Aucun titre de diapositive

1
Shareholders MeetingMarch 17th, 2003
2
The tourist industry in 2002
3
The tourist industry in 2002

• A difficult business environment

• Sustained fall-out from 9/11
• Terrorist attacks at major tourist destinations
  Djerba, Bali, Kenya
• A global economic slowdown

BUT

• A market that is fundamentally trending upwards

• 1950 25 million tourists
• 1980 300 million tourists
• 2000 700 million tourists
• 2020 1.6 billion tourists

4
Rebound Plan objectives met
5
Rebound Plan objectives met

• Adapt the Village offer and reduce costs

• Adjusting capacity to market conditions
• Upgrade the Village portfolio
• Improved mix price
• Fixed costs reduce by a recurring 30-40 million
  a year
• Capex reduction

• a 11.7 reduction in capacity vs 2001
• Opening of 3 Three-Trident Villages
• Permanently close of 7 Two-Trident Villages
• 42 m improvement in mix price in
  2002
• 48 million in savings in 2002
• Cut from 239 million to 151 million

6
Rebound Plan objectives met

• Break even in the America in 2004

• In terms of capacity and quality
• 18 capacity cut
• All villages have been renovated
• Growth in revenues from the 3,000 TAs gt average
  growth in US business
• Recurring savings 18 million
• 28 reduction in non-Village staff compared with
  April 2001
• Lower fixed costs

• Adapt the offer
• Revitalize indirect distribution
• Reducing costs

7
Rebound Plan objectives met

• Improve margins at Club Med World

• Operating costs under control
• Operating income 2 million higher than in 2001
• Efforts to be continued

• Club Med World Paris
• Upgrade food services
• Specially train for food services team
• Optimize process

8
Rebound Plan objectives met

• Return Jet tours to profit en 2003

• Market share gains 2 pts
• Partnership with distribution networks
• Effective ad campaign
• Repositioning in the mid-upper range, with 70 of
  the offer rated luxury or better
• Workforce cut by 12.5
• Lower overheads -7.4
• Greater negotiating power for air transport and
  incoming resources thanks to synergies with Club
  Med

• Step up marketing and sales drive
• Redeploy the brand
• Enhance product offering
• Lower breakeven point

9
Key figures for fiscal 2002
10
Key figures
10/31/01
10/31/02
(in millions of euros)
1,985
1,744
Consolidated revenues
50
(3)
Operating income (loss)
(70)
(62)
Group net income (loss)
151
Capital expenditure
239
(52)
(12)
Free cash flow
(396)
(421)
Net debt
11
Activities
10/31/01
change
10/31/02
2,052,800

• Number of customers
• incl. Club Med customers
• incl. Jet tours customers

-11.7
1,811,000
1,782,300
-13.9
1,534,000
270,000
2.6
277,000
-11.7
16,922,000
Capacity in hotel days
14,941,000
-15.4
Hotel days sold
12,184,000
10,309,000
Occupancy rate
72.0
-3.0 pts
69.0
12
Consolidated revenue

• Change 2002 vs 2001

13
Operating income by zone and business
2002
2001
O/w sum.
O/w sum.
(in millions of euros)
F. year
F. year
Europe Africa
39
74
26
43
Asia
6
16
4
7
(41)
(34)
Americas
(28)
(33)

• Core Business subtotal

4
56
2
17
Tour Operating
(1)
(3)
2
1
Other BUs
(6)
(3)
(3)
(2)

• Total Group

(3)
50
1
16
14
Analysis of results from the core business
Full year 2002
(in millions of euros)
56
Operating income at 10/31/01

• Change impact
• Volume impact
• Mix Price effect
• Variable margin effect
• Rebound Plan Recurring Temporary
• New Capacity
• Assets disposals and rents effects
• Non-recurring

(1)
(158)
39
12
80
48
32
(15)
(5)
(4)
4
REX 2002
15
Income statement
10/31/01
10/31/02
(in millions of euros)
1,985
1,744
Revenues
50
(3)
Operating income (loss)
(33)
(32)
Net financial expense
0
Net income from equity companies
0
(71)
(8)
Net exceptional expense
(8)
(10)
Goodwill amortization
(6)
Tax
(6)
(2)
(3)
Minority interests
(70)
(62)
Group net income (loss)
16
Balance sheet

