Pierre Et Vacances Sa · EURONEXT:VAC
Pierre Et Vacances Sa — Pierre & Vacances — FY2002/2003 Earnings Presentation
31 slides from Pierre Et Vacances Sa's earnings presentation, Dec 11, 2003
Slide 1: Presentation of Results for the 2002/2003 Financial Year
PRESENTATION OF RESULTS FOR THE 2002/2003 FINANCIAL YEAR Paris, December 11th 2003
Slide 2: Contents
Contents I - The Pierre & Vacances Group II - Results for the 2002/2003 financial year III - Our challenges in 2003/2004 2 - December 11th 2003
Slide 3: I - The Pierre & Vacances Group
I - THE PIERRE & VACANCES GROUP
Slide 4: Pierre & Vacances: a major player in the European tourist industry
Pierre & Vacances: a major player in the European tourist industry Two main products: residences (57%) & villages (43%) 4 segmented brands: Pierre & Vacances, Maeva, MGM, Center Parcs Key figures: – 45,000 apartments & houses in Europe (34,400 in France) – 205,000 beds (including 154,000 in Fr
Slide 5: II - Results for the 2002/2003 Financial Year
II – RESULTS FOR THE 2002/2003 FINANCIAL YEAR Period from October 1st 2002 to September 30th 2003
Slide 6: 16% growth in Group turnover on a like-for-like basis
16% growth in Group turnover on a like-for-like basis 881.5 In € million 757.4 +16.4% 692.9 686.8 188.6 6 70.6 - December 11th 2003 2001/2002 2002/2003 Property Development Tourism
Slide 7: Tourism: 0.9% increase in turnover
Tourism: 0.9% increase in turnover (on a like-for-like basis) In € million 686.8 692.9 +0.9% 255.0 261.7 431.8 431.2 7 - December 11th 2003 2001/2002 2002/2003 Pierre&Vacances/Maeva/MGM 50% Center Parcs
Slide 8: Tourism: 4% increase in net average letting rates
Tourism: 4% increase in net average letting rates on a like-for-like basis 2002/2003 2001/2002 Change Net average letting rates (*) 498 480 +4.0% (in €) Weeks sold 828 101 845 124 -2.0% Weeks offered 1 347 465 1 331 123 +1.2% 8 Occupancy rate 67.9% 70.2% -3.2% - December 11th 2003 (*) Average price
Slide 9: Tourism: sustained level of activity despite an unfavourable economic environment
Tourism: sustained level of activity despite an unfavourable economic environment Accommodation turnover on a like-for-like basis PV/Maeva/MGM: up +1.2% – Increase in net average letting rates: +4.0% – Slight drop in number of weeks sold: -2.7% (conflict in Iraq, Prestige oil slick, forest fires i
Slide 10: Property Development: 1,607 new & renovated apartments
Property Development: 1,607 new & renovated apartments 2002/2003 2001/2002 No. of apartments No. of apartments New 809 491 Val d'Europe (Paris) 286 Saint Lary 82 Bourgenay 77 Monflanquin 71 Ax les Thermes 70 Marciac 70 Valmeinier 68 Le Guilvinec 62 Ciboure 12 Other 11 Renovated 798 77 Cannes Beach 3
Slide 11: Operating income: +12.7%
Operating income: +12.7% In € million 82.5 73.2 Operating margin: 9.4% Operating margin: 9.2% +12.7% 39.3 37.3 (70%) (56%) 29.0 30.9 11 ‘(44%) 14.2 (30%) 5.0 - 01/02 02/03 December 11th 2003 Property Development Tourism in France 50% Center Parcs
Slide 12: Net income before extraordinary items: +26%
Net income before extraordinary items: +26% In € million 2002/2003 2001/2002 Change Turnover 881.5 794.7 +10.9% Operating income 82.5 73.2 +12.7% Net financial income -13.5 -15.4 -12.3% Amortisation of goodwill -6.4 -6.3 +1.6% Corporate income tax -22.5 -19.6 +14.8% 12 Net income before extraordinar
Slide 13: Statement of cash flows
Statement of cash flows In € million 2002/2003 2001/2002 Operating cash flow excluding WCR 89.9 60.1 Change in working capital requirement -19.4 26.8 Cash flows provided by operating activities 70.5 86.9 Cash flow used in investment activities -284.1 -4.1 Capital increase 0.3 55.9 Dividends paid -9.
