Half-year 2014 results May 16 th, 2014
Winter 2014 2 Pragelato-Vialattea, Italia
Differences between the final figures and estimated data* *Published on April 28 th, 2014 (in m) S1 12 S1 13 S1 14 estimated data S1 14 Change S1 14 vs estimated data Business Volume Villages (1) 769 758 775 776 1 Consolidated revenue Group - published (2) 783 763 759 760 1 Villages - at constant exchange rate 745 736 756 757 1 EBITDA Villages (3) 85 81 84 85 1 As a % of revenue 10,9% 10,7% 11,1% 11,2% Operating Income - Villages 53 49 51 52 1 Operating Income - Management of Assets (14) (9) (13) (13) 0 Other Operating Income and Expense (7) (10) (8) (8) 0 Operating Income 32 30 30 31 1 Net Income before tax and non-recurring items 39 35 38 39 1 Net Income 17 18 15 16 1 Investments (24) (36) (33) (34) (1) Disposals 23 0 0 0 0 Free Cash Flow 47 11 23 26 3 Net debt (123) (112) (97) (4) (87) 10 (1) Total sales regardless the operating structure (like-for-like) (2) Includes 9 million, 2 million et 3 million in property development revenue for, respectively, half-year 2012, 2013 and 2014 (3) EBITDA Villages : Operating Income Villages before interest, taxes depreciation and amortization (4) Includes the conversion of 1,235,041 OCEANEs versus 1,097,719 OCEANEs as of April 25th, 2014 (in m) Reported S1 12 S1 13 S1 14 estimated data S1 14 Change S1 14 vs estimated data Europe-Africa 9 3 (3) (2) 1 Americas 25 26 29 29 0 Asia 19 20 25 25 0 Operating Income - Villages 53 49 51 52 1 As of % of revenue 6.8% 6.5% 6.7% 6.9% 3
Financial Highlights 4 (in m) S1 12 S1 13 S1 14 Change S1 14 vs S1 13 Business Volume Villages (1) 769 758 776 + 2,4% Consolidated revenue Group - published (2) 783 763 760-0,4% Villages - at constant exchange rate 745 736 757 + 2,9% EBITDA Villages (3) 85 81 85 As a % of revenue 10,9% 10,7% 11,2% Operating Income - Villages 53 49 52 + 5,1% Operating Income - Management of Assets (14) (9) (13) Other Operating Income and Expense (7) (10) (8) Operating Income 32 30 31 Net Income before tax and non-recurring items 39 35 39 + 12,6% Net Income 17 18 16-10,5% Investments (24) (36) (34) Disposals 23 0 0 Free Cash Flow 47 11 26 Net debt (123) (112) (87) (1) Total sales regardless the operating structure (like-for-like) (2) Includes 9 million, 2 million et 3 million in property development revenue for, respectively, half-year 2012, 2013 and 2014 (3) EBITDA Villages : Operating Income Villages before interest, taxes depreciation and amortization (4) Includes the conversion of 1,235,041 OCEANEs as of April 30th, 2014 (4)
Business performance Villages S1 12 S1 13 S1 14 Change S1 14 vs S1 13 Customers (in '000s) 623 598 622 + 4.1% O/w 4/5 Tridents customers 74.4% 77.3% 77.6% +0.3 pts Hotel days sold (in '000s) 3,789 3,630 3,693 + 1.7% Capacity in hotel days (in '000s) 5,389 5,140 5,241 + 2.0% O/w 4/5 Tridents capacity 73.7% 76.5% 77.6% +1.1 pts Occupancy rate 71.1% 71.3% 71.1% -0.2 pts Revenue (1) /Hotel Days 151.1 156.0 158.1 + 1.3% RevPAB (2) per Hotel Days 110.1 113.9 114.7 + 0.6% % Direct Revenues (3) 58.3% 57.8% 58.9% +1.1 pts (1) Like-for-like (2) Revenue Per Available Bed : total like-for-like business volume, net of tax and transportation costs, per available bed (3) Direct individual sales (internet, Club Med Voyages, Call center, Franchises and shop-in-shop) 5
