Pierre & Vacances-Center Parcs: First-Half 2024/2025 Results (1 Octobre 2024 – 31 March 2025)

About this update from Pierre Et Vacances Sa

PARIS, May 28, 2025 --( BUSINESS WIRE )--Regulatory News: Pierre & Vacances-Center Parcs (Paris:VAC): This press release presents consolidated financial results established under IFRS accounting rules, closed by the Pierre et Vacances SA Board of Administration on 27 May 2025, the audit of which is currently being finalised by the Statutory Auditors. Franck Gervais, CEO of the Pierre & Vacances-Center Parcs Group, stated: "In a difficult market backdrop, the Pierre & Vacances-Center Parcs Group demonstrated its resilience enabled by an attractive positioning in local tourism and reflected in strong performances throughout the winter season. We continue to premiumise our accommodation and enhance our offer to provide high-quality experience-based holidays, implementing our customer-focused strategy with conviction and a strong commitment from our teams. After a first half performance hampered by calendar effects, buoyant reservation trends for the second half and strict cost management underpin our guidance to deliver a higher operating performance than last year, in line with our goal to generate lasting and profitable growth." I. Highlights of the period Further increase in customer satisfaction The Group’s strategy focused on improving customer experience, enhancing the offer and fostering a service culture, is paying off. All brands enjoyed an increase in customer satisfaction scores, with +4 points for Center Parcs, +4.5 points for Pierre & Vacances, +6 points for maeva and +1 point for Adagio. Renovation of Center Parcs Hauts de Bruyères in France Opened in 1993, the Domaine des Hauts de Bruyères completed its ambitious renovation programme aimed at improving customer experience. After closing totally in October and November, the Domain reopened on 2 December 2024. The Group and owner/lessors invested more than €65 million in the Domain’s 720 cottages and central facilities resulting in a premiumised and more experience-based offer. Development of the tourism offering Pierre & Vacances continued its strategic development with the opening during H1 of four residences in Spain, while new stocks were secured under asset-light arrangements in France and Southern Europe. Maeva.com also rounded out its network of seasonal rental agencies with the acquisition of five new agencies and won market share in the open-air hospitality sector with the signing of 17 new affiliated campsites. II.First-half 2024/2025 results according to operational reporting In order to reflect the operational reality of the Group's businesses and the readability of their performance, the Group's financial communication, in line with operational reporting as monitored by management, continues to include the results of joint ventures on a proportional basis and does not include the application of IFRS 16. Group results are also presented according to the following operational sectors 4 : - Center Parcs covering operation of the Domains marketed under the Center Parcs, Sunparks and Villages Nature brands, and the building/renovation activities for tourism assets. - Pierre & Vacances covering the tourism businesses operated in France and Spain under the Pierre & Vacances brand and the Asset Management business line 5 . - maeva.com , a distribution and services platform, operating the maeva.com, Campings maeva, maeva Home, La France du Nord au Sud and Vacansoleil. - Adagio , covering operation of the city residences leased by the Group and entrusted to the Adagio SAS joint venture under management mandates, as well as operation of the sites directly leased by the joint venture. - An operating segment covering the Major Projects 6 and Senioriales 7 business lines. - the Corporate operational segment housing primarily the holding company activities. The Group’s operational reporting is presented in Note 4 of the Appendix to the consolidated half-year financial statements. A reconciliation table with the primary financial statements is presented hereafter. 