10/31/01
10/31/02
10/31/01
10/31/02
(in millions of euros)
Tangible intangible assets
Shareholders equity and minority interests
1,262
1,180
754
631
Financial assets
92
105
186
113
Provisions
18
120
Working capital
Net debt
396
421
1,354
1,285
1,285
1,354
Gearing
53
67
17
Capital expenditure
10/31/01
10/31/02
(in millions of euros)

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

132
110
24
16
83
25
239
151
Total

• Disposals
• Deconsolidation
• Sale and leaseback of the buildings

(118)
(71)
(20)
(61)
(98)
(10)
18
Cash flow statement
10/31/01
10/31/02
(in millions of euros)
17
Cash flow
34
29
Change in working capital
112
23
Change in provisions
(78)
69
Funds from operating activities
68
(239)
Capital expenditure
(151)
Disposals
118
71
(52)
Free Cash Flow
(12)
19
Outlookfor winter 2003
20
Winter 2003

• Winter offer is still diversified

76 VILLAGES OPENED THIS WINTER
21
Winter 2003

• Capacity by zone an offer adjusted to market
  conditions

Vs 2001
Vs 2002
Winter 03
(in thousands of hotel days)

• Europe
• Ski
• Sun
• Asia
• Americas

-8,5
0,0
3,091
8,1
-1,3
1,622
-21,7
1,7
1,469
-23,0
-5,4
912
-17,1
2,8
1,864
TOTAL WORLDWIDE
-13,9
0
5,867
Trancoso opened in Brazil only in December
22
Winter 2003

• Capacity by category upgrade the Village
  portfolio

Winter 03
Winter 02
Winter 01
(capacity in )
Cruise ships and villas
10
14
15
55
54
55
31
29
26
4
3
4
TOTAL
100
100
100
23
FILM DE LANNEE 2001POURSUITE DE LA STRATEGIE

1st QUARTER 2003 REVENUES

• First quarter 2003 Revenue 7,6 comparable

Millions of euros
Worldwide (including Jet Tours)
0.8
340
337

• Revenues

340
316
7.6

• Comparable revenues

Comparable scope of consolidation and exchange
rates
24
Winter 2003

• Winter 2003 bookings (vs winter 2002)
• (March 8th, 2003)

Worldwide (incl. Jet tours)
3,5

• Revenues
• Number of customers
• Contrasted situation among business units

0,6

• The American zone and Jet Tours revenues progress
  slightly over 10

25
Club Meds competitive strengths
26
Club Meds competitive strengths

• 5 years of capital expenditure in Core Business
  Activity

• Villages renovation 350 million (73 Villages
  renovated in four years)
• Upgrading information systems (booking and
  management) 56 million
• An enhanced Village experience infrastructure,
  new activities,

• Improve satisfaction indexes 6 pts increase
  in very satisfied customers

• Sharp improvements in satisfaction with- Food
  and food services- GOs- Baby Clubs

27
Club Meds competitive strengths

• Villages a vacation experience widely recognized
  as unlike any other

customers commentsSource Millward Brown
Allows me to play a lot of sport Enables me to
discover new activities Offer fitness/massage
programs Appeals to singles/young
people Appeals to children Helps me to get
back into shape, to feel good again
28
Strategic priorities
29
Eliminate sources of losses

• Achieve breakeven in the Americas in 2004

• 2003 impact of measures taken in 2002- Massive
  18 reduction in unprofitable capacity- Lower
  fixed costs, generating 25 million in recurring
  savings compared with 2001- First results from
  demand stimulation programs ? Cumulative
  bookings for winter 2003, to date gt 10
• 2003 actions undertaken for summer 2003- First
  adaptation of the product to the US market

• Club Med World Montreal closed on March 4th, 2003

30
Deliver a comprehensive, consistent offer (the
French example)

• Club Med Jet toursA combined Tourism offer

• An alternative offer of closely related products
• Strenghtened joint distribution, notably in the
  French provinces
• Proposed merger of Club Med and Jet tours sales
  forces
• Shared transportation procurement and allocation
• Development of shared incoming resources

31
Leverage new sources of growth

• In priority countries in Europe focus on gaining
  new market share

• Belgium, Italy, Switzerland

• In rest of the world

• Enhanced presence in high-potential issuing
  countries
• Brazil open third village, Trancoso
• China Open first sales office in Shanghai
• South Korea Open second sales office in Pusan

