Compagnie Des Alpes Sa · EURONEXT:CDA
Compagnie Des Alpes Sa — FY2005 Earnings Presentation
32 slides from Compagnie Des Alpes Sa's earnings presentation, Dec 15, 2005
Slide 1: Earnings presentation 2004-2005
Earnings presentation 2004 - 2005 October 1, 2004 – September 30, 2005
Slide 2: Agenda
1 - Compagnie des Alpes on December 15, 2005 2 - Earnings in 2004 – 2005 3 – Prospects for 2006 4 - Strategy
Slide 3: Agenda: Earnings in 2004-2005
1 - Compagnie des Alpes on December 15, 2005 2 - Earnings in 2004 – 2005 3 - Prospects for 2006 4 - Strategy
Slide 4: Compagnie des Alpes: A European leader in leisure away from home
Compagnie des Alpes A European leader in leisure “away from home” Two business lines f Ski areas (Number 1 worldwide) 14 ski areas Three countries: France, Switzerland, Italy 14 million skier-days f Leisure parks (Number 4 in Europe) 15 parks Five countries: France, the Netherlands, Germany, Switzer
Slide 5: Agenda
1 - Compagnie des Alpes on December 15, 2005 2 – Earnings in 2004 – 2005 3 – Prospects for 2006 4 - Strategy
Slide 6: Key facts and figures
2 – Earnings in 2004 - 2005 Key facts and figures f Sales grew by 0.8% Ski-area sales remained stable after two exceptional seasons* A good year for land sales A very unfavorable holiday schedule for both business lines (visits down by 523,000 in April) Fiscal year ends with an excellent fourth quar
Slide 7: Uneven results over the year
2 – Earnings in 2004 - 2005 Uneven results over the year Visitors In skier days and visitors to 2005 vs. 2004 leisure parks Q1 (Oct. – Dec.) - 300,000 Q2 (Jan. – March) + 315,000 Q3 (April – June) - 519,000 Q4 (July – Sept.) + 135,000 f April was a loss-maker: visits and skier-days down by 523,000 f
Slide 8: Analysis of ski-area receipts
2 – Earnings in 2004 - 2005 Analysis of ski-area receipts On a like-for-like basis (1) f Receipts €236.0 m stable vs. 2004 f Number of skier-days 10.2 million (down by 3.4% (volume) or 356,000 skier- days) f Receipts per skier-day €23.15 (up by 3.4% (price) or €0.80 per day) (1) Tignes, Les Arcs, La
Slide 9: Analysis of leisure-parks receipts
2 –Earnings in 2004 - 2005 Analysis of leisure-parks receipts on a like-for-like basis (1) f Receipts €136.1 m (up 1.8%) f Number of visitors 5.6 million (down by 0.2% or 13,000 visitors) f Receipts per visitor * €24.2 (up by 2.0% or €0.50 per visitor) * Entry fees: 67% - other on-site spending: 33%
Slide 10: Sales trends
2 – Earnings in 2004 - 2005 Sales trends Sales in FY 2003 – 2004 €372.3 m + Organic growth at ski areas +3.1 - Sales at Chamonix (now an equity affiliate) -8.2 - Sales at Courmayeur (now an equity affiliate) -9.5 + Sales at Serre Chevalier 1350 (fully +7.5 consolidated) Total change in sales, Ski Ar
Slide 11: Gross Operating Profit (EBITDA)
2 – Earnings in 2004 - 2005 Gross Operating Profit (EBITDA) In € m 2005 % of 2004 % of Change sales sales Ski Areas 78.6 33.0% 81.4 33.2% -2.8 Leisure Parks 28.5 20.9% 27.2 21.4% +1.3 Other -1.9 ns -2.6 ns +0.7 Total 105.2 27.9% 106.0 28.5% -0.8 f Ski areas: EBITDA virtually stable Expenses grew by
Slide 12: Margin on net income: 7.2% of sales
2 – Earnings in 2004 - 2005 Margin on net income: 7.2% of sales In € m 2005 2004 Change Operating income (EBIT) 62.7 65.2 -2.5 Net financial income -9.4 -10.2 +0.8 Income tax -18.8 -18.0 -0.8 Net income on equity affiliates 1.2 1.2 - Goodwill amortization -4.5 -4.5 - Minority interests -4.2 -4.7 +0.