2.1. Consolidated revenue according to operational reporting Economic revenue - Tourism First half 2024/2025 revenue was negatively impacted by the timing of public holidays and school holidays, with certain periods falling in the third quarter this year, as well as by a decline in the accommodation offer, due especially to the complete closure of the Center Parcs Les Hauts de Bruyères Domain in October and November 2024 (renovation work on central facilities). After neutralising the shift in revenue to the month of April, the Group's accommodation revenue is estimated to have grown by 0.5% over the half-year period. Supplementary income 8 also increased (+3.8%), benefiting especially from robust business at maeva.com. The customer satisfaction rate continued to rise across all brands . Accommodation revenue Accommodation revenue amounted to €583.6 million in the first half of 2024/2025 , down 2.3% before adjusting for the shift in business to April, and up 0.5% compared with the first half of the previous financial year after neutralising the calendar effect. Note that the key indicators presented in the table below have not been adjusted for the impact of this shift in revenue to the following quarter and are therefore not comparable with the prior year performance. Change in key operational performance indicators Change in accommodation revenue by brand - Center Parcs: -4.0% (stable after neutralising the shift in revenue) The decline in accommodation revenue was mainly due to a volume effect (complete closure of the Domaine Les Hauts de Bruyères for two months, in line with the renovation programme, as well as the disadvantageous calendar effect). Average letting rates rose by 2.3% (+2.6% for the Domains located in BNG 9 and +2.0% for the French Domains), testifying to the Domains’ premiumisation. - Pierre & Vacances: +2.4% (+3.3% after neutralising the shift in revenue) - Adagio: -2.2% (-1.7% after neutralising the shift in revenue) The decline in revenue was primarily due to aparthotels in France (-3.9%), following a reduction in the offer (withdrawal from two sites) and disadvantageous comparison with the first half of the previous year, which benefited from the Rugby World Cup in October 2023. Revenue rose by 5.2% in other countries where the brand operates. Supplementary income 10 H1 2024/2025 supplementary income amounted to €176.6 million, up 3.8% on the first half of the previous financial year, driven by maeva.com (up 21.0% over the period), which confirmed its growth and demonstrated the strength of its hybrid model: a Europe-wide holiday distribution platform and a network of high-performance local seasonal rental agencies, particularly in the mountain regions. Economic revenue - Others H1 2024/2025 revenue from other businesses amounted to €41.9 million, down from €54.7 million in the first half of 2023/2024, confirming the Group's ongoing withdrawal from its real estate and non-strategic activities. Revenue from other businesses is primarily made up of: - Renovation operations at Center Parcs Domains on behalf of owner-lessors, for €18.7 million (mainly for the renovation of Les Hauts de Bruyères Domain in France and the extension of the Park Eifel Domain in Germany) compared with €15.9 million in H1 2023/2024. - Les Senioriales for €10.2 million (vs. €20.8 million in H1 2023/2024). - the Major Projects business line: €11.9 million of which €10.6 million related to the extension of the Villages Nature Paris Domain (vs. €17.4 million in H1 2023/ 2024, of which €15.7 million related to Villages Nature Paris). 2.2 Results according to operational reporting Adjusted EBITDA for the first half of 2024/2025 stood at -€40.3 million, vs. -€21.4 million in the first half of 2023/2024. Comparison of the tourism performances with those of the previous year was affected by: - A disadvantageous calendar effect, with a significant shift in revenue to the second half (estimated impact of around €15 million), and a less advantageous positioning of bank holiday and Easter school holiday dates. - The total closure of the Center Parcs Les Hauts de Bruyères Domain during October and November 2024 (renovation works and central facilities), and rehabilitation works at the Pierre & Vacances - Avoriaz l’Hermine residence (lost earnings of around €5 million in operating margin). - The recognition during H1 2023/2024 of non-recurring income of €10.9 million corresponding to additional German government aid for the Covid-19 pandemic. In contrast, H1 2024/2025 EBITDA benefited from an impairment write-back for property stocks at the Center Parcs Les Landes de Gascogne Domain for €12.1 million (beneficial change in interest rates and the property market). Net financial expenses totalled €8.2 million vs. €4.2 million in H1 2023/2024 (the figures are not comparable as the year-earlier period included non-recurring financial income). The cost of gross debt was lower in view of the refinancing of the Group’s debt undertaken in July 2024 (redemption of debt reinstated in 2022 and roll-out of a revolving credit facility). Other net operational expenses represented €13.2 million in H1 2024/2025 (vs. €14.9 million in H1 2023/2024), primarily including: - costs incurred (mainly fees and staff costs) under the framework of the Group’s transformation projects and the closure of certain sites for €5.3 million. - a €3.2 million impairment charge on receivables as part of the Group’s withdrawal from its activities in China. - a €2.6 million expense related to the booking under IFRS2 of bonus share allocation plans implemented at the same time as the Group’s restructuring operations. Tax expenses amounted to €6.2 million in H1 2024/2025, stemming primarily from a tax expense due in the Netherlands. The Group net loss stood at €102.0 million vs. €82.4 million in H1 2023/2024, affected by the disadvantageous calendar effect. 