Aucun titre de diapositive

1
Annual Results
December 14, 2004
2
2004 Business Review
3
Business Review

• Uneven demand in the tourism market

• Rebound in Asia and North America
• Flat growth in Europe, with demand soft across
  the industry  

• A slight increase in Club Med business

• Americas Over-market growth led by actions
  underwaysince 2002
• Asia Gains reflected the expected positive
  impact of prior-year comparatives and the
  sustained pace of innovation
• Europe Flat business that held down summer
  performance
• Of which
• France Market shaped by problems at Thomas Cook,
  partly offset by higher indirect sales and
  continued growth in Internet sales

4
Business Review

• A sharp improvement in operating margin

Like-for-like revenues (m)
Number of customers(000)
Operating income (m)
1.2
0.4


23m
1,810
17
1,645
1,703
1,600
1,696
1,581
-3
-6
2003
2004
2003
2004
2002
2002
2003
2004
2002
Return to operating profit
5
Business Review

• Increased 3/4T stays and record customer
  satisfaction ratings

• Number of 3T and 4T hotel days sold up 2.4 over
  the year,of which 5.1 in the summer 2004 season
• A nearly 3-point increase in occupancy rates for
  3/4 Tridents
• Record customer satisfaction number of very
  satisfied customers up 20 to the highest level
  since measuring began in 1997
• Increasingly positive perception of value for
  money number of customers very satisfied with
  value for money up 15
• Record percentage of customers intending to come
  back (for the first time, more than 90) 90.1
  of satisfied/very satisfied customers intend to
  come back

Customers are embracing the move upmarket
6
Business Review

• Enhanced resources to drive growth

• A leading shareholder that is a major industry
  player, following Accors acquisition of a 28.9
  stake
• To support our recovery and repositioning
• Identified synergies today, around 10 million
  in 2005,20 million in 2006, 30 million in 2007

• A stronger balance sheet
• Debt held stable despite higher investments
• Refinanced to lengthen maturities

(in m)
(421)
(390)
(389)
2003
2004
2002
7
2004 Financial Review
8
Key Figures
2003
2004
(in millions)
Consolidated revenues ReportedLike-for-like
1,609
1,600
1,581
1,600
(6)
17
Operating result
(44)
Group net result
(94)
(74)
(100)
Capital expenditures
116
59
Disposals
42
(19)
Free cash flow
(389)
(390)
Net debt
9
Activities
2003
Variation
2004
0.4
Number of customers incl. Club Med
customers Incl. Jet tours customers
1,696,000
1,703,000
-0.6
1,421,000
1,429,000
5.8
267,000
282,000
1.2
1,600,000
Like-for-like revenues (K)
1,581,000
Like-for-like revenues Stay/HD
5.1
95.7
91.1
Capacity in hotel days
-5.2
13,431,000
14,174,000
Hotel days sold (1)
-3.5
9,251,000
9,590,000
68.9
Occupancy rate
1.2pt
67.7
(1) Huts 2 Tridents -29.4 3 4 Tridents
2.4
10
Consolidated Revenues

• Change 2004 vs 2003

• (reported)
• Winter -0.2
• Summer -1.0
• Full Year -0.6

• (like-for-like)
• Winter 2.4
• Summer 0.1
• Full Year 1.2

(in millions)
46
-27
Change in business base
Volume
11
Operating Result by Zone and Business
2004
2003
FullYear
FullYear
o/wSummer
o/wSummer
(in millions)
Europe
26
15
12
(4)
Asia
(5)
6
(5)
3
America
(21)
(6)
(23)
(16)

