Aucun titre de diapositive

1
Interim Results
June 11, 2004
2
Key figures for winter 2004

• Strong growth in operating income

(in millions of euros)
Like-for-like revenues
Operating income
very satisfied customers
4.5
Win 03 vs Win 02 10
Win 04 vs Win 03 9
32
784
764
750
12
(4)
Winter 02
Winter 03
Winter 04
Winter 02
Winter 03
Winter 04
Business model validated
1
1
3
Validation for the new business modelin America

• Club Med America actions undertaken are
  delivering results

(m)
Like-for-likerevenues
Operatingincome
Environment

• An improving economic and geopolitical environment

9.4
Club Med highlights
129

• Increased business

118
1) Success of the Total All Inclusive package 2)
Growth in direct sales and sales through travel
agencies 3) Impact of low prior-year comparatives
10
2
Winter 03
Winter 04
Winter 03
Winter 04

• Substantial increase in operating income

2
4
Validation for the new business modelin Asia

• Club Med Asia first positive impact from
  prior-year comparatives

(m)
Operatingincome
Like-for-likerevenues
Environment

• Economic upturn in certain markets
• Health situation under control

4.6
Club Med highlights

• First positive impact from low prior-year
  comparatives (Bali,SARS)? revenues up 25 YOY in
  April alone
• Increased sales in Japan, Australia
  andSingapore, and start-up of sales in China

66
63
3
0
Winter 03
Winter 04
Winter 03
Winter 04
3
5
Validation for the new business modelin Europe

• Club Med Europe firm resilience in a tough market

(m)
Operatingincome
Like-for-likerevenues
Environment

• No economic upturn in Europe
• Difficult economic conditions in France

Club Med highlights
425
425
19

• Sustained success of Ski packages
• In France increased sales through the new
  distribution channels ? Surge in Internet
  bookings? Success of the new indirect network
• Firm resistance from the Club Med agencies
• Decline in business from the traditional indirect
  network and via phone
• Improved resistance in the rest of Europe

14
Winter 03
Winter 04
Winter 03
Winter 04
4
6
Key figuresfor winter 2004
5
7
Key figures
Winter 03
Winter 04
(in millions of euros)
Winter 02

• Consolidated revenues
• Reported
• Like-for-like

785
784
816
765
784
750
12
32
Operating result
(4)
(29)
(4)
Group net result
(25)
Capital expenditures
(40)
(83)
(44)
Disposals
44
45
33
(6)
(33)
Free cash flow
6
(436)
(424)
Net debt
(421)
6
8
Activities
Winter 03
Variation
Winter 04
763,800

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

1.0
771,100
639,200
0.5
642,400
124,600
3.4
128,700
-0.7
Hotel days sold
4,012,000
3,984,000
-4.5
Capacity in hotel days
5,807,000
5,546,000
69.1
Occupancy rate
2.7 pts
71.8
Like-for-like revenues
2.4
765 m
784 m
Like-for-like revenues Stay / HD
5.9
104.4
110.6
7
9
Consolidated revenues

• Change winter 04 vs winter 03 2.4 on a
  like-for-like basis

(in millions of euros)
-6
25
-17
-3
785
(1)
(2)
(4)
(3)
784
Winter 04
(1)
(3)
Winter 03
(4)
(2)
8
10
Operating result by zone and business
(in millions of euros)
Winter 02
Winter 03
Winter 04
Europe
13
14
19
Asia
2
0
3
(13)
2
10
America

• Villages activity

2
16
32
Tour operating
(3)
0
1
Other activities
(3)
(4)
(1)

• Total Group

(4)
12
32
9
11
Analysis of results from Villages activity
(in millions of euros)
Winter 02
Winter 03
Winter 02
2
16
2
OPERATING RESULT
2
0
2

• Change impact
• Volume impact
• Mix/Price impact
• Others

(2)
(5)
(7)
10
22
32
4
(1)
3
16
32
32
OPERATING RESULT
Winter 03
Winter 04
Winter 04
10
12
Analysis of results in Europe
(in millions of euros)
Reported
Like-for-like
14
W.03 Op. result
Winter 03
Winter 04
430
429
Revenues