Consolidated Group revenue: 760m (in m) At constant exchange rate S1 12 S1 13 S1 14 Change S1 14 vs S1 13 Europe-Africa without France 202 202 205 + 1.7% France 337 319 321 + 0.7% Europe - Africa 539 520 526 + 1.0% Americas 119 125 134 + 7.6% Asia 87 91 97 + 7.1% Villages 745 736 757 + 2.9% Property development & other property revenue 9 2 3 Group 754 738 760 + 3.0% S1 2013 Group revenue (published) 763 Change (25) Volume Effect 13 Price Mix Effect 9 Villas & Chalets 0 Group Revenue 760 S1 2014 6
Operating margins (in m) Reported S1 12 S1 13 S1 14 EBITDAR Villages (1) 163 160 161 % of revenues 21.1% 21.0% 21.3% EBITDA Villages (2) 85 81 85 % of revenues 10.9% 10.7% 11.2% Operating Income Villages 53 49 52 % of revenues 6.8% 6.5% 6.9% (1) EBITDAR Villages : Operating Income Villages before depreciation, amortization, rents and change in provisions (2) EBITDA Villages : Operating Income Villages before depreciation, amortization and change in provisions 7
Operating Income Villages (in m) S1 2013 At constant exchange rate S1 12 S1 13 S1 14 S1 2013 Operating Income - Villages Reported 49 Revenue 745 736 757 Translation adjustments (2) Other revenue 1 2 4 S1 2013 Operating Income - Villages at constant exchange rate Total revenue 746 737.5 761.6 Volume effect 11 Margin on variable costs 473 467 481 Change in price mix 3 % revenue 63.4% 63.5% 63.6% Change in margin on variable costs 14.3 Fixed sales & marketing costs (94) (97) (99) Fixed sales & marketing costs (2) Fixed operating costs (225) (223) (229) Fixed operating costs (6) Real estate costs (89) (90) (89) Real estate costs 0.4 Overhead costs (12) (10) (12) Overhead costs (2) Operating Income - Villages 53 47 52 S1 2014 Operating Income - Villages 52 47 S1 2014 8
Operating Income Villages by region (in m) Reported S1 12 S1 13 S1 14 Europe-Africa 9 3 (2) Americas 25 26 29 Asia 19 20 25 Operating Income Villages 53 49 52 % of revenue 6.8% 6.5% 6.9% 9
Net Income before tax and non-recurring items (in m) Reported S1 12 S1 13 S1 14 Net Income before tax and non-recurring items 39 35 39 Capital gains on sale of assets 16 0 0 Impairment / Write-off / Exit of Villages / Others (23) (2) (9) Restructuring costs 0 0 (3) Litigation and Others (6) (7) (3) Others 0 0 (1) Net Income before tax 27 26 24 Tax (10) (8) (8) Net Income 17 18 16 10
Statement of Income (in m) Reported S1 12 S1 13 S1 14 Group revenue 783 763 760 Operating Income - Villages 53 49 52 Operating Income - Management of Assets (14) (9) (13) Other Operating Income & Expense (7) (10) (8) Operating Income 32 30 31 Finance cost - net (6) (5) (8) Share of profit of associates 1 1 1 Income tax/benefit (10) (8) (8) Net result 17 18 16 11
Balance sheet Non-current assets 04.13 10.13 Restated (1) 04.14 Equity and liabilities 04.13 10.13 Restated (1) 04.14 PPE 803 751 730 Equity incl. Minority interests 533 469 495 Intangible assets 81 82 85 Provisions 45 52 55 Non-current financial assets 90 91 96 Deferred tax liabilities - net 26 24 24 Total non-current assets 974 924 911 Working capital 230 225 225 Government grants (28) (27) (25) Net debt 112 127 87 Total 946 897 886 Total 946 897 886 (1) Change in accounting policy relating to the amendment of IAS 19 (provision for pensions + 3m / equity (3)m) Gearing 20,9% 26,9% 18,0% Working capital / Villages revenue 16,0% 16,1% 16,1% Average capital employed (2) / Villages revenue 50% 50% 48% (1) Change in accounting policy relating to the amendment of IAS 19 (provision for pensions + 3m / equity (3)m) (2) Average capital employed = (fixed assets net of grants settlements - working capital) at opening and closing / 2 12
