Pierre et Vacances SA · EURONEXT:VAC
Pierre et Vacances SA — Pierre & Vacances-Center Parcs Group — FY2012/2013 Earnings Presentation
42 slides from Pierre et Vacances SA's earnings presentation, Dec 5, 2013
Slide 1: 2012-2013 Year End Results - WIN2016
2012 - 2013 YEAR END RESULTS WIN2016 December 5th 2013
Slide 2: Contents
CONTENTS I. INTRODUCTION II. 2012-2013 YEAR END RESULTS III. WIN2016: A PROFITABLE INNOVATION STRATEGY IV. CONCLUSION December 5th 2013 2
Slide 3: Introduction
INTRODUCTION 2012 – 2013 YEAR END RESULTS PRESENTATION 3
Slide 4: The European leader in local tourism
The European leader in local tourism A BUSINESS MODEL COMBINING REAL ESTATE DEVELOPMENT AND TOURISM Unique expertise and - The Group founded the tourism residence concept positioning - 300 sites, 49,000 homes and apartments and brands with good reputations N° 1 in Europe for local tourism WIN 2016:
Slide 5: 2012/2013 operating margin target delivered
2012/2013 operating margin target delivered Turnover: +0.8% Resilient turnover in tourism REVPAR:+2.3%* Growth A sharp increase in real estate €418m reservations, securing turnover for the future +22% Cost-cutting plan already implemented €25m Operating margins €8m** Rental savings in line with our
Slide 6: Strengthening our foundations in order to roll out our Group strategy
Strengthening our foundations in order to roll out our Group strategy A FOCUS ON PRODUCT/OFFER– GO TO MARKET – Q SERVICE - Digital skills, marketing, processes Strengthened operating - Group cross-European sales and marketing structure structure - HR and IT departments have been strengthened Operati
Slide 7: 2012-2013 Year End Results
2012-2013 YEAR END RESULTS 2012 – 2013 YEAR END RESULTS PRESENTATION 7
Slide 8: Turnover that testifies to the resilience of the Group's activities
Turnover that testifies to the resilience of the Group’s activities in difficult circumstances Good resistance in terms of tourism turnover Millions of euros TURNOVER GROWTH +0.8% (2) +0.8% 1 137.0 1 128.5 (1) • INCREASE IN NUMBER OF NIGHTS SOLD +0.4% 535,8 +0.5% 538,4 Growth in occupancy rates +2
Slide 9: Real estate reservations up 22%
Turnover that testifies to the resilience of the Group’s activities in difficult circumstances Real estate reservations up 22% Real estate development turnover Real estate reservations incl. tax Millions of euros Millions of euros +22% 418,3* *o/w 60% of sales to 311,5 private clients 343,7 (1,153 u
Slide 10: Underlying operating profits back in the black
Underlying operating profits back in the black Millions of euros 2011/12 2012/13 15,0 11,5 2,6 Tourism Property Development Group -12,4 -18,5 -7 - Delivery of our COST CUTTING PROGRAM announced: €25m over the period (€35m over the full- year) - RENTAL SAVINGS in line with forecasts: €8m*, WITH NO IM
Slide 11: Restructuring costs in preparation for the future
Restructuring costs in preparation for the future HANDOVERS/WITHDRAWALS at the end of A €25m COST-CUTTING PLAN over the year and the lease period set to generate an a further €10m for 2013/14 improvement in our underlying operating profits of €4m as of 2013/14 Management of the redundancy plan (195
Slide 12: Growth in underlying net profits
Growth in underlying net profits 2011/2012 2012/2013 Turnov er 1419,1 1 306,7 Tourism 1107,5 1 137,0 Real estate developm ent 311,5 169,7 Underlying Operating Profits -7,0 2,6 underlying operating m argin -0,5% 0,2% Financial expenses -18,3 -16,1 Taxes 2,6 -0,9 Underlying net profits -22,7 -14,4 * O
Slide 13: Cash pile temporarily affected by WCR in property development
Cash pile temporarily affected by WCR in property development Cash flow statement (Euro millions) Exceptional restructuring 2012/2013 costs Cash flow excluding exceptional items 22 Exceptional items -33 CAPEX -26 Asset disposals 13 Change in working capital requirements -42 Exceptionally high level
Slide 14: A robust balance sheet
A robust balance sheet Simplified balance sheet Leverage (Millions of euros) (Millions of euros) Net banking debt 173 Goodwill 156,4 Equity 404 Attributable Leverage 43% 403,7 equity Normal average net debt Net fixed 470,9 assets 173,5 Net banking debt Net banking debt 173 Rental commitments Cash in
Slide 15: Improvement in tourism operating margins in line with WIN 2016 targets