• Change impact
• Volume impact
• Mix/Price
• Others

0
(7)
234
234
Margin on var. costs
9
of revenues
54.4
54.5
3
(52)
(52)
Fixed selling costs
19
W.04 Op. result
(153)
Fixed operating costs
(155)
(13)
(10)
Overheads
14
19
Operating result
of revenues
3.3
4.4
11
Including interzone revenues
13
Analysis of results in Asia
(in millions of euros)
Reported
Like-for-like
0
W.03 Op. result
Winter 03
Winter 04
82
82
Revenues

• Change impact
• Volume impact
• Asia / AsiaEurope / Asia
• Mix/Price
• Others

1
0
46
47
Margin on var. costs
1
of revenues
56.1
57.3
(1)
3
(12)
(11)
Fixed selling costs
(1)
(29)
Fixed operating costs
(30)
3
W.04 Op. result
(4)
(4)
Overheads
0
3
Operating result
of revenues
0
3.6
12
Including interzone revenues
14
Analysis of results in America
(in millions of euros)
Reported
Like-for-like
2
W.03 Op. result
Winter 03
Winter 04
167
164
Revenues

• Change impact
• Volume impact
• America / AmericaEurope / America
• Mix/Price
• Others

(1)
2
98
99
Margin on var. costs
4
of revenues
58.7
60.4
(2)
10
(23)
(21)
Fixed selling costs
(3)
(66)
Fixed operating costs
(70)
10
W.04 Op. result
(3)
(2)
Overheads
2
10
Operating Result
of revenues
1.2
6.1
13
Including interzone revenues
15
Jet tours operating result
(in millions of euros)
Winter 02
Winter 03
Winter 04
119
128
133
Revenues
12.0
15.0
15.7

• Semi-net margin

10.1
of revenues
11.8
11.7
(14.2)
(14.8)
(14.8)

• Other costs

(2.2)
0.2
0.9
Operating result
14
16
Other activities operating result
(in millions of euros)
Operating result
Winter 04
Winter 03

• Club Med Gym
• Club Med World Paris
• Club Med World Montreal

0
(1)
(2)
(1)
N/A
(1)
15
17
Result statement
Winter 03
Winter 04
(in millions of euros)
785
784
Revenues
12
32
Operating result
(25)
(22)
Net financial expense
0
Net income from equity companies
0
(21)
(7)
Net exceptional expense
(2)
Taxes
10
(4)
(4)
Goodwill amortization
(1)
(1)
Minority interests
(29)
(4)
Group net result
16
18
Net financial expense
Winter 03
Winter 04
(in millions of euros)
(4)
(4)
Credit cards transaction fees
(13)
(13)
Interest expense
(2)
Others
(2)
(19)
(19)
Net financial expense excl. change impact
(6)
Realized unrealized exchange gains losses
(3)
(25)
Net financial expense
(22)
5.3
5.9
Cost of debt
454
Average debt
494
17
19
Result statement
Winter 03
Winter 04
(in millions of euros)
785
784
Revenues
12
32
Operating result
(25)
(22)
Net financial expense
0
Net income from equity companies
0
(21)
(7)
Net exceptional expense
(2)
Taxes
10
(4)
(4)
Goodwill amortization
(1)
(1)
Minority interests
(29)
(4)
Group net result
18
20
Balance sheet

04/30/03
04/30/04
04/30/03
04/30/04
(in millions of euros)

• Fixed assets
• Tangible assets
• Intangible assets
• Financial assets

Shareholders equity minority interests
568
475
901
773
73
66
Provisions
211
189
98
94
159
129
Working capital (1)

1,210
1,056
Total fixed assets
436
424
Net financial debt
26
38
Net deferred taxes
TOTAL LIABILITIES
1,094
1,236
TOTAL ASSETS
1,236
1,094
Gearing
77.0
89.3
(1) At 04/30/02 working capital was 127 m
19
21
Cash flow statement
Winter 03
Winter 04
(in millions of euros)
(10)
Cash flow
28
(4)
Change in working capital
(50)
4
Change in provisions
0
(10)
Funds from operating activities
(22)
(40)
Investments
(44)
Disposals and others
44
33
(6)
Free Cash Flow
(33)
(9)
Change impact and others
(2)
(15)
Cash variation
(35)
20
22
Outlookfor summer 2004
21
23
Summer 2004