Cash Flow statement (in m) Reported S1 12 S1 13 S1 14 Net Income 17 18 16 Amortization 32 32 32 Others 1 (2) 2 Cash Flow 50 48 50 Change in working capital & provisions (2) (1) 10 Net cash from operating activities 48 47 60 Capital expenditure (24) (36) (34) Disposals 23 0 0 Free Cash Flow 47 11 26 Translation impacts on cash and others (5) (5) 14 Change in net debt 42 6 40 Opening net debt (165) (118) (127) Closing net debt (123) (112) (87) Free Cash Flow before disposals and exit costs 35 12 27 (1) Includes the conversion of 1,235,041 OCEANEs as of April 30th, 2014 (1) 13
Summer 2014 Rio das Pedras, Brazil 14
Summer 2014 bookings Bookings in total business volume at constant exchange rate by outbound country Cumulative as of April 26, 2014 Cumulative as of May 10, 2014 8 last weeks Europe-Africa - 4.7% - 4.6% - 16.3% Americas + 15.2% + 11.5% - 2.9% Asia + 5.3% - 1.3% - 12.3% Total Club Med - 2.3% - 3.0% - 14.1% Summer capacity - 3.8% -4.6% 15
16 THANK YOU
Appendices Business performance Revenues by region Revenues by business Number of customers by outbound countries Capacity and occupancy rate by region Statistics over 3 years by level of comfort Earnings Analysis of Operating Income Villages by region Financial result Financial ratios 17
Revenues by region As a % of revenue Reported S1 2012 S1 2013 S1 2014 France 26% 27% 27% Europe-Africa without France 43% 42% 42% Americas 17% 18% 18% Asia 12% 13% 13% Property development 1% 0% 0% 18
Revenues by business (in m) At constant exchange rate S1 12 S1 13 S1 14 Change S1 14 vs S1 13 BV Stays/Tours/Services 572 566 584 + 3.1% BV Transport 168 162 163 + 0.9% As a % of revenue 21.8% 21.4% 21.1% - 0.3pt BV Others (1) 19 19 21 + 8.0% BV Operations 37 38 40 + 5.4% VAT (27) (27) (32) + 17.6% Business Volume Villages 769 758 776 + 2.4% Managed (24) (22) (18.5) - 17.1% Revenue - Villages 745 736 757 + 2.9% (1) BV others = BV insurance and BV cancellation costs, loyalty programs and coupons 19
Number of customers by outbound countries (in '000s customers) S1 12 S1 13 S1 14 20 France 238 212 211 As a % 38% 35% 34% Belgium 46 42 39 United-Kingdom 22 21 20 Switzerland 10 10 10 Israel 11 11 13 Germany 11 11 12 South Africa 8 8 8 Russia 7 7 7 Italy 8 6 6 Netherlands 7 6 4 Others 10 9 10 EUROPE-AFRICA 378 343 340 USA - Canada 74 76 82 Brazil 40 39 46 Mexico 9 10 7 Argentina 7 6 6 Others 1 1 1 AMERICAS 131 132 142 China 30 38 52 Japan 18 22 25 Singapore 17 17 17 Malaysia 9 10 10 Australia 12 9 9 South Korea 9 8 8 Taïwan 8 9 7 Hong Kong 7 7 7 Others 4 3 5 ASIA 114 123 140 TOTAL Club Med 623 598 622
Capacity and occupancy rate by region S1 12 S1 13 S1 14 Change S1 14 vs S1 13 Europe-Africa Capacity 2,909 2,703 2,674-1.1% Occupancy rate 73.2% 73.1% 71.9% -1.2 pts Americas Capacity 1,539 1,550 1,540-0.6% Occupancy rate 73.7% 71.9% 75.5% + 3.6 pt Asia Capacity 942 887 1,027 + 15.7% Occupancy rate 59.9% 64.7% 62.3% - 2.3 pt Total Capacity 5,389 5,140 5,241 + 2.0% O/w 4&5 T capacity 3,972 3,934 4,069 + 3.4% % total 73.7% 76.5% 77.6% +1.1 pts Total occupancy rate 71.1% 71.3% 71.1% -0.2 pts Occupancy rate : calculate by bed and on the total of opening days 21
Statistics over 3 years by level of comfort GM (in '000s) Capacity (K HD) Occupancy rate RevPAB (in /HD) S1 12 S1 13 S1 14 S1 12 S1 13 S1 14 S1 12 S1 13 S1 14 S1 12 S1 13 S1 14 2 & 3 T 156 131 134 1,418 1,206 1,172 70.7% 71.7% 73.6% 88.9 95.6 97.3 4 & 5 T 463 462 483 3,972 3,934 4,069 71.1% 71.1% 70.4% 113.5 115.2 115.2 Tours 4 5 5 Total 623 598 622 5,389 5,140 5,241 71.1% 71.3% 71.1% 110.1 113.9 114.7 22
