compagnie des alpes - la compagnie des alpes au 15 décembre 2008 - 1 presentation of results...

Compagnie des Alpes - La Compagnie des Alpes au 15 décembre 2008 - 1

Presentation of results 2007/2008 December 17, 2008

Compagnie des Alpes - Compagnie des Alpes at December 15, 2008 - 2

Contents

Compagnie des Alpes at December 15, 2008

Results of fiscal year 2007/2008

Review of 2008 and outlook for 2009

Strategic trends


CDA, the European leader in leisure production

Two business lines Ski areas (N°1 World): 60% of sales

Operates 17 ski areas, with a controlling interest in 11 13.7 million skier days in those 11 ski areas (17.3 million for all 17 ski areas) 3 countries: France, Switzerland, Italy

Leisure parks (N°4 Europe): 40% of sales 21 parks 9.5 million visitors Leader in 3 countries: France, the Netherlands, Belgium

A balanced model with growth prospects Diversification of risks

Wide geographic distribution of sites and customers Softening of weather uncertainties Business spread over the entire year

Added growth factors Annual sales growth over last 5 years: +10% for ski areas, +15 % for leisure parks CDA Group has the capacity to be a major player in the consolidation of its two business lines


2007/2008: CDA activity boasts strong growth

A record ski season

Favorable conditions: snow, staggered European school holidays Consolidation of a new, prestigious, and economically high-performance ski area: Val d’Isère Record visitor numbers: 13.7 million skier days (+6.8% like-for-like) Brisk climb in sales (+23.7% on a real basis, and +7.8% like-for-like)

Leisure parks continue to grow in a competitive market and difficult economic environment

Visitor numbers up thanks to a dynamic marketing policy 9.5 million visitors (+2.5% like-for-like)

Downside of this aggressive marketing policy: limited growth of spending per visitor of +1.3% Sales growth of +3.5% on a real basis and +4.7% like-for-like


2007/2008: Financial performances significantly up

EBITDA and EBIT growth of over 20%

Improved operating margins, which are approaching their target level (EBITDA/sales ~30%)

Very solid increase in Net Attributable Income: €36.2 million (+28.8%, and +17.1% like-for-like)

Continued Group progress in terms of free cash flow and debt optimization

Improving trend in profitability ratios

Compagnie des Alpes - Results of fiscal year 2007-2008 - 6

Contents


Results of fiscal year 2007/2008


Strategic trends


Ski area results

Effects of scope: controlling stake in Val d’Isère and FY consolidation of Saas Fee

Strong like-for-like sales growth of ski lifts (+ 8.7%); record visitor numbers (+6.8%) and daily revenues up 1.9%

Building rights sales down slightly (€-2 million) but a major contributor (EBITDA = €7.7 million vs. €8.3 million in 2007)

High operating margins: healthy activity + control of operating costs record profitability in ski business line

In € millions 2007/2008 Real

(1)

2006/2007 Real

(2)

Change

(1)/(2)

2006-2007 like-for-like

(3)

Change

(1)/(3)

Sales 344.3 278.2 + 23.7% 319.4 + 7.8%

EBITDAEBITDA/sales

128.537.3%

97.134.9%

+ 32.3% 112.935.3%

+13.8%

EBITEBIT/sales

75.922.1%

54.919.7%

+38.2% 62.519.6%

+21.4%


Leisure park results

EBITDA stable

Costs of Christmas product launch at Astérix and impact of initiatives aiming to enlarge distribution circuits (with gains coming over several FYs)

Exceptional charges for the disposal of PanoramaPark and a provision for legal dispute Excluding exceptional items, EBITDA growth and consistent EBITDA/sales margins in an intensely competitive

environment

Drop in operating income

Higher depreciation due to capital spending policy Exceptional charges of €2 million: provision for Pleasurewood goodwill loss and exceptional depreciation of

certain operating assets

The decline in EBIT can be attributed for the most part to nonrecurring items

In € millions 2007/2008 Real

(1)

2006/2007 Real

(2)

Change

(1)/(2)

2006-2007 like-for-like

(3)

Change

(1)/(3)

