Valamar Riviera D.d. · ZSE:RIVP
Valamar Riviera D.d — Investor Presentation (December 2014)
29 slides from Valamar Riviera D.d's investor presentation, Dec 17, 2014
Slide 1: Presentation to Investors Following the Listing of Shares on the Zagreb Stock Exchange
Presentation to Investors Following the Listing of Shares on the Official Market of the Zagreb Stock Exchange Zagreb, December 17, 2014 Listing agent: InterCapital Securities 0
Slide 2: Content
1. Introduction 2. Overview of Valamar Riviera 3. Market Overview 4. Financial Overview 5. Business Strategy 6. Valamar Riviera and the Zagreb Stock Exchange Content 1
Slide 3: 1. Introduction
1. Introduction Content 2
Slide 4: Presenters
Presenters Franz Lanschützer Ivana Budin Arhanić Marko Čižmek President of the Member of the Member of the Management Board Management Board Management Board, CFO 1. Introduction 3
Slide 5: Investment Proposition
Investment Proposition CROATIAN TOURISM VALAMAR RIVIERA 1 Attractive geographical One of the position on the Mediterranan largest tourism 6 companies and 2 first hotel brand 10% of the Sustainable in Croatia country's Travel industry growing globally dividend categorized Steady growth of arrivals in
Slide 6: Why ZSE's Official Market?
Why ZSE’s Official Market? Satisfying the needs of Improved access to funding for our shareholders future growth and development Leading Croatian hospitality company with Capital intensive sector over 3.000 of employees in peak season > 22.000 of shareholders and free-float of 57% Optimization o
Slide 7: 2. Overview of Valamar Riviera
2. Overview of Valamar Riviera Content 6
Slide 8: Aktieakapltal 1,500,000 Krooen peace poatanrpen tafe dasee and
Aktieakapltal 1,500,000 Krooen peace poatanrpen tafe dasee and ES upsseeseee satiety) alr ima des neces Revere Bitangrratioctell gemdih sew (yeseactesttsabat wastebes
Slide 9: History of Valamar Riviera
History of Valamar Riviera Founding of Founding of „Riviera za Riviera Hotels & Resorts named Riviera Poreč became Riviera Adria; Riviera Poreč – upravljanje hotelima d.o.o.” „Valamar Hotels & Resorts” – adding Krk and Rabac capacities. Dom 198 beds management company first Croatian hotel brand Hold
Slide 10: History of Valamar Riviera (cont'd)
History of Valamar Riviera (cont’d) Reverse merger process and incorporation of Valamar Riviera 1 Opening balance (June 2014) 2 Merger 3 Shareholder structure (10/2014) Valamar group Reverse vertical merger EPIC; 43% 55% Share swap ratios: Merger Valamar Adria holding 1:12,8 Riviera Adria: KORF
Slide 11: Mission, vision, brands and awards
Mission, vision, brands and awards Mission and Vision Brand Vision: Lasting memories, every day, Recognized Croatian hotel & camping for every guest! brands Mission: Be the first choice hospitality company on the Croatian Adriatic for travelers, partners, employees and investors Key Values Awa
Slide 12: Locations and Capacities
Locations and Capacities The most prominent tourist The biggest and most Globally recognized tourist region in Croatia (3.2m of populated island in Croatia destination (3.3m of tourists tourists p.a.) (0.6m of tourists p.a.) p.a. with 5%-10% annual Valamar’s destinations: Destination’s key
Slide 13: Revenues and EBITDA
Revenues and EBITDA Historical Revenue Trend EBITDA and EBITDA Margin Trend 2009 – 2013 CAGR: 9% 400 2009 – 2013 CAGR: 26% 40% 1.250 31% 28% 300 25% 30% 1.000 23% 200 16% 20% 750 100 10% 500 0 0% 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Continuous top line growth due to Additional EBITD
Slide 14: Management and Organizational Structure
Management and Organizational Structure Organizational Structure Supervisory Board Operating committees Audit Remuneration Management Board Investment Operations & Finance, Business Sales & Asset Human Technical Controlling & Development & Marketing Development Resources Services IT Corporate Affair
Slide 15: Investment Overview