Improvement in tourism operating margins in line with the targets of the WIN 2016 plan Overview of the WIN2016 targets +0,5 pts +2,5 pts +5% +2 pts -2% +2 pts Operating Distribution Rents 2011/2012 Head office 2015/2016 margin costs underlying costs underlying operating operating margin 1 2 3 4 marg
Slide 16: Growth in tourism reservations to date
Growth in tourism reservations to date October vacation, Public Turnover growth for all coastal destinations (France, holidays of November 1st FWI and Spain) and 11th • Increase in reservations to date for the entire Winter season PVTE scope (sea, mountain, city) PIERRE & • Mountain focus: VACANCES
Slide 17: WIN2016: A Profitable Innovation Strategy
WIN2016: A PROFITABLE INNOVATION STRATEGY 2012/2013 YEAR END RESULTS PRESENTATION 17
Slide 18: WIN2016: our strategy
WIN2016: our strategy REAL ESTATE TOURISM DEVELOPMENT OPERATIONS 1. Innovative concepts 1. A family of brands valuing a range of offers meeting new 2. Diversified financing systems and customer expectations management methods 2. A continuous digital dialog for 3. A renewed partner relationship with
Slide 19: WIN2016 Tourism
WIN2016 TOURISM December 5th 2013 19
Slide 20: Three stages for our profitable growth strategy
WIN2016 – Tourism Three stages for our profitable growth strategy Strategy rolled out in three stages : INNOVATION New international models ACCELERATION Shaking up our product offer PERFORMANCE- Client communication 2.5 point 365 days/year 2015 and beyond Client promise Totally connected Turnover gr
Slide 21: Client promise and turnover
WIN2016 – Tourism Client promise and turnover ALIGNMENT Alignment and leadership of Brand strategy Product/Offer/Packaging our offers depending on the & client segment Go to market New pricing strategy Client segment Price Direct sales(Web, MD) strengthened Acquisition VOLUME Partnerships with new m
Slide 22: Client promise and turnover: brand strategy
WIN2016 – Tourism Client promise and turnover Brand strategy and go to market Attracting new clients – to come and come again Wellness: the Aqua Mundo Market dome Accommodation seventh pillar in our offer Wellness A spa in each park in France Partner: Deep Nature Activities Kids experience Nature •
Slide 23: Comfort, services, new clients
WIN2016 – Tourism Client promise and turnover Brand strategy and go to market Comfort, Services, New Clients We’ve thought of Very Well-being A unique choice of holiday everything, especially A haven for recharging villages in France and Spain for your your batteries with spas, Entertaining holidays
Slide 24: Pricing strategy completely overhauled
WIN2016 – Tourism Client promise and turnover Brand strategy and go to market Pricing strategy completely overhauled, a structure focused on value management A PRICING OVERHAUL at all the P&V and CP sites for Winter 2013 and Summer 2014 depending on their flexibility and margin profiles: Flexibili
Slide 25: A refocused sales structure
WIN2016 – Tourism Client promise and turnover Acquisition & transformation A refocused sales structure with a reinforced foundation Strengthened cross-European organisations for DIRECT WEB SALES, CALLS and DIRECT MARKETING Redefining CUSTOMER RELATIONS and PROSPECTION and management of associated DA
Slide 26: A renewed marketing strategy
WIN2016 – Tourism Client promise and turnover Acquisition & transformation A renewed marketing strategy A CROSS-EUROPEAN structure for the Group A focus on CUSTOMER EXPERIENCE, placing customers at center-stage but not forgetting the product COMMUNICATION 365 days-a-year, focusing on digital platfor
Slide 27: A change in communication: more digital
WIN2016 – Tourism Client promise and turnover Acquisition & transformation A change in communication: more digital, more experimental CUSTOMERS CENTER-STAGE NATURE IS FUN December 5th 2013 27
Slide 28: Purchase consideration and customer loyalty
WIN2016 – Tourism Client promise and turnover Purchase consideration and customer loyalty SERVICES and PRIVILEGES DURING THE VACATIONS USES DURING THE VACATIONS e.g.: I am on vacation at Pierre & Vacances in Deauville and I would like to find a fine-dining restaurant in the area Uses Specific to a s
Slide 29: Mobile application model