Sales 233.6 225.7 +3.5% 223.2 +4.7%

EBITDAEBITDA/sales

48.120.5%

48.621.5%

-1.2% 48.321.6%

-0.4%

EBITEBIT/sales

13.45.7%

17.87.8%

-24.7% 18.08.1%

-25.6%


Corporate results

Structural costs stable

Organization stable Lower volume of certain discretionary charges

In € millions 2007/2008 2006/2007 2005/2006

Sales 1.4 1.8 0.1

EBITDA -3.5 -3.6 -7.8

EBIT -4.2 -4.2 -8.4


Group results

Robust growth of operating income like-for-like Cost of debt higher on a real basis (Sofival operation) but lower like-for-like (reduction and

optimization of debt) Affiliates: entry into consolidation of SERMA, DSV, and DSR Net attributable income: +17.1% like-for-like

In € millions 2007/2008 Real 2006/2007 Real Change real 2006-2007 like-for-like

Change like-for-like

Sales 579.3 505.7 +14.6% 544.3 +6.4%

EBITDA (Exc. Gross Op.) EBITDA/sales

173.129.9%

142.128.1%

+21.8% 157.729.0%

+9.8%

EBIT (Op. income) EBIT/sales

85.114.7%

68.513.6%

+24.3% 76.314.0%

+11.5%

Net cost of debt -26.5 -23.2 +14.2% -29.2 -9.2%

Tax -22.4 -15.7 +42.7% -16.3 +37.4%

Affiliates 3.5 2.3 +52.2% 3.6

Net attributable income

36.2 28.1 +28.8% 30.9 +17.1%


Cash flow

Operating cash flow climbs: +18.3% to €128 million

Stable net capital expenditures at €91 million

Sharp increase in free cash flow (before change in debt and receivables on assets)

Free cash flow has grown significantly over the last four years

10894

14

128

91

37

0

20

40

60

80

100

120

140

2007 2008

Cash flow

CAPEX net

Free cash flow before changein debt and receivables onassets

€ millions


Debt and profitability

Net debt improving Reduction of debt like-for-like Continued actions to optimize WCR (€33 million added to debt reduction in two years) Lowered net debt / EBITDA ratio and stable gearing despite the Sofical acquisition costs Stable average interest rate at 4.38%

Group financing requirements secured Over 70% of medium-term and long-term debt matures in 2011 71% of debt is not exposed to interest rate risk

Profitability ratios for shareholders’ equity and capital employed are improving despite acquisitions

In € millions 2008 2007

Shareholders’ equity 564.3 487.3

Net debt 563.3 478.3

Net debt / shareholders’ equity 99.8% 98.2%

Net debt / EBITDA 3.25 3.36

ROE 7.4% 6.7%

ROCE (incl. goodwill) 5.3% 4.9%


Shareholder return

2007/2008: exceptional payout ratio of 2006/2007 maintained

Significantly higher return

Optional share-based payment proposed at the AGM

2008 2007 Change

Net earnings per share €2.12 €1.81 +17.1%

Dividend per share €1.0* €0.85 +17.7%

Total dividend €17.1 million €13.1 million +30.3%

Payout ratio 47.2% 46.6%

Share price at 9/30 €27.5 €36.0 -23.6%

Gross return on share price at 9/30

3.6% 2.4% +54%* Proposed at the AGM on March 19, 2009

Compagnie des Alpes - Review of 2008 and outlook for 2009 - 14

Contents


Results of fiscal year 2007-2008


Strategic trends


Ski areas: an excellent 2008 season

Sales from ski lifts: +8.7% like-for-like All sites improved Grand Massif: +16.1% Serre Chevalier: +13.4% 3 Vallées (Méribel, Menuires): +12.1% Paradiski: +7.3%

Return of volume growth: +6.8% (+866,000 skier days) like-for-like Rise in number of passes sold (activity): +5.2% Rise in average length of passes sold: +2.6% (3.67 days)

Rise in daily revenues/skier day: +1.9% to €24.9 Effect of the closing of the Vanoise Express: revenues per skier day down at Paradiski resorts: -

1.6% Continued recovery at Grand Massif (+4.2%) and Serre Chevalier (+7.6%)


Ski areas: A solid model

Loyal customers (incl. 40% foreign visitors)

