15
Jun
2007
Here's the transcript of the presentation held by F. Giscard d'Estaing when I was there on june 8th in the village of OpioJun
2007
For those who want the slides that go with it just mail me
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Ladies and gentlemen good morning, I hope you had a very nice evening and that you're relaxed. And it's a nice day today so we will have this lovely, lovely lunch later on today and I think it will be very nice.
Welcome, we're going to start with the financial results and our CEO, Henri Giscard d'Estaing.
HENRI GISCARD D'ESTAING, CEO, CLUB MEDITERRANEE: Good morning everyone. In a minute with Michel I am going to present the financial statement from the first semester as we have done in Provence, Tuesday and Wednesday. We had the convention of [Club Mediterranee], we had a meeting of all the -- our best (inaudible) of the world as we have done, three years ago now in Marrakech to launch our new company with the success -- the conversion of the Mediterranee Club and this is what we called in comparable chorus. And for this convention we have prepared a little movie which summarizes what we have done and as you have -- this is an internal document, it's very interesting I find, maybe even fun for you to share this with you. So before giving the presentation and the results here we're going to have the [course] on a comparable Club Med.
(Video playing)
Thank you. I am very happy once again to welcome you here in this village of Opio in the Provence which has been entirely renovated, and I think it's a good example of our upmarket strategy representative of those villages which also welcome our business customers at this convention center.
We are going to talk to you about our financial results for this six months which ended on April 30. You know our strategy; this implementation where we have seen has been a real long distance race, and we have kept the promises we made to you in 2004 and now we're going to move into this Spring state. So by the end of 2008 we'll be ready to deliver the new Club Med.
Our meeting today is going to take place in the usual way. After a brief summary of our winter season, I will give the floor to Michel to give you figure breakdowns for the first six months of fiscal 2007. Next, to keep up this sports imagery, we will give you a rundown on this lap of the race involving realization of our new Club Med. Then we'll conclude with an overview of what we'll be presenting you this coming December, the new opportunities of Club Med.
Now let us start with our Winter 2007. As always, this season has its new situations we must contend with. This year we had the snow situation. In fact there was no snow, very little snow, climate warming or an exceptional mild season. In any case, some high altitude ski resorts benefited from a good level of snow despite of the situation.
Of course this has been a context of much media coverage, and although bookings started out very well, this affected the entire ski market. Now the first note, which was reassuring for Club Med, was our sales in the snow seasons actually did increase, even though it was a difficult market.
The second point is the Sun village sales from Europe actually had a very good increase, plus 14; up 14%. This is because of our repositioning of our offer in this phase of new expectations. And we also, in the Asian sales, we had a very good progression of 30% up.
Also, a third point, our product innovation started showing -- bearing fruit as we have seen with this Bar & Snacking Included. Very appreciated by our customers, this Bar & Snacking Included is really a real asset which distinguishes us from others and it's our success that's linked to this.
Finally, and on a different line, our online sales has accelerated. This enables us to have a real advance on six objectives for this year, and I'm going to talk about that again later. Now with all of this, our revenues have been up 4% for like-for-like revenues, and also 5.7% for Village revenues. This year 2007 has been very good and it's shown that our strategy of repositioning has been effective.
Now concerning the operating income, we have seen a very good operating income Leisure which has been up EUR19 million. And this has also progressed as compared to Winter 2006 which, as I once recall, you had to integrate 13.5 insurance settlements because of the problems we had due to the natural disasters and the operating income shortfall. Now excluding these insurance settlements we had increase in [reality] of EUR21 million.
Now concerning the level of our Villages, they improved considerably. Now to measure this improvement we have to look at this in terms of the EBITDAR level which is simply the operating income for Leisure before our real estate costs. So this is the best indicator of our operational performance taking into consideration our new real estate strategy. And it has progressed by 22% as compared to Winter 2006.
Now another way of looking at the upmarket strategy and to compare the growth of the EBITDAR as with that of the -- actually the income from the Villages always so neutralizing the effects of the insurance settlements. Thus the revenue we had from the Villages has grown by EUR36 million and has generated EUR23 million EBITDAR based on a conversion rate which is nearly 60%. Or said more simply, EUR100 of supplementary revenue generates more than EUR60 EBITDAR in addition.
Now our growth is then very profitable. It's enough just to look at how we can accelerate this and our bookings for the Summer are very encouraging up to date. Now I would like to say Michel will be going into more details on this and I'm going to give Michel the floor.
MICHEL WOLFOVSKI, EXECUTIVE VICE PRESIDENT & CFO, CLUB MEDITERRANEE: Thank you very much, Henri. Good morning everybody. As you are now used to, I am going to deal with two subjects with you during this presentation. First of all we will analyze the financial results of the Winter 2007 and then give you the trends for the Summer.
Henri gave you the major figures for the Winter 2007 increased 1.3% of the revenues and like-to-like the revenues increased by 4%; 5.4% for the first quarter; 3.1% for the second quarter. And the EBITDAR level increased from EUR114 million for the Group in Winter 2006 to EUR124 million this last winter. So an increase in the operating income Leisure as well.
EUR4 million for the property profit; EUR22 million in 2006 thanks to the refinancing operations we had in the first half of 2006. Of course we want that operating income on the assets to be positive for 2007 and for 2008, 2009 we have trends that Henri is going to mention. And the operational result of the Group are EUR6 million thanks to the increase in the activities at the leisure -- of leisure and assets.
What are the major figures for our activities in the Club Mediterranee Group? We welcomed 800,000 clients during the last winter, a reduction by 3.7% compared with 2006. This winter 50% of the 606,000 clients of Club Med went into the 4-Trident villages compared with the 2005 winter they represented only 35% of the total, so an increase over two years of 41%, in other words 90,000 clients more in our 4-Trident villages. (inaudible) to activity as well the increase in the average price per client increased by 12% which reduced the decrease of our revenues to less than 3%.
Let's go back to Club Med now. The progression of the revenues per like-for-like for per day is 8.1% in each of the zones which means EUR10 per day. This is due to an increase in the village mix for EUR2, the impact of the Bar and Snacking Included EUR1.6, and the contribution of the a la carte Comfort EUR3 per hotel days. The number of hotel days sold is 3,761 very close to the winter of 2006 figures.
The number of clients was reduced by 2% but the number of hotel days only by 0.7%. The c