Slide 14: A well-balanced financial structure (pre-Eemhof S&LB)
A well-balanced financial structure (pre-Eemhof S&LB) In € million Gearing: 1.15 Goodwill 227 Shareholders' 259 Equity JV 161 Net Fixed 14 Assets 298 Net Debt 148 - December 11th 2003 WCR 21 Assets Liabilities
Slide 15: A well-balanced financial structure (post-Eemhof S&LB)
A well-balanced financial structure (post-Eemhof S&LB) In € million Gearing: 0.82 Goodwill 227 266 Shareholders' Equity JV 81 Net Fixed 15 Assets 148 218 Net Debt - WCR 28 December 11th 2003 Assets Liabilities
Slide 16: Proposed payment
Proposed payment Proposed payment (without tax credit): €1.50 per share for a total amount of €12.8 million 16 - December 11th 2003
Slide 17: Shareholder ownership structure
Shareholder ownership structure (*) Total number of shares: 8,544,850 40.19% 51.54% 3.49% 17 4.00% 0.78% - December 11th 2003 Holding G. Brémond Employees Bolloré SA CDC IXIS Float (*) As at December 11th 2003
Slide 18: III - Our Challenges in 2003/2004
III – OUR CHALLENGES IN 2003/2004
Slide 19: Our challenges in 2003/2004
Our challenges in 2003/2004 A - Improve the Group's operating performances B - Harness new opportunities linked to the full integration of Center Parcs Continental Europe C - Pursue our development strategy 19 - December 11th 2003
Slide 20: Improve operating performances: optimise management of Tourism business
A – Improve the Group's operating performances 1 – Optimise the management of our Tourism business Sales initiatives in line with the Group's business strategy – Develop direct sales – Step up promotion and sale of short-stay holidays – Implement a customer-contact marketing strategy (sites, bouti
Slide 21: Improve operating performances: revenue growth
A – Improve the Group's operating performances 2 – Revenue growth based on: – Maximising average letting rates during peak season (price hikes, reduction in works council and group discounts, …) – Increasing occupancy on start & end of seasons (short stays, special promotions, development of works c
Slide 22: Improve operating performances: cost-cutting policy
A – Improve the Group's operating performances 3 – Continued implementation of cost-cutting policy Site costs: – Renegotiation of prices with suppliers (energy, laundry, housekeeping, maintenance, catering, …) Head-office costs: – Optimisation of purchasing (administrative, 22 communication & ma
Slide 23: Harness opportunities from Center Parcs integration: Group synergies
B – Harness new opportunities linked to the full integration of Center Parcs Continental Europe 1 – Develop strong synergies within the Group Sales synergies: – Sharing of customer files (cross-marketing) – Study to develop a common sales application in the Netherlands, Germany and Belgium (cross-
Slide 24: Develop the Center Parcs villages: Ailette
B – Harness new opportunities linked to the full integration of Center Parcs Continental Europe 2 – Develop the Center Parcs villages Developments under way – Center Parcs site in Ailette (Picardy), delivery planned for end-2006 – 700 cottages, accommodation capacity for 3,000 people, 1,850 m2 swi
Slide 25: Develop the Center Parcs villages: Germany and other projects
B – Harness new opportunities linked to the full integration of Center Parcs Continental Europe 2 – Develop the Center Parcs villages – Project to take over management of a new village in Germany • 420 cottages • Investment of €16 million financed by sale and lease back • EBITDA of €3.0 million on t
Slide 26: Acceleration of organic growth in France
C – Pursue our development strategy 1 – Acceleration of organic growth in France Sustained growth in activity in 2003/2004 – New property: • Winter deliveries: Isola 2000 • Spring/summer deliveries: – Port Bourgenay, Biscarosse, Saint-Jean Pied de Port, Montflanquin, Jonzac, Loches 26 – Renovation
Slide 27: Favourable changes in tax incentives
C – Pursue our development strategy 1 – Acceleration of organic growth in France Favourable changes in terms of tax incentives – New property: tax credit raised from 15% to 25% with ceiling raised from €92,000 to €100,000 – Renovation: 20% tax credit with ceiling of €100,000 27 - December 11th 200
Slide 28: Development strategy: Southern Europe
C – Pursue our development strategy 2 – Southern Europe In Spain: – Property development projects, properties currently being sold – Takeover of management of residences under development or existing residences (Marbella, …) – Study the development of city residences (Barcelona…) In Italy: 28 –
Slide 29: New development axes
C – Pursue our development strategy 3 - New development axes Continue to implement selective acquisitions policy Reinforce presence on city residence segment – Front de Seine tower (400 apartments), delivery in 2006 – Boulogne Billancourt (75 apartments), delivery in 2006 – Place de Clichy (80 a
Slide 30: Conclusion: net income growth target for 2003/2004
Conclusion: net income before extraordinary items growth target for 2003/2004: +25% Net income before extraordinary items: target of €50 million for 2003/2004 30 - December 11th 2003
Slide 31: Presentation of Results for the 2002/2003 Financial Year
PRESENTATION OF RESULTS FOR THE 2002/2003 FINANCIAL YEAR Paris, December 11th 2003
Pierre & Vacances — FY2002/2003 Earnings Presentation on 6ix