• Villages activity

0
15
(16)
(17)
Jet tours
1
3
1
2
Other activities
(1)
(7)
(3)
0

• Total Group

(6)
17
(18)
(15)
12
Analysis of Results from Villages Activity
o/wSummer
F. Year
(in millions)
0
2003 Operating result
(16)
Change impact
3
3
(19)
Volume impact
(14)
35
Mix/Price impact
13
(4)
Others
(3)
15
2004 Operating result
(17)
13
Analysis of Results in Europe
o/w Summer
Like-for-like
F. Year
Reported
03 Op. result
26
2003
2004
(in millions)
12
952
Revenues
Change impact Volume impact Mix/Price Others
924
3
3
(23)
(16)
536
Margin on var. costs
519
12
of revenues
56.3
56.2
3
(3)
(6)
(117)
Fixed selling costs
(114)
15
04 Op. result
(4)
(370)
Fixed operating costs
(369)
(22)
Overheads
(21)
26
Operating result
15
of revenues
2.7
1.6
14
Analysis of Results in Asia
o/w Summer
Like-for-like
F.Year
Reported
03 Op. result
(5)
2003
2004
(in millions)
(5)
156
Revenues
Change impact Volume impact- Asia ? Asia- Eur ?
Asia Mix/Price Others
172
1
0
6
6
85
Margin on var. costs
94
5
4
of revenues
54.5
54.7
1
2
5
(23)
Fixed selling costs
(23)
2
(1)
0
(60)
Fixed operating costs
(58)
6
04 Op. result
3
(7)
Overheads
(7)
(5)
Operating result
6
of revenues
-3.2
3.5
15
Analysis of Results in America
o/w Summer
Like-for-like
F. Year
Reported
03 Op. result
(21)
2003
2004
(in millions)
(23)
266
Revenues
Change impact Volume impact - Am ? Am- Eur ?
Am Mix/Price Others
257
0
1
(4)
(6)
157
Margin on var. costs
157
7
3
of revenues
59.0
61.1
(11)
(9)
19
(41)
Fixed selling costs
(41)
9
0
3
(130)
Fixed operating costs
(119)
(6)
04 Op. result
(16)
(7)
Overheads
(6)
(21)
Operating result
(6)
of revenues
-7.9
-2.3
16
Jet tours Operating Result
2003
2004
(in millions)
276
Revenues
269
28.4
31.9
Semi-net margin
10.5
11.5
of revenues
(27.4)
(29.1)
Other costs
1.0
2.8
Operating result
17
Jet tours Other Activities Operating Results
(in millions)
2003
2004
Operating result
3
Jet tours
1
(2)
2
Club Med Gym
(5)
(3)
Club Med World
(6)
2
Total
18
Result Statement
2003
2004
(in millions)
1,609
1,600
Revenues
(6)
17
Operating result
(38)
Net financial expenses
(45)
0
0
Net income from equity companies
(56)
(18)
Net exceptional expenses
21
4
Taxes
(8)
(8)
Goodwill amortization
0
(1)
Minority interests
(94)
(44)
Group net result
19
Net Financial Expenses
2003
2004
(in millions)
(8)
(8)
Credit cards transaction fees
(27)
(27)
Interest expenses
-
Others
(1)
(36)
(35)
Net financial expenses excl. change impact
(9)
(3)
Realized unrealized exchange gains losses
(45)
(38)
Net financial expenses
5.62
5.95
Cost of debt
482
457
Average debt
20
Result Statement
2003
2004
(in millions)
1,609
1,600
Revenues
(6)
17
Operating result
(38)
Net financial expenses
(45)
0
0
Net income from equity companies
(56)
(18)
Net exceptional expenses
21
4
Taxes
(8)
(8)
Goodwill amortization
0
(1)
Minority interests
(94)
(44)
Group net result
21
Balance Sheet
(in millions)

10/31/03
10/31/04
10/31/03
10/31/04
Fixed assets - Tangible assets -
Intangible assets - Financial assets
Shareholders equity minority interests
444
488
761
805
68
Provisions
78
183
194
180
97
Working capital
181
89
389
390
Net financial debt
1,096
1,033
Total fixed assets
40
49
Net deferred taxes
1,082
1,082
1,136
1,136
Total Assets
Total Liabilities
Gearing
87.8
79.7
22
Total Borrowings and Lines of Credit
04/30/04
10/31/04 (1)
(in millions)
140
140
OCEANE bonds 2008
-
150
OCEANE bonds 2010
170
164
Capital leases long-term loans
220
70
Medium-term line of credit
Total confirmed and available borrowings and
lines of credit
530
524
424
390
Net debt
47 months
73 months
Average maturity
(1) Situation after refinancing done in October
2004
23
Cash Flow Statement
2003
2004
(in millions)
(17)
20
Cash flow
8
1
Change in working capital
1
Change in provisions
9
0
22
Funds from operating activities
(74)
(100)
Capital expenditures
116
59
Disposals and others
42
(19)
Free cash flow
(7)
18
Change impact and others
32
(1)
Cash variation
24
The Switch to IFRS
25
Options and Implementation

• Project underway ahead of the legal
  deadlineNov. 1, 2005 for Club Med

• Asset revaluation (IFRS 1)
• Option taken one-time revaluation
• Outside valuation of the villages
• Implementation of the component-based approach
• Review of all 52 lease contracts (IAS 17 and 18)
• Impairment tests (IAS 36)
• Tangible assets the village represents the CGU
• Intangible assets
• Pension provisions (IAS 19)
• Identify commitments given by our 127
  subsidiaries
• Recognize actuarial differences
• Stock options IFRS 2
• IAS 32 and 39 application in 2005 of exceptions

