customer Experience: Illustrations
ENRICH THE SKI OFFERING AND CUSTOMER EXPERIENCE I L L U S T R AT I O N S - L E S A R C S 2 Zip line at L’Aiguille Rouge Panorama at Carreley Panoramic patio at L’Aiguille Rouge Mountain Animals Museum TC Vallandry – photovoltaic panels 27 COMPAGNIE DES ALPES – 2020/2021 Annual Results – December 7,
Slide 28: Sustainably Develop Our Activities: Pointe de la Masse
S U S TA I N A B LY D E V E L O P O U R A C T I V I T I E S I L L U S T R AT I O N - P O I N T E D E L A M A S S E 3 Restructuring of Pointe de La Masse New chairlifts: panoramic view Summit: 2,804m Objectives • Reduce the ecological impacts (visual, energy use) • Simplification of installation to i
Slide 29: Optimize In-Resort Attendance
O P T I M I Z E I N - R E S O R T AT T E N D A N C E 4 Develop new products & services • Ski à la Carte: access to 18 resorts, with • Improve customer knowledge to respond to their discounts of -10% to -40% expectations • Valorize CDA’s multi-site offer • Les Arcs: multi-activity pass • Digital at t
Slide 30: Diversify Mountain Recreational Activities
D I V E R S I F Y M O U N TA I N R E C R E AT I O N A L A C T I V I T I E S 5 New activities at each site Acquisition of expertise Deployment of global reflection • Adapt our offers to new trends • Propose a concerted and consistent Acquisition diversification plan Network of outdoor schools and act
Slide 31: Leisure Park Strategy
L E I S U R E PA R K S T R AT E G Y Accelerate the development of our Valorize human capital parks 5 Reinforce our customer knowledge 4 Accelerate internal 3 sales Offer unique and 2 immersive experiences for all seasons 1 31 COMPAGNIE DES ALPES – 2020/2021 Annual Results – December 7, 2021
Slide 32: Offer Unique and Immersive Experiences: Investments in Attractivity
OFFER UNIQUE AND IMMERSIVE EXPERIENCES I L L U S T R AT I O N S – I N V E S T M E N T S I N AT T R A C T I V I T Y 144 M€ Invested in our parks over the last 2 years New KONDAA Coaster Walibi Belgium New Zone • Mega-coaster Intamin • Final phase of Festival City, a new zone in the park • The highest
Slide 33: Make Our Parks Year-Round Destinations with Events – Halloween
MAKE OUR PARKS YEAR-ROUND DESTINATIONS WITH EVENTS – HALLOWEEN 1 Record attendance for the Halloween period, outpacing 2019/2020 A vital event for our parks: • Some 20 scare zones, 10 haunted houses • 8 original shows & numerous animations • Revamped restaurant offer 33 COMPAGNIE DES ALPES – 2020/20
Slide 34: Accelerate Internal Sales
ACCELERATE INTERNAL SALES 2 Intensify the development of our merchandizing services: restaurants and shopping Give back the gift of time to our guests Coming! Shop New shop New restaurant 34 New restaurant COMPAGNIE DES ALPES – 2020/2021 Annual Results – December 7, 2021
Slide 35: Digitalize Our Communications and Our Distribution
D I G I TA L I Z E O U R C O M M U N I C AT I O N S A N D OUR DISTRIBUTION 3 Accelerate the digital transformation for the benefit of our customers • Amplify the relational cycles with our guests and our prospects • Transform media communication plans into online strategies • Continuously optimize o
Slide 36: Valorize Human Capital
VA L O R I Z E H U M A N C A P I T A L 4 • Security, employability, and inclusion ✓ Accredited training ✓ 700 professional certifications ✓ 22 hours of training per FTE employee despite seasonality ✓ >5% work study in the group • Very Highly Satisfied Employees objective • Recommend my employer: 79%
Slide 37: Accelerate the Development of Our Parks: Futuroscope
A C C E L E R AT E T H E D E V E L O P M E N T O F O U R PA R K S FUTUROSCOPE 5 Signed a new lease (30-year term) Increased equity stake in Futuroscope in 2021 • CDA’s stake is now 80% Plan to reinforce the current Futuro 1 park: investment of €200 million carried by CDA over 10 years • Increase cap
Slide 38: Accelerate the Development of Our Parks: Bellewaerde
A C C E L E R AT E T H E D E V E L O P M E N T O F O U R PA R K S B E L L E WAE R D E 5 Increase capacity and raise qualitative positioning: from local park to reference park 3 new major attractions b 2030 with increased capacity Renovation and creation of restaurants and points of sale Ramped-up an
Slide 39: Grand Astérix Project: Capitalize on Success of the Hotel Strategy
G R A N D A S T É R I X P R O J E C T: C A P I T A L I Z E O N T H E S U C C E S S O F T H E H O T E L S T R AT E G Y 5 Complementary projects Enriched Capacity Creation of 150 rooms Extension - 108 4th hotel entertainment offer brought to 100 additional rooms and to 150 rooms a new restaurant Exten
Slide 40: Additional Levers of Company Performance
A D D I T I O N A L L E V E R S O F C O M PA N Y P E R F O R M A N C E Financial discipline illustrated during the crisis Pooled expertise in several areas to benefit the Group’s innovation CDA Développement Open resort services Reinforcement of commercial, marketing, and distribution synergies 40 C
Slide 41: A Committed Partner Working to Benefit Regions and Communities
A C O M M I T T E D PA R T N E R W O R K I N G T O B E N E F I T R E G I O N S A N D COMMUNITIES In our work relationships Pride in affiliation with Compagnie des Alpes Safety on the job Continuing education and youth employment efforts Exciting career paths and support for parity CDA scored 86/100
Slide 42: A Strong and Clear Environmental Policy: Ambitious Objectives
A STRONG AND CLEAR ENVIRONMENTAL POLICY: 3 AMBITIOUS OBJECTIVES 1. Carbon neutrality 2. Sustainable management of resources and 0 non-recycled waste • Low carbon snow groomer partnership: 1st 100% electric snow groomer for winter 2021/2022 • 1 water observatory in each Ski Area (2025) • 5 Leisure Pa
Slide 43: Outlook and Conclusion
4 – OUTLOOK AND CONCLUSION
Slide 44: Outlook
OUTLOOK NET INDUSTRIAL FINANCIAL SALES EBITDA DIVIDEND INVESTMENTS LEVERAGE (1) 2021/22 2021/22 2021/22 2021/22 2021/22 ✓ Record Halloween ✓ Activity could still be ✓ Increase in CAPEX budget ✓ Targeting a return in ✓ No distribution in respect activity impacted by the health limited because of the
Slide 45: Conclusion: A Major European Player Ready to Rebound
C O N C L U S I O N : A M A J O R E U R O P E A N P L AY E R I N M O U N TA I N R E C R E AT I O N A N D L E I S U R E I N D U S T R Y I S R E A D Y T O R E B O U N D The Group successfully navigated the crisis from a financial perspective and is in perfect working order operationally We experienced
Slide 46: Additional Information
ADDITIONAL INFORMATION
Slide 47: 2021/2022 Agenda
2021/2022 AGENDA 1Q Sales: Thursday, January 20, 2022, after stock market closes Annual Shareholders’ Meeting: Thursday, March 10, 2022, afternoon 2Q Sales: Thursday, April 21, 2022, after stock market closes 1H Results: Tuesday, May 24, 2022, after stock market closes 3Q Sales: Thursday, July 21, 2
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