WIN2016 – Tourism Client promise and turnover Purchase consideration and customer loyalty Uses MOBILE APPLICATION MODEL Services Tools for active client Content curation Freemium for assisted payment Partnership to increase value Loyalty offered program Mobile Application Model Mobile model Launch i
Slide 30: Site productivity and operating models
WIN2016 – Tourism Site productivity and operating models • CP: launch of high-margin on-site sales and review of ‘product plus’ program Costs: • P&V: closure of 15 more coastal sites for winter 2013/2014 margin • Making costs more flexible by better anticipating occupancy rates per site and improvem
Slide 31: Cost cutting: lease renewal policy
WIN2016 – Tourism Cost cutting Lease renewal policy Key measures Forecasts out to 2016/2017 Cut in P&V rental expenses, including indexation Capping of the indexation at an annual maximum of 2% (as for new leases signed) and excluding growth in the offering: For unexpired leases, a change in the ref
Slide 32: Digital roadmap
WIN2016 – Tourism Digital roadmap INNOVATION GAMES ACCELERATION DATA Communication 365d/year Dream PERFORMANCE- MULTICHANNEL and MOBILE DATA strategy and acquisition aligned with segmentation Change in communication MOBILE Search focused on Experience’ Social networks: Facebook, Multichannel Digital
Slide 33: A team in working order
WIN2016 – Tourism A team in working order A strengthened operating structure for executing action plans Cross-sector Business lines Sales departments departments PV CP Deputy CEO Human Group Operating CEO CP Resources Marketing innovation and CEO P&V Tourism Europe director director IT systems Sales
Slide 34: Conclusion - Tourism
CONCLUSION - TOURISM WIN2016 currently in progress Further growth in underlying operating profits in tourism for 2013/2014 +5%*(o/w+2% Growth REVPAR mix effect) Annualization of 2012/2013 +€10m cost-savings plan Operating Effects of handovers/withdrawals from loss-making sites in 2012/13 +€4m profit
Slide 35: WIN2016 Real Estate Development
WIN2016 REAL ESTATE DEVELOPMENT December 5th 2013 35
Slide 36: Diversified financing systems and management methods
REAL ESTATE DEVELOPMENT Diversified financing systems and management methods In France, attractive profitability levels thanks to tax incentive Real estate marketing to schemes in a safe-haven investment individual investors Extension in Germany (Bostalsee), and being engineered in the An asset-
Slide 37: Targeted developments in high growth brands/markets
REAL ESTATE DEVELOPMENT Targeted developments in high growth brands/markets and contributions to tourism operations Local short-stay offerings, open all year-round, in response to European social trends - In France: Center Parcs Vienne: 800 cottages, opening spring 2015 Center Parcs Roybon: 1,02
Slide 38: City aparthotel concept - joint venture with Accor
REAL ESTATE DEVELOPMENT Targeted development in high growth brands/markets and contributions to tourism operations City aparthotel concept growing rapidly all over the world - Joint venture with ACCOR - Resisting economic slowdown (rates around 20% lower than traditional hotels) - A profitable econo
Slide 39: Targeted development in innovative concepts: One Planet Living
REAL ESTATE DEVELOPMENT Targeted development in innovative concepts A brand new concept “One Planet Living” A 50/50 joint venture created by the Pierre & Vacances Center Parcs Group and Euro Disney S.C.A. Potential site further out with 500 hectares 6km from Disneyland® Paris –5,000 cottages/apa
Slide 40: Real estate development turnover
REAL ESTATE DEVELOPMENT TURNOVER Clear visibility on potential future real estate development turnover HIGH GROWTH IN 2013/2014 TURNOVER (> €250m) OVERALL, POTENTIAL TURNOVER OF €1.5bn BY 2015/2016 CP Vienne Villages Nature – Phase 1 (group share: 50%) CP Roybon CP Mid-size Senioriales and other pro
Slide 41: Conclusion
CONCLUSION 2013/2013 YEAR END RESULTS PRESENTATION 41
Slide 42: Conclusion
Conclusion WIN2016 PLAN CURRENTLY IN DEVELOPMENTS PREPARING FOR PROGRESS THE FUTURE Target to restore operating A project portfolio representing profitability reached in 2012/2013 almost €1.5bn out to 2015/2016… Further growth to come in 2013/2014 …in growth brands/markets and High growth in prope
Pierre & Vacances-Center Parcs Group — FY2012/2013 Earnings Presentation on 6ix