26
Main Impacts
(in millions)
Oct. 31, 04 pro-formaIFRS
Oct. 31, 04 pro-formaIFRS
Main IFRS impacts
Main IFRS impacts


Oct. 31, 04reported
Oct. 31, 04 reported
Tangible assets - Land -
Buildings Intangible andfinancial assets
Shareholders eq. min. interests
761
1,086
444
541
325
97
337
248
89
Provisions
68
74
6
751
77
672
Deferred taxesnet
(49)
42
91
272
250
(22)
WCR
200
180
20
1,336
1,033
303
Sub-total assets
Net debt
479
390
89
303
1,033
Total assets
1,336
303
1,033
Total liabilities
1,336
Impact of IFRS restatements on the statement of
income (in m) Operating income Net income
5
17
22
(39)
5
(44)
27
Outlook for Winter 2005
28
Winter 2005

• Capacity by zone

Winter 04
Winter 05
(in thousands of HD)
vs 2004
3,002
Europe- Ski- Sun
2,901
3.5
1,437
1,600
-10.2
1,565
1,301
20.3
869
927
Asia
6.7
1,776
1,429
America
-19.5
5,546
5,358
Total Worldwide
-3.4
29
Winter 2005

• Capacity by category

Winter 03
Winter 04
(capacity in )
Winter 05
10
11
6
55
56
58
91
31
31
33
3
3
3
Cruise ships villas
100
100
Total
100
Further improvement in the product mix
30
Winter 2005

• Winter 2005 bookings (vs Winter 2004), at
  December 4, 2004

Cumulative,at 12/04/2004
Over the last four weeks
Revenues
Europe
4.3
0
America
1.5
7.5
Asia
0.9
1.4
Total Club Med
3.6
1.3
Jet tours
(2.0)
2.3
31
2006 target Operating Income of around 100m
(in millions)
17
2004 Op. income
Assumptions
25/35
Volume impact
20,000 to 30,000 additional customers per year
1.4 to 2.0 gain
50/60
Price/Mix effect
Adding 3-3.50 to average price/HD per year
23
Purchasing gains
Tracking the  INCA  project
Increase in costs
(35)

• Costs of moving upmarket
• Marketing expenses to support growth
• Other costs (payroll, energy, etc.)

20
Synergies with Accor
2006 Op. income of around
100
32
Heading for Incomparable

• Phase I 2002-2004 Preparing for Change
• Phase II 2004-2007 Heading for Incomparable

33
2002-2004 Preparing for Change

• Major issues resolved

• Loss-making operations eliminated and Americas
  turned around
• Village portfolio resegmented
• Improved operating margins and customer
  satisfaction
• Indirect distribution broadened
• Market share gains
• Purchasing reorganized
• 30 million saved (2003-2006)

• Strategic vision clearly defined

• Customer-centric
• Refocused on the villages business
• Value-driven

34
2002-2004 Preparing for Change

• The strength of the Club Med brand

? Before defining the strategy listen to the
customer!
The example of France
Competition customers
Club Med customers
Criteria of choosing a vacation Club

• Reputation 43 (n1) 21 (n4)
• Destination 35 (n2) 37 (n2)
• Type of stay 21 (n3) 10 (n6)
• Organization 20 (n4) 17 (n5)
• Activities 19 (n5) 6 (n7)
• Price 16 (n6) 44 (n1)

Unique, uncontested positioning Friendly,
multicultural upmarket
(Source UA NFO Sofres France, summer
villages feb. 04)
35
2002-2004 Preparing for Change

• Moving the offer upmarket to respond to demand
  and optimize variable margin

? Village portfolio substantially upgraded
since 1998
In number of beds
2004
2005
1998
huts and 2T 34 16 9 3 and 4T
villages 66 84 91
? and extensively transformed over the past
five years

• New villages opened 19
• Villages renovated 70
• Villages enlarged 14
• Villages moved upmarket 21
• Villages sold or closed 45

A new face for Club Med
36
2002-2004 Preparing for Change

• A strategy driven by value, not volumes

GOP
Selling price
Average village (GOP/HD), 2004
47
Costs
27
16
84
Capacity, 2004
Comfort level
2 ?
3 ? 4 ?
A profitable business model
37
2002-2004 Preparing for Change

• Phase I 2002-2004 Preparing for change

• Adopt a profitable business model
• Define a strategic vision and positioning aligned
  with objectives

End 2004 Fundamentals consolidated

• A return to operating profit
• A village portfolio moved upmarket
• A revitalized, personalized offer
• Setting Course for the Incomparable launched to
  express the value-driven strategy