Investment Overview Investment Cycle HRKm Total of HRK 2.4 bn 400 370 323 330 300 270 218 200 158 165 170 120 90 100 100 49 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Key Portfolio Investments in 2014 Investment Plan for 2015 (Total of HRK 370m) Valamar Dubrovnik In 2015 Valamar p
Slide 16: Expertise In Hotel Management
Expertise In Hotel Management Differentiation through quality of service, branding, sales & distribution Valamar Academy Sales & Marketing Motto: Talents today, managers tomorrow! Brand recognition Standardized program of education that Proactive distribution strategy favoring own combines b
Slide 17: SWOT Analysis
SWOT Analysis Strengths Weaknesses Top beach front locations in prominent High seasonality Croatian tourist destinations, − Low annual occupancy rates due to Proximity to key European markets and seasonal operation in most properties international airports − High exposure to adverse weather
Slide 18: 3. Market Overview
3. Market Overview Content 17
Slide 19: Main Indicators Of Croatian Tourism Market
Main Indicators Of Croatian Tourism Market Tourism Revenue Overnights Revenue (2013, EUR) EUR bn CAGR 09-14 = 3% 8,0 250 204 200 178 180 6,0 154 150 119 4,0 86 100 2,0 50 0,0 0 2008 2009 2010 2011 2012 2013 2014 E Turkey Italy France Spain Greece Croatia Unlike other sectors of the local economy,
Slide 20: Indicators Of Valamar's Destinations
Indicators Of Valamar’s Destinations Overview of Level and Growth of Overnight Stays in Valamar’s Regions million million million 23 Istria 13 Kvarner 7 Dubrovnik 0% 7% 22 5% 2% 13 6 9% 21 1% 20 12 5 2011 2012 2013 2011 2012 2013 2011 2012 2013 Historical and Forecasted Number of Tourist Arrivals in
Slide 21: 4. Financial Overview
4. Financial Overview Content 20
Slide 22: Key Financials
Key Financials Key P&L items Comparison With Peers (2013) Q1-Q3 Q1-Q3 CAGR HRK 2011 2012 2013 Valamar Domestic Sol 2013 2014 (11'-13') Riviera peers* Melia Sales 910 1.001 1.073 1.019 1.030 6% EBITDA 223 307 301 405 410 11% EBITDA margin 28% 36% 18% EBIT 34 85 74 236 257 30% Net income -17 84 192 30
Slide 23: Key Operational / Financial Performance Indicators
Key Operational / Financial Performance Indicators Revenue per Available Room - REVPAR (HRK) Units Sold (millions) 4% 3% 120.000 2,0 1,5 80.000 5% 4% 1% 5% 1,0 40.000 7% 4% 0,5 0 0,0 HOT+APT HOT+APT CAMPING TOTAL HOT+APT HOT+APT CAMPING TOTAL 4*/5* 2*/3* 4*/5* 2*/3* 2011 2012 2013 CAGR 2011 2012 201
Slide 24: Debt Profile
Debt Profile Net Debt (HRK mil.) Leverage Ratios Average cost of financing ≈ 2.7% 800 3,0 2,7 2,7 600 539 2,5 2,2 487 409 2,0 400 1,5 1,8 200 1,6 1,0 1,3 0 2012 2013 Q3 2014 LTM 2012 2013 3Q 2014 Net debt/EBITDA EBIT/Interest expense Most of debt pertains to long-term CBRD loans In 2014, Company
Slide 25: 5. Business Strategy
5. Business Strategy Content 24
Slide 26: Key Drivers Of Business Strategy And Long-term Goals
Key Drivers Of Business Strategy And Long-term Goals 1 2 3 Brand and Mission and Vision Portfolio structure and offering operational expertise Strategic Objectives 1 Continuous upgrade of portfolio assets and service standards through high CAPEX with 5-10 year return horizon 4 2 Develop destinations
Slide 27: 6. Valamar Riviera and the Zagreb Stock Exchange
6. Valamar Riviera and the Zagreb Stock Exchange Content 26
Slide 28: Valamar Riviera and the Zagreb Stock Exchange
Valamar Riviera and the Zagreb Stock Exchange Share Price Performance and Liquidity 200 RIVP Average daily turnover (HRKm)* CROBEX 10 160 MSCI FM Frontier Hrvatski telekom (HTRA) 1,17 +52,1% Valamar Riviera (RIVPRA) 1,07 +28,3% 120 Adris (ADRSPA/RA) 0,88 +8,9% Luka Ploče (LKPCRA) 0,45 Ledo (LEDORA)
Slide 29: Disclaimer
Disclaimer This presentation has been prepared, and approved for communication by Valamar Riviera d.d. („Company”). These materials and the oral presentation do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any
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