• Capacity by zone

Variation
Sum. 04
Sum. 03
(in thousands of HD)
5,867
5,705
Europe Asia America
2.8
-2.6
961
987
-13.6
1,447
1,675
-1.1
8,275
8,367
TOTAL WORLDWIDE
22
24
Summer 2004

• Capacity by category

Sum. 04
Sum. 02
Sum. 03
(capacity in )
2 Tridents 3 Tridents 4 Tridents Cruise ships
villas
18
27
21
63
57
59
18
14
18
1
2
2
TOTAL
100
100
100
Further improvment in the product mix
23
25
Summer 2004

• Summer 2004 bookings (vs summer 2003), at May 29,
  2004

Over the last four weeks
Cumulative,at May 29, 2004
Like-for-like revenues
Europe
-9.3
-2.1
5.6
America
29.1
63.2
Asia
34.7
Total Club Med
2.4
-1.6
Jet tours
5.2
4.4
24
26
The benefitsof moving up market
25
27
The benefits of moving up market

• A village portfolio now ready to move upmarket

1998 2003 2005 huts and 2T 34
19 9 3 and 4T villages 66 81 91
In number of beds
A clarified, consistent offering
26
28
The benefits of moving up market

• A profitable business model, value-driven
  instead of volume-driven

Village profits
Selling price
Costs
Very satisfied GMs(basis 100 index)
100
117
148
Comfort level
2 ?
3 ?
4 ?
An upmarket strategy,combinig high margins and
satisfied customers
27
29
The benefits of moving up market

• The Club Med brand the basis of an intense
  customer relationship

• The higher people move uprange, the more they
  are attached to the brand
• A very high percentage of customers say theyll
  come back 85
• The more demanding the customers, the stronger
  their attachment

A strong brand that creates high expectations
(Source Sorgem Fonds de Marque France, Italy,
USA January 2004)
28
30
The benefits of moving up market

• The strength of the Club Med brand the example
  of France

Competitioncustomers
Club Medcustomers
Criteria for choosing a vacation club

• Reputation 43 (no.1) 21 (no.4)
• Destinations 35 (no.2) 37 (no.2)
• Type of stay 21 (no.3) 10 (no.6)
• Organization 20 (no.4) 17 (no.5)
• Activities 19 (no.5) 6 (no.7)
• Price 16 (no.6) 44 (no.1)

Club Med, a differentiated positioning
(Source UA NFO Sofres France, Summer Villages
February 2004)
29
31
What will Club Medbe like tomorrow?
30
32
Clear, identified expectations

• Vacations are critically important for our
  current and potential customers

• Substantial financial investment 1 month of
  salary (France)
• Psychological investment - a time of sharing
  for families- just one week of vacation (USA)
• An investment indicative of social status (Italy)

Vacations are  a rare occasion, when quality
counts 
31
33
Clear, identified expectations

• Expectations of customers who like Club vacations

More human, more personal style

• More personalization
• More services and organizational flexibility

More innovation and higher quality

• More innovative activities
• Greater balance between sports and
  cultural/artistic activities

More open to and integrated into the local
environment

• A club thats more open to the outside world
• Also, the local culture is better integrated
  inside the Club

(Source NFO Extra Tout Compris study France,
Italy, Netherlands July 2003)
32
34
What will Club Med be like tomorrow?
Club Med, a unique positioning
 FRIENDLY UPMARKET 
33
35
What will Club Med be like tomorrow?

• Moving the village portfolio faster upmarket in
  04/05

• Cherating Beach upgraded from 3 to 4 Tridents
• El Gouna opening as a 3 Tridents
• Marrakech - opening of la Palmeraie as a 4
  Tridents - Médina upgraded from 3 to 4
  tridents - creation of Riad
• Sant Ambrogio upgraded from 2 to 3 Tridents
• Coral Beach reopening after top-to-bottom
  renovation
• Turquoise rooms renovated village center
  redecorated
• Chamonix upgraded from 3 to 4 Tridents
• Val dIsère entirely restyled 4 Tridents
• Pesey Nancroix opening as a 4 Tridents

A strategic evolution of Club Med to upmarket
34
36
What will Club Med be like tomorrow?