• Phase II 2004-2007 Heading for Incomparable

• Implementing the value-driven strategy
• Demonstrating the changes

Faster growth Winning new customers
38
Heading for Incomparable a Strategic Project

• Phase I 2002-2004 Preparing for change

• Adopt a profitable business model
• Define a strategic vision and positioning aligned
  with objectives

End 2004 Fundamentals consolidated

• A return to operating profit
• A village portfolio moved upmarket
• A revitalized, personalized offer
• Setting Course for the Incomparable launched to
  express the value-driven strategy

• Phase II 2004-2007 Heading for Incomparable

• Implementing the value-driven strategy
• Demonstrating the changes

Faster growth Winning new customers
39
Heading for Incomparable a Strategic Project

• A corporate project to drive execution of the
  strategy Setting Course for the Incomparable
  launched

• Project designed on the basis of
• Consumer surveys
• An on-site diagnosis, after surveying more than
  3,000 GOs worldwide during summer 2004

To accelerate the change process
40
Heading for Incomparable a Strategic Project

• Getting employees involved in five priority
  projects

Getting the regions involved
cascading through operations
Executive Committee teambuilding April 2004
Developing the Ressource TeamNovember 2004
Training the Ressource Team
Surveys May-June 2004
Marrakech Convention
People involved
3,000
25
15,000
640
80
12

• Sales/ Marketing/ Transportation
• Services
• Village organization
• GO / GE
• Management principles

5 priority projects
Ensure fast implementation to make change a
reality
41
Heading for Incomparable a Strategic Project

• Marketing / sales projects Focusing on priority
  targets

• 3 priority actions leveraging the potential of
  the customer database
• Re-recruit lapsed customers
• Transform first-timers into repeaters
• Increase frequency of repeat stays by occasional
  customers

Drive faster sales by stimulating and retaining
target customers
42
Heading for Incomparable a Strategic Project

• Initial outcomes from the marketing and sales plan

To increase sales A new Trident

• Objective Enable the Trident to project the
  upmarket imageand serve as a recruiting tool
• 4 major innovations to align the Trident with the
  new positioning
• Segmentation by pleasure, to respond to each
  customers expectation
• Premium brochures format, design, graphics, etc.
• A decision support guide
• New related information nearby, symbolizing
  openness to others

A new global campaign

• Objective Announce the new positioning loud and
  clear
• Enhance the image of the Club Med brand
• Demonstrate the changes
• Launch January 2005

43
Heading for Incomparable a Strategic Project

• New product innovations

• Supporting the Customer Satisfaction/Value
  model with innovation
• Introducing optional Total All Inclusive
  solutions in Europe/Africa and Asia villages in
  summer 2005
• Replacing the bar booklet with Club Med Pass
  card
• Enhancing the offer with the new concept designed
  for teens

44
Heading for Incomparable a Strategic Project

• New enhancements to the village experience

• Continue moving the villages upmarket, with
  120/130 million invested directly and 45
  million by partners

• After Marrakech, El Gouna, Coral Beach and
  Chamonix (4 T upgrade)

• Val dIsère (4T) and Turquoise renovated
• Riad opened in Marrakech
• 20 new water bungalows in Kani
• 4T built in Peisey (Paradiski)
• Les boucaniers rebuilt as a 3T

45
Conclusion

• Objectives confirmed

• A clear, uncontested positioning that expresses
  our difference
• A brand and brand content that demonstrate the
  changes
• A value-driven strategy supported by a compelling
  corporate mission project
• A business model validated by the sustained
  improvement in margins and the success of the
  Oceane issue
• A major industry player as a leading shareholder,
  to generate synergies

Objective confirmed Around 100 million in
operating income in 2006
46
Appendices
Activity

• Key figures by season
• Statistics by season
• Number of clients by issuing countries
• Reported revenues by zone and activity
• Like-for-like revenues by zone and activity
• Capacity and occupancy rates by zone