Analysis of Operating Income Villages Europe-Africa (in m) S1 2013 At constant exchange rate S1 12 S1 13 S1 14 S1 13 Operating Income - Villages Reported Revenue 539 520 526 Translation adjustments (1) Other revenue (incl. IZ revenue) 10 14 16 S1 13 Operating Income - Villages at constant exchange rate Total revenue 549 534 542 Volume effect 3 Margin on variable costs 300 290 288 Change in price mix (5) % revenue 54.6% 54.2% 53.1% Margin on variable costs (2) Fixed sales & marketing costs (65) (64) (64) Fixed sales & marketing costs 0 Fixed operating costs (148) (147) (149) Fixed operating costs (2) Real estate costs (69) (70) (69) Real estate costs 1 Overhead costs (9) (7) (8) Overhead costs (1) Operating Income - Villages 9 2 (2) S1 14 Operating Income - Villages (2) 3 2 S1 2014 23
Analysis of Operating Income Villages Americas (in m) S1 2013 At constant exchange rate S1 12 S1 13 S1 14 S1 13 Operating Income - Villages Reported Revenue 119 125 134 Translation adjustments (1) Other revenue (incl. IZ revenue) 46 44 47 S1 13 Operating Income - Villages at constant exchange rate Total revenue 164.5 168.7 181.6 Volume effect 5 Margin on variable costs 108 110 119 Change in price mix 4 % revenue 65.7% 65.1% 65.4% Margin on variable costs 9 Fixed sales & marketing costs (15) (16) (17) Fixed sales & marketing costs (1) Fixed operating costs (57) (57.4) (60) Fixed operating costs (2.5) Real estate costs (10) (10) (11) Real estate costs (0.4) Overhead costs (2) (2) (2) Overhead costs (0) Operating Income - Villages 24 24.4 29 S1 14 Operating Income - Villages 29 26 24 S1 2014 24
Analysis of Operating Income Villages Asia (in m) S1 2013 At constant exchange rate S1 12 S1 13 S1 14 S1 13 Operating Income - Villages Reported Revenue 87 91 97 Translation adjustments (0) S1 13 Operating Income - Villages Other revenue (incl. IZ revenue) 16 15 18 20 at constant exchange rate Total revenue 103 106 115 Volume effect 4 Margin on variable costs 65 67 75 Change in price mix 3 % revenue 62.9% 63.5% 65.0% Margin on variable costs 7 Fixed sales & marketing costs (14) (17) (17) Fixed sales & marketing costs (0.5) Fixed operating costs (20) (19) (20.5) Fixed operating costs (1) Real estate costs (9) (10) (10) Real estate costs (0) Overhead costs (1) (1) (2) Overhead costs (0.3) Operating Income - Villages 20 20 25 S1 14 Operating Income - Villages 25 20 S1 2014 25
Financial cost - net (in m) Reported S1 12 S1 13 S1 14 OCEANE 2010 & 2015 / ORANE (3) (3) (3) Other Interest expenses (4) (2) (2) Interest expenses (7) (5) (5) Titles disposals & provisions 0 0 0 Exchange gains / losses net 1 0 (3) Finance cost - net (6) (5) (8) Average net debt (182) (161) (148) Calculated cost of debt 7.9% 6.7% 6.6% Cash cost of debt excl. IFRS impact 5.8% 4.4% 3.7% 26
Financial ratios (in m) Reported 10.12 04.13 10.13 04.14 Reminder Covenants as of 04/30/2014 Liquidity 158 178 164 175 - Net debt (118) (112) (127) (87) - Net debt / EBITDA Villages (as defined below) (1) 0.86 0.84 0.99 0.66 < 2,5 EBITDAR Villages (2) (as defined below) / (Interest + rents (3) ) 1.7 1.7 1.7 1.8 > 1,4 EBITDAR Villages (2) / Adjusted financial fees (4) 25x 28x 30x 33x - Gearing 23% 21% 27% 18% < 100% (1) = EBITDA Villages restated for credit cards costs (2) = EBITDAR Villages restated for credit cards costs (3) = Village rents used to calculate the EBITDAR Village (4) Interest expenses adjusted from IFRS impacts on convertible bonds (OCEANE) 27