• Heading for incomparable

• Three-year marketing agreement with Star
  Airlines - Highly quality standards, -
  personalized service, - modular purchase of a
  volume of hours, - exclusive airports package.
• Revamping purchasing process
  
  -
  target of around 30 million in 2006, partially
  reinvested in customer services
• Motivated GOs going upmarket is everybodys
  business

a comprehensive approach to moving upmarket
35
37
Conclusion
By being the uncontested leader in friendly
upmarket all-inclusive vacations, with a
profitable business model, the strategy of moving
upmarket has redefined an incomparable Club Med
that creates value
a confirmed target around 100 million euros in
operating income in 2006
36
38
Appendices

• Activities
• Number of Club Med customers by issuing countries
  - winter
• Reported revenues by zone activity
• Like-for-like revenues by zone activity
• Capacity and occupancy rates by zone
• Results
• Profit loss account from Villages activity
• EBITDA / EBITDAR
• Capital expenditure

37
39
No. of Club Med customers by issuing
countries-Winter
(in K customers)
1999
2000
2001
2002
2003
2004
France
251
287
323
270
266
262
Belgium
49
51
54
47
47
45
Italy
22
21
18
16
17
19
Switzerland
14
15
15
13
12
11
Germany
24
25
24
21
18
16
Netherlands
18
21
20
18
17
16
Great Britain
14
14
12
12
10
13
Israel
17
17
15
11
11
19
Others
17
21
20
12
16
22
TOTAL Europe
426
508
432
415
406
472
Japan
26
41
41
44
45
47
Australia
16
18
17
11
10
11
Singapore
7
8
9
8
6
10
Korea
5
8
9
11
7
7
Others
19
22
22
10
9
10
87
TOTAL Asia
79
103
105
90
81
USA - Canada
107
111
115
82
88
91
Argentina
3
9
9
4
4
7
Others
9
3
3
2
1
1
TOTAL America
165
166
169
125
143
149
WORLDWIDE
670
741
782
647
639
642
38
40
Reported revenues by zone activity
(in millions of euros)
Other activities 3.8
TO 17.0
vs 4.0 in 03
vs 16.3 in 03
France 34.7
30
133
vs 36.4 in 03
Asia 8.5
272
67
vs 8.1 in 03
129
153
America 16.5
Rest of Europe 19.5
vs 12.6 in 03
vs 22.6 in 03
Total winter 2004 revenues 784 millions
39
41
Like-for-like revenues by zone activity
Winter 03
Winter 04
Variation
(in millions of euros)
425
425
-
Europe Asia America
64
67
4.6
118
129
9.4
607
621
2.3
Villages activity
Tour operating Other activities
128
133
3.3
30
30
0.9
765
784
2.4
Group
40
42
Capacity and occupancy rates by zone
Winter 03
Winter 04
(in K units)
Europe Capacity Occupancy rate
3,040
2,901
76.4
78.2
Asia Capacity Occupancy rate
915
869
50.2
54.0
America Capacity Occupancy rate
1,852
1,776
66.3
70.1
TOTAL Capacity Occupancy rate
5,807
5,546
69.1
71.8
41
43
Profit loss account from Villages activity
Winter 02
Winter 04
Winter 03
(in millions of euros)
655
620
Revenues
624
396
381
Margin on variable costs
378
of revenues
61.4
60.5
60.6
(101)
(85)
Fixed selling costs
(87)
(248)
Fixed operating costs
(267)
(255)
(26)
(16)
Overheads
(20)
2
32
OPERATING RESULT
16
of revenues
5.2
0.3
2.6
42
44
EBITDA / EBITDAR
(in millions of euros)
Winter 2002
Winter 2003
Winter 2004
(4)
12
32
Operating result
47
42
36
Amortization
0
(2)
Others
(4)
39
54
66
EBITDA
of revenues
8.4
6.9
4.8
51
50
51
Rents
90
104
117
EBITDAR
11.0
of revenues
14.9
13.2
43
45
Capital expenditure
Winter 2003
Winter 2004
(in millions of euros)

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

26
38
7
4
7
2
40
44
Total

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

(44)
(33)
(11)
(26)
(26)
-
(7)
(7)
44