Results

• Analysis of results from Villages activity
• EBITDA/EBITDAR

Capital expenditure
47
Key Figures by Season
Winter
(in millions)
Summer
F. Year
2004
2004
2004
2003
2003
2003
Reported revenues
784
816
1,600
785
824
1,609
(45)
Capital expenditure
(40)
(55)
(34)
(100)
(74)
33
Disposals
26
59
44
72
116
32
Operating result
12
(15)
(18)
17
(6)
(4)
Net result
(29)
(40)
(65)
(44)
(94)
(424)
Net debt (end of period)
(436)
(390)
(389)
(390)
(389)
(33)
Free cash flow
(6)
14
48
(19)
42
48
Statistics by Season
Winter
(in K units)
Summer
F. Year
2004
2004
2004
2003
2003
2003
Club Med customers
639
790
1,429
642
779
1,421
Jet tours customers
125
142
267
129
153
282
Total Customers
764
771
932
932
1,696
1,703
Hotel days sold
4,017
4,045
5,532
5,267
9,590
9,251
Average stay
6.28 d
6.30 d
7.0 d
6.80 d
6.70 d
6.50 d
Capacity in HD
5,807
5,546
8,367
7,885
14,174
13,431
Occupancy rate
69.9
66.1
67.7
71.8
66.8
68.9
Travelling GMs
268
262
395
394
663
656
Travelling GMs
41.9
40.9
50.0
50.6
46.4
46.2
49
Number of Clients by Issuing Countries
(in K clients)
2000
2001
2002
2003
2004
France
694
758
656
613
581
Belgium
113
122
108
104
101
Italy
104
93
87
86
79
Switzerland
50
48
41
35
34
Germany
54
51
40
34
28
Netherlands
40
40
36
33
32
Great-Britain
37
35
32
29
27
Israel
33
43
24
17
17
Turkey
18
14
14
14
13
Austria
12
14
8
3
3
Spain
11
10
7
2
2
Russia
8
8
7
6
6
South Africa
5
6
6
6
6
Greece
5
6
5
7
7
Others
10
11
20
14
14
EUROPE
1,194
1,258
1,090
1,003
950
USA - Canada
176
180
142
138
150
Brazil
59
62
66
81
79
Mexico
26
24
14
13
23
Others
19
18
11
12
16
AMERICA
280
284
233
244
268
Japan
95
96
99
95
102
Australia
34
33
26
21
22
Malaysia
20
22
20
17
12
Singapore
17
18
18
22
16
Others
70
70
49
33
45
ASIA/PACIFIC
236
240
212
182
203
GROUP
1,710
1,782
1,534
1,429
1,421
50
Reported Revenues by Zone and Activity
(in millions)
Other activities 3.6
Jet tours 17.3
vs 4.0 in 03
vs 16.3 in 03
France 35.3
58
vs 36.4 in 03
276
Asia 9.1
565
145
vs 8.1 in 03
203
352
America 12.7
Rest of Europe 22.0
vs 12.6 in 03
vs 22.6 in 03
Total 1,600 million in 2004
51
Like-for-like Revenues by Zone and Activity
Changes 2004 vs 2003
Winter
2003
(in millions)
2004
Summer
04 vs 03
0.0
Europe
948
917
-6.0
-3.3
Asia
4.6
127
145
23.1
13.9
America
9.3
186
203
8.8
9.1

• Villages

2.3
1,251
1,266
-1.6
0.3
Jet tours
263
276
6.7
5.1
3.3
0.9
Other activities
56
58
3.3
6.1

• Group

0.1
2.4
1,581
1,600
1.2
52
Capacities and Occupancy Rates by Zone
Winter
(in K units)
Summer
F. Year
2004
2004
2004
2003
2003
2003
Europe
2,901
Capacity
3,040
5,540
5,706
8,441
8,746
78.2
Occupancy rate
77.4
70.4
73.0
73.1
74.5
Asia
869
Capacity
969
1,838
915
987
1,902
54.0
Occupancy rate
53.7
53.8
50.2
44.5
47.4
America
1,776
Capacity
1,376
3,152
1,852
1,675
3,527
85.4
Occupancy rate
42.0
66.4
67.2
55.4
61.6
TOTAL
5,546
Capacity
7,885
13,431
5,807
8,368
14,174
76.7
Occupancy rate
63.4
68.9
69.9
66.1
67.7
53
Analysis of Results from Villages Activity
2003
2004
(in millions)
1,265
Revenues
1,282
778
770
Margin on var. costs
60.7
60.9
of revenues
(180)
(175)
Fixed selling costs
(560)
(546)
Fixed operating costs
(38)
(34)
Overheads
0
15
Operating result
54
EBITDA / EBITDAR
2003
2004
(in millions)
17
Operating result
(6)
84
75
Amortization
78
88
EBITDA
4.8
5.5
of revenues
118
118
Rents
196
206
EBITDAR
12.2
12.9
of revenues
55
Capital Expenditure
2003
2004
(in millions)

• Capital expenditure
• Tangible assets
• Intangible assets
• Financial assets

52
87
9
8
5
13
74
100
Total

• Disposals
• Deconsolidation
• Sale and lease of the buildings
• Others
• Deposits reimbursement

(116)
(59)
(75)
(39)
(31)
-
(10)
(10)
(10)
-