32
Use the product to add value to the brand

• with a new ad campaign

• A campaign that differentiates Club Med from its
  competitors
• A campaign that enhances our brand identity ?
  by promoting the Club Med experience ? by
  showcasing people who go to Club Med
• A campaign that emphasizes our products value
  proposals

33
INCOMPARABLE CLUB MED
34
Appendices

• Activity
• Key figures by season
• Statistics by season
• Number of GM by issuing countries
• Reported revenue by zone and activity
• Like-for-like revenue by zone and activity
• Number of beds by type of operation
• Capacity and occupancy rates by zone
• Incomes
• Like-for-like operating income by zone
• EBITDA / EBITDAR
• Analysis of debt at year end

35
Key figures by season
Full year
Summer
Winter
2001
2002
2001
2002
2001
2002
(in millions of euros)
1 985
1 744
1 027
928
958
816
Published revenue Capital expenditure Disposals
(239)
(151)
(122)
(68)
(117)
(83)
118
71
104
26
14
45
50
(3)
16
1
34
(4)
Operating income Net income
(70)
(62)
(76)
(37)
6
(25)
(396)
(421)
(396)
(421)
(382)
(392)
Net debt (end of period) Free cash flow
(52)
(12)
(27)
(18)
(25)
6
Including Gymnase Club for 42 M
36
Statistics by season
Full year
Summer
Winter
2001
2002
2001
2002
2001
2002
(in K units)
1,782
1,534
1,000
887
782
647
Club Med customers Jet tours customers
271
277
143
158
128
118
2,053
1,810
1,143
1,045
910
765
Total Customers Hotel days sold Average
stay Capacity in HD Occupancy rate Travelling
GM travelling GM
12,184
10,309
7,211
6,194
4,973
4,017
6.80 j
6.66 j
7.16 j
6.99 j
6.35 j
6.21 j
16,922
14,941
10,109
9,077
6,813
5,864
72.0
69.0
71.4
69.0
73.0
69.1
929
761
555
486
374
275
52.1
49.6
55.6
54.8
47.8
42.5
37
Number of GM by issuing countries
1999
2000
2001
2002
(in K GM)
France
616
694
758
656
Belgium
107
113
122
108
Italy
95
104
93
87
Switzerland
46
50
48
41
Germany
50
54
51
40
Holland
35
40
40
36
Great Britain
37
37
35
32
Israel
44
33
43
24
Turkey
18
18
14
14
Austria
11
12
14
8
Spain
11
11
10
7
Russia
5
8
8
7
South Africa
6
5
6
6
Greece
3
5
6
5
Others
20
15
17
20
TOTAL EUROPE AFRICA
1,104
1,199
1,264
1,090
USA - Canada
168
176
180
142
Mexico - Caribbean
31
26
24
14
TOTAL NAM
199
202
204
157
Japan
95
99
66
96
Australia
34
34
33
26
16
22
Malaysia
20
20
17
18
Singapore
14
18
15
20
24
24
Corée
Others
40
45
40
25
212
TOTAL ASI/PAC
185
231
234
76
TOTAL SAM
82
78
80
GROUP
1,570
1,710
1,782
1,534
38
Reported revenues by zone and activity
(in millions of euros)
Other activities 4.0
TO 16.0
Vs 2.1 in 01
Vs 14.1 in 01
France 34.1
69
279
Vs 33.6 in 01
595
Asia 10.1
176
Vs 11.2 in 01
220
405
Americas 12.6
Rest of Europe 23.2
Vs 16.1 in 01
Vs 22.9 in 01
Total 1,744 million euros in 2002
39
Like-for-like revenue by zone and activity
Changes 2002 vs 2001
Sum.
02 vs 01
Winter
2001
2002
(in millions of euros)
-8.9
-10.4
-13.1
1,116
1000
Europe Asia Americas
-13.3
-14.2
-15.2
205
176
-17.2
-26.8
-31.0
301
220
-10.4
-13.9
-17.5
1,622
1,396
Core business
Tour Operating Other activities
7.0
-0.7
-8.6
281
279
9.9
2.4
0
42
43
-7.3
-11.6
-16.2
1,945
1,718
Group
Without winter revenue of Gymnase Club 26 M
40
Number of beds by type of operation in 2002
Management contracts
Owned
Partners
Leased
Total
(in number of beds)
Europe
19,890
8,605
25,851
2,225
56,571
Asia
1,140
1,445
1,853
745
5,183
Americas
4,909
1,520
3,055
974
10,458
Total
25,939
11,570
30,759
3,944
72,212
of total
35.9
16.0
42.6
5.5
100
For information, in 2001
of total
42.8
16.8
35.6
4.8
100
41
Capacity and occupancy rates by zone
Full year
Summer
Winter
2001
2002
2001
2002
2001
2002
(in K units)
Europe Africa Capacity Occupancy rate
10,346
9,622
6,966
6,534
3,380
3,088
79.5
75.0
78.5
72.9
81.6
79.4
Asia Capacity Occupancy rate
2,438
1,919
1,253
955
1,185
964
56.0
57.2
56.4
60.8
55.6
53.7
Americas Capacity Occupancy rate
4,138
3,400
1,890
1,588
2,248
1,812
62.7
58.8
54.9
57.6
69.2
59.8
TOTAL Capacity Occupancy rate
16,922
14,941
10,109
9,077
6,813
5,864
72.0
69.0
71.4
69.0
73.0
69.1
42
Like-for-like operating revenue by zone
Full year
Summer
Winter
2001
2002
2001
2002
2001
2002
(in millions of euros)
Europe Africa
74
39
43
26
31
13
Asia
16
6
7
4
9
2
Americas
(34)
(41)
(33)
(28)
(1)
(13)
56
4
17
2
39
2
Core business
43
Analysis of results in Europe
o/w Summer
(in millions of euros)
Full year
74
43
Op. inc. 10/31/01
10/31/01
10/31/02
1,141
1,006
Revenues