Initiatives characterized by spending controls in 2008

Centralization of principal purchases (energy, equipment, replacement parts, fuel) Optimization of processes: all companies are QSE certified Implementation of synergies (best practices)

Adapting the economic model to the maturity of the market

Continued trend of lower capital spending: the level of capital spending as a function of value as perceived by customers, anticipated growth of accomodations capacity, and visitor numbers at resorts

New partnership to reduce maintenance and construction costs: 1st project at Val d’Isère in 2008 yielded savings of 20% on a six-seater chairlift

Three years 2003/2005 Three years 2006/2008

CAPEX / sales 24% 19%

CAPEX / cash flow 94% 74%


Outlook for 2009Ski areas« Holiski: an innovation that creates value both for the customer and for the Group»

Successfully tested at two sites in 2007-2008

Target: the 25% of skiers who spend more than eight days annually in major ski resorts

Objectives: develop loyalty among the targeted customers, increase their ski consumption, and offer them additional services

Principles

Multi-resort passes Hands-free: no payment at registers Ski à la carte No prepaid cards: debit at end of month Prices lower than day passes (-15% to -25% depending on dates) Modern approach to marketing: internet

Launch for the 2009 season at six resorts

Possible developments in 2009-2010


Outlook for 2009Ski areas

+4,400 new commercial beds: +2.6% vs.1,300 in 2007 (+0.7%)

Occupancy rates of commercial beds in CDA resorts

At 12/01/2008 = 51.2% 12/01/2007 = 53.2% Number of visits: -1.9% (total French network -3.4%) Source: COMETE, 66% of seasonal reservations The season will be impacted by the fact that Easter weekend comes in April this year (i.e. in H2 of

the CDA fiscal year) vs. March in 2008

Abundant snowfall since the end of November: the best possible conditions

Reopening of the Vanoise Express (positive effect on revenues / skier day)

Alpine world ski championships at Val d’Isère (February 3-15, 2009)

Compagnie des Alpes - Bilan 2008 et perspectives 2009 - 19

215,4

225,7

233,6

2006 pro forma 2007 real 2008 real

Leisure parks: steady growth

From 2005 to 2008, the activity growth of CDA leisure parks outpaced the market average

2006 2007 2008(e)

France +2.2% +2.2% +2.2%

Netherlands +3.2% +3.6% +3.5%

Germany +1.4% +2.7% +1.9%

Source: PWC Global Entertainment Outlook 2007-2011

+ 4.8 %

+ 3.5 % (real)

+ 4.7 % (like-for-like)

Sales growth of CDA leisure park activity

Value growth of European leisure park market


Leisure parksLively business in 2008

2008: a year of active marketing

+400,000 prepaid tickets (+12% vs. 2007), 45,000 multi-park passes sold A radical price policy in Belgium (Aqualibi) At the height of the season: crisis of purchasing power and commercial attacks by competitors

business volume was supported by a dynamic promotional policy

New distribution channels gaining momentum

Partnerships with La Poste Special operations: flash sales, gift boxes

Ancillary revenues softened the effects of the promotional policy on visitor spending: for example, Food and Beverage revenues +9%

Growth in visitor numbers (+2.5%) and sales (+4.7%), both thanks to a taste for innovative marketing


Leisure parks2008, a year of capital spending and major project launches

The revival of Parc Astérix:

Renovated dolphinarium (€1.7 million) Successful launch of the Défi de César (€12 million) Encouraging results from the inaugural Christmas season (+100,000 visitors)

The consistent performance of « off season » products:

Extension of the opening periods paid off: Parc Astérix +11% visitors (+36 days), Mer de Sable +13% visitors (+18 days)

The example of Halloween in Belgium and the Netherlands

The expansion of Bioscope:

Two important new additions (Mission Océan and the Labyrinthe Végétal) Strengthened partnership with the Ecomusée d’Alsace (shared sales platform) Bioscope/Ecomusée: eco-village partnership with Pierre & Vacances


Outlook 2009Leisure parks Heightened success of the All Saint’s Day 2008 period

At December 14, 2008

Visitor numbers: ~1.1 million visitors (+14%) Sales: ~€27 million including tax (+19%) Parc Astérix: ~210,000 visitors (+40%)

New additions

At Parc Astérix : Le Capitole: events area Over 150,000 visitors expected for the second Christmas, with a successful product offering:

Défi de César, Dolphinarium, magic show, more rides 20th anniversary as the 2009 season’s theme

March 1, 2009: grand opening at Planète Sauvage of France’s third dolphinarium

Café Grévin: work begins in October 2009

Compagnie des Alpes - Strategic trends - 23

Contents




Strategic trends


History of Compagnie des Alpes20 years of growth 1989 Innovative project launch: Caisse des Dépôts creates a structure for

operators in the ski area sector. Swift pace of acquisitions. 1994 World leader in ski areas.