Slide 13: Cash flow and balance sheet
2 – Earnings in 2004 - 2005 Cash flow and balance sheet In € m 2005 2004 Cash flow 83.0 74.6 Net capital expenditures -82.2 -74.4 Net investment -13.9 8,5 Net debt / equity 78.8% 75.2% f Cash flow up 11.3% f Capital expenditures (CAPEX): Ski areas: €55 m (23% of sales), o/w €12m at Serre Chevalier 1
Slide 14: Accounts adapted to IFRS: Limited effects, as expected
2 – Earnings in 2004 - 2005 Accounts adapted to IFRS: Limited effects, as expected In € m French IAS / IFRS Difference standards in 2005 Sales 375.3 374.2 -1.1 Net operating income 62.7 61.0 -1.7 Cost of net debt -9.4 -10.8 -1.4 Net income of consolidated companies 34.5 33.8 -0.7 Goodwill amortizati
Slide 15: Agenda: Prospects for 2006
1 - Compagnie des Alpes on December 15, 2005 2 – Earnings in 2004 – 2005 3 – Prospects for 2006 4 - Strategy
Slide 16: Prospects for 2006: Ski areas
3 – Prospects for 2006 Prospects for 2006 Ski areas f 4,800 additional beds (o/w 1,200 at Peisey*) f Commercial lodgings as of 12/1/2005 Occupancy rate: 49.5% (vs. 50.9% on 12/1/2004) 2004-2005 season: 62% occupancy rate as of 5/8/2005 Number of visits up 0.4% thanks to increase in available lodging
Slide 17: Prospects for 2006: Acquisitions in ski areas
3 – Prospects for 2006 Prospects for 2006 Acquisitions in ski areas f In 2004 / 2005: Serre Chevalier 1350 (100% interest) (360,000 skier-days) Riederalp Aletsch (20% interest) (216,000 skier-days) f In 2005 / 2006: Capital increase at Saas Fee Bergbahnen: CDA stake grows from 38% to 41% Negotiation
Slide 18: Leisure parks: a recap of 2005
3 – Prospects for 2006 Leisure parks: a recap of 2005 f A new growth strategy Organization on a geographic basis New operating procedures; a new operating team A development plan for each site f Cost-cutting begins A firmer grip on current operating expenses Introduction of centralized purchasing De
Slide 19: Prospects for 2006: Leisure parks
3 – Prospects for 2006 Prospects for 2006 Leisure parks f Effects of the holiday schedule in 2005: Sales down by € 2 m 80,000 less visits (at an average of € 24 each) f 2006 holiday schedule: Easter weekend on April 15-17; parks open (closed in 2005) May 1 and May 8 holidays fall on Mondays Whitmond
Slide 20: Prospects for 2006: Leisure parks
3 – Prospects for 2006 Prospects for 2006 Leisure parks Consolidation of acquisitions made in 2004 / 2005: f Planète Sauvage (50.4% interest) 178,000 visitors, Sales of €2.3 m (beginning end April) Planned sea animals attraction, with dolphins f Mer de Sable (100% interest): A well-known attraction
Slide 21: Prospects for 2006: Leisure parks
3 – Prospects for 2006 Prospects for 2006 Leisure parks f Parc Astérix: New attraction, “The Vikings” f Dolfinarium: Will be running at fully capacity f Grévin: Renovation of the “Palais des Mirages” f Bioscope: To open on June 1st 2006 December 15, 2005 21
Slide 22: A strategy for the leisure parks
3 – Prospects for 2006 A strategy for the leisure parks f Make each park a welcoming, pleasant and fully safe space, where we can offer innovative, high-quality family leisure activities, designed for the world of today and constantly updated. f Beginning in 2006: Rotate attractions among the park
Slide 23: A strategy for the leisure parks: Parc Astérix
3 – Prospects for 2006 A strategy for the leisure parks The example of Parc Astérix f Give the park a new vigor through an ambitious capital expenditures (CAPEX) program that takes full advantage of the Parc Astérix trademark: 2006 Æ Astérix and the Vikings 2007 Æ New attraction 2008 Æ Astérix
Slide 24: Agenda: Strategy
1 - Compagnie des Alpes on December 15 2005 2 – Earnings in 2004 – 2005 3 – Prospects for 2006 4 - Strategy
Slide 25: Strategy
4 – Strategy Strategy f The leisure parks as a hedge against risks in the ski areas business f A bigger war chest for acquisitions f More synergies among group activities December 15, 2005 25
Slide 26: Hedging risks
4 – Strategy Hedging risks FY 2004 - 2005 In € m 1st half 2nd half Full year SKI PARKS SKI PARKS SKI PARKS Sales 203.0 14.4 35.1 122.3 238.1 136.7 Operating income +8.7 -31.3 -31.0 +42.4 53.7 11.1 (EBIT) +53.4 +11.4 +64.8 * f The parks make a positive contribution: 18% of EBIT in 2004/2005 f The par
Slide 27: Greater growth potential
4 – Strategy Greater growth potential f In the last ten years, acquisitions have provided 2/3 of the CDA Group’s total growth. f Grévin & Cie, and the four new parks acquired since 2002 make up 80% of acquisitions in the same period f In the last seven years, CDA has acquired only one new ski area,
Slide 28: Reinforced synergies
4 – Strategy Reinforced synergies f Synergies for cost-cutting: Electricity: savings of 12%, or €1.2 m, in 2005 Financing: €260 m in debt refinanced, at an average annual interest rate of less than 3% as of 9/ 30/2005 Insurance: € 1 m per year saved through a CDA group contract Centralization of pur
Slide 29: Conclusions
4 – Strategy Conclusions f CDA marked time in 2005 for the first time in ten years, but the drop in net income was limited to 7% f But earnings were firm, with margin on net income at 7.2% f Two complementary business lines A reduction of the risk inherent in a single seasonal business More acquisit
Slide 30: Appendices: Group sites
APPENDICES Group sites December 15, 2005 30
Slide 31: Balance sheet as of 9/30/2005, applying IFRS
APPENDICES Compagnie des Alpes’ balance sheet as of 9/30/2005, applying IFRS In € m French IAS / IFRS Difference standards Non-current assets 705.4 704.1 -1.1 o/w Goodwill 90.2 97.4 +7.2 PP&E 507.4 495.4 -11.5 Non-current financial assets 14.0 5.9 +8.1 Deferred taxes - 8.7 +8.7 Current assets 90.2 9
Slide 32: Operating income
APPENDICES Operating income In € m 2005 % of 2004 % of Change sales sales Ski areas 53.7 22.6% 56.8 23.2% -3.1 Leisure parks 11.1 8.1% 9.6 7.6% +1,5 Other -2.1 ns -1.2 ns -0.9 Total 62.7 16.7% 65.2 17.5% -2.5 f Hence, also a decline in EBITDA f 2004: capital gain on sale of ski shops of €1.9 m Decem