• Change impact
• Volume impact
• Mix Price
• Variable margin
• Rebound Plan Recurring Temporary
• Disposals effect(1)
• Adjust. capacity

5
6
(87)
(49)
598
556
Margin on var. costs
42
17
of revenues
52.4
55.3
5
4
(126)
(122)
Fixed selling costs
20
11
7
4
(373)
Fixed operating costs
(375)
13
7
(5)
(4)
(23)
(22)
Overheads
(15)
(2)
74
39
Operating income
of revenues
6.5
3.9
39
26
Op. inc. 10/31/02
(1) Sale and leaseback
44
Analysis of results in Asia
o/w Summer
(in millions of euros)
Full year
16
7
Op. inc. 10/31/01
10/31/01
10/31/02
257
208
Revenues

• Change impact
• Volume impact
• Mix Price effect
• Rebound Plan Recurring Temporary
• Non-recurring(1)

(1)
(1)
(24)
(10)
137
108
Margin on var. costs
1
(1)
of revenues
53.3
51.9
18
9
(32)
(27)
Fixed selling costs
16
9
2
0
(68)
Fixed operating costs
(86)
(4)
0
(3)(1)
(7)
Overheads
6
4
Op. inc. 10/31/02
(1)reversal of Faru provision in winter 2001
16
6
Operating income
of revenues
6.2
2.9
45
Analysis of results in America
o/w Summer
(in millions of euros)
Full year
(34)
(33)
Op. inc. 10/31/01
10/31/01
10/31/02
400
282
Revenues

• Change impact
• Volume impact
• Mix Price effect
• Variable margin
• Rebound Plan Recurring Temporary

(5)
(3)
(47)
(4)
221
164
Margin on var. costs
(4)
(3)
of revenues
55.3
58.1
7
4
(58)
(52)
Fixed selling costs
42
11
25
5
(141)
Fixed operating costs
(180)
17
6
(17)
(12)
Overheads
(41)
(28)
Op. inc. 10/31/02
(34)
(41)
Operating income
of revenues
-8.5
-14.5
46
Analysis of debt at year-end
10/31/01
10/31/02
(in millions of euros)
Bonds with equity warrants OCEANE Fixed-rate
capital leases Fixed-rate long-term borrowings
(128)
(128)
-
(142)
(16)
(13)
(38)
(23)
(182)
(306)
Total fixed-rate debt
46
73
Variable-rate capital leases Variable-rate
long-term borrowings Medium and short-term debt
(63)
(50)
(23)
(8)
(128)
(57)
(214)
(115)
Total variable-rate debt
54
27
(396)
(421)
TOTAL DEBT
Bonds convertible and/or exchangeable into new
or existing shares
47
EBITDA / EBITDAR
(in millions of euros)
2001
2002
50
(3)
Operating income
88
92
Amortization
138
89
EBITDA
of revenues
5.1
7.0
99
118
Rents
237
207
EBITDAR
of revenues
11.9
11.9
48
(No Transcript)