IPO on Paris’ Second Marché (November 18). Continued acquisitions in ski activities.

2002 Diversification into leisure parks to boost growth and reduce risk related to a single-line business and to seasonality.

2004 Privatization of majority of CDA capital 2006 Consolidation of the leisure park branch with the acquisition of Walibi parks. 2007 New stage of external growth: four new ski areas, including Val d’Isère and

Avoriaz.

Steady and profitable growth: 75% from acquisitions, and 45% Steady and profitable growth: 75% from acquisitions, and 45% financed by equityfinanced by equity


Ski areasUncontested leadership CDA Group: n°1 in Europe and Worldwide in the operation of ski areas

Positioned in high-altitude resorts, the only strategy able to withstand unpredictable weather

A solid and stable business line: public service delegations and long-term concessions

Recognized operating know-how

A strong base of loyal customers

A leader position with high-quality assets and a business line with A leader position with high-quality assets and a business line with significant barriers to entrysignificant barriers to entry

Recurrent revenues and cash flowRecurrent revenues and cash flow


Ski areas:Adapting the economic model as needed Tested economic performances:

Unflagging organic growth for over 10 years High operating margins Capacity to integrate new sites

Stakes:

Adapt to changes in consumer behavior and to maturing markets Change the economic model to ensure its capacity to create value

Means:

Maximize sales and operating strategies by profiting from the network effect Stimulate dialogue among stakeholders by placing the customer at the center of attention

Develop a new approach to capital spending


Leisure parks:Strategic capital, rich in potential In the last five years, the CDA Group has become n°4 in the sector in Europe and has

acquired strong strategic positions in three countries.

10% of the French market in volume Leader in Belgium N°2 in the Netherlands

Strong brands (Astérix, Grévin, Walibi), whose pan-European reputations will provide future growth

Thorough knowledge of different segments: theme parks, tourist sites, animal parks, and aquariums, all of which provide numerous opportunities for future development

Recognized operating expertise


Leisure parks Industrial priority: maximize the medium-term value of brands and of sites showing the most potential

Priority given to internal growth through commercial innovation and product quality

Focus capital spending on the continuous improvement of leading leisure parks and on development of the most promising projects

Brand strategies

Exploit all potential for increased margins (costs, organization, ancillary revenues, etc.)


Conclusion: a mobile and recognized enterprise, fully focused on creating value over the medium-term Reaffirmed ambition: to become THE reference in European leisure production

An industrial strategy based on the optimization and adaptation of the economic model

Selectivity in capital spending and the choice of development projects Aggressive search for synergies across and within the Group’s business lines Stimulating customer innovation and of sales approach Organization more integrated for greater reactivity

Increased strategic mobility:

Dynamic management of asset portfolio (inflows/outflows) Alliances and industrial partnerships

An economic imperative: reducing debt

Immediate measures Maximizing free cash flow Disposal of peripheral assets


Contents




Strategic trends

Appendices


Sales

16 years of uninterrupted growth +22% per year, with 17% from acquisitions

579506

456375372378

232221207196187143131125

3784 108

Ski Ski + Parks


Net attributable income 16 years of steady growth: +15% per year

36,2

28,126,227,029,029,1

23,320,5

17,013,410,9

8,48,85,3 6,9 8,1

Ski Ski + Parks

Real

41.1

Like-for-like

Compagnie des Alpes - La Compagnie des Alpes au 15 décembre 2008 - 33

Presentation of results 2007/2008December 17, 2008

compagnie des alpes - la compagnie des alpes au 15 décembre 2008 - 1 presentation of results...

Documents