2.3. Balance sheet items and net financial debt according to operational reporting Simplified balance sheet Net financial debt The seasonal nature of the tourism businesses causes structural cash burn during the first half of the year. Gross financial debt on 31 March 2025 (€136.6 million) therefore corresponded mainly to: The amount of debt related to assets held under finance leases corresponds mainly to the adjustment for finance leases concerning the central facilities at the Center Parcs Le Lac d'Ailette Domain. Bank ratios The agreement governing the revolving credit facility put in place when the Group's debt was refinanced on 23 July 2024 requires compliance with four financial ratios: the first compares the Group's debt with adjusted EBITDA, the second compares the Group's debt plus five times the value of owner rents with adjusted EBITDAR 11 , the third verifies a minimum liquidity level and the last verifies a maximum capex per year. As of 31 March 2025, these covenants were respected. III. Outlook Guidance In view of tourism reservations to date for the second half of the year (representing 70% of the target, with 50% in Q4), the Group is currently expecting growth in its full-year performance with adjusted EBITDA set to exceed €180 million over the year, testifying to the Group’s resilience in a difficult geopolitical context. Extension of Villages Nature Paris The Center Parcs Villages Nature Paris Domain is extending its offer with 193 premium and VIP cottages (108 new VIP cottages open since 7 May and 85 Premium cottages delivered in early July). This is a key step in the Domain’s development and is part of Center Parcs’ premiumisation strategy aiming to enhance customer experience. New Center Parcs destination: Denmark Center Parcs is preparing to take a major step forward with the opening on 20 June 2025 of its 30th Domain, the Center Parcs Nordborg Resort, its very first site in Scandinavia. Located on the Als island, the Domain spans 190 hectares and offers 440 cottages integrated into natural surroundings with views over forest land or the Baltic Sea. After the Terhills Resort Center Parcs Domain in Belgium and the Parc Sandur Domain in the Netherlands, this will be the brand’s third Domain operated under a management mandate. IV. Appendix: Reconciliation table The Group’s financial communication is in line with operational reporting, which is more representative of the performances and economic reality of the contribution of each of the Group’s businesses i.e.: - excluding the impact of IFRS16 application for all financial statements. Indeed, in the Group’s internal financial reporting, rental expenses are recognised as an operating expense. In contrast, under IFRS 16, rental expenses are replaced by financial interest and the straight-line depreciation expense over the lease term of the right of use. The rental savings obtained from the lessors are not recognised in the income statement but are deducted from the value of the right of use and the rental obligation, thus reducing the depreciation and financial costs to be recognised over the remaining term of the leases. - with the presentation of joint undertakings according to the proportional consolidation method (i.e. excluding application of IFRS 11) for profit and loss items. The Group's operational reporting as monitored by management, in accordance with IFRS 8, is presented in Note 4 - Information by operating segment to the consolidated financial statements as at 31 March 2025. The reconciliation table with the primary financial statements are therefore set out below. Income statement Group revenue under IFRS accounting totalled €765.1 million, down 1.7% relative to the year-earlier period due to a disadvantageous calendar effect (shift of revenue to second half). The Group net loss amounted to €117.0 million. After EBITDA of €151.7 million, the figure included depreciation, amortisation and provisions expenses of €166.1 million and financial expenses of €97.1 million. Balance sheet The Group’s balance sheet under IFRS reflected the following:   View source version on businesswire.com: https://www.businesswire.com/news/home/20250527241098/en/ Contacts Investor Relations and Strategic Operations Emeline Lauté +33 (0) 1 58 21 54 76 [email protected] Press Relations Valérie Lauthier +33 (0) 1 58 21 54 61 [email protected]

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