FIRST From 1stOctober 2005to 31st March2006 - HALF HALF 2005/2006 RESULTS
8 June 2006 - 1 Strategy and development and Strategy targetand forthefull second Outlook for the First & Group Vacances Pierre
- half half results 2005/2006 - year year 2005/2006 - half half
–
key figures key
Contents
8 June 2006 - 2 8,600employees(FTE) 6.4customers million (35,000in France) andhomesEurope in 45,000apartmentsholiday Keyfigures for the 2004/05 financial year 6 segmented brands
-
a majorplayerin European tourism Attributablenetcurrent income: Turnover: Currentoperatingincome: Consolidatedfigures (IFRS) € 1,231m Pierre & Vacances Group Pierre &Vacances
€
74.8m
€ 41.6m
8 June 2006 - 3
not not in the 2nd quarter this year. financial fell holidaysand in the weekend 3rd quarter and business, the amplified byfact that the Easter Interim reflectingresults seasonal nature of current operating income to around Target for 27%growth in full full - yearcurrent operatingincome 2005/2006 Interim Interim results and - year 2005/2006 year2005/2006 € 95 million.
target for
8 June 2006 - 4 From 1stOctober 2005to 312006 March First - half 2005/2006 results
8 June 2006 - 5 (1)
in € On a like m H12004/05
534.6 235.2 119.9 179.5 - for - like basis and adjusted for the shift in the Easter holidays and weekend (1)
+0.1% (1)
H12005/06 611.3 185.5 229.5 196.3 First
- half turnover 2005/2006 MGM / Hôtels Latitudes Maeva / Résidences Pierre / & Vacances Center Parcs Europe Property Development
8 June 2006 - 6 (1) Hôtels Latitudes Maeva / Résidences MGM / exceptional closing at Center Parcs Europe On a like
Center Center Parcs Europe Pierre & Vacances / - for - like basis, adjusted for the shift in the Easter holidays and weekend and
o/w othero/w turnover accommodationo/w Turnover: o/w other turnover +2.0% o/w accommodation +4.4% Turnover:
Turnover tourism from € € 229.4m 185.5m +3.4% First
- -
- 1.4% 1.0% - half 2005/2006
0.6%
(1) (1)
8 June 2006 - 7 New properties New Others Vars Bonmont Châteaud'Olonne Port-en-Bessin LeRouret Village Ailette Center Parcs € 196.3m of 196.3mturnover, up 63.7% Turnover property from development 15.7 25.2 80.2 6.5 5.2 8.7 9.3 9.6 Others properties Renovated Otherrenovated Avoriaz Saint-Laurent-du-Var RouretResidence Charmettoger Arcs Les Haussmann Flaine Tour Paris Eiffel First
- half 2005/2006
104.9 11.2 20.7 10.0 12.0 32.1 6.4 7.1 7.6 9.0
8 June 2006 - 8
instead of the 2nd quarter. holidaysEaster andweekend fell in the 3rd quarter … amplified this financial yeargiven that linear basis over … 40%of turnover booked in the first Seasonal tourism natureof turnover (on average
whereas whereas fixed operating costs arebooked on a
Interim Interim earnings structurallyin the red due to 12 months… seasonal nature of tourism business of tourism nature seasonal
- half) … that the
8 June 2006 - 9 in - 31.3 € m
weekend ( (*) primarilydue to the shif in the Easter holidaysand H1 2004/05 +19.0 -34.1 - +2.8 12.3 business completely made up for in April
- 36.9 Breakdown of current operating result
H1 2005/06 +23.3 - - 13.6
-28.4 8.5
(*)
)
MGM / Hôtels Latitudes Maeva / Résidences Pierre / & Vacances Center Parcs Europe Property development
8 June 2006 - 10 Attributable net result result net Attributable expenseoftaxand income net operating Other result current net Attributable interests Minority affiliates ofequity Results tax income Corporate expenses Financial result operating Current Turnover in € m
Net current result: Netcurrent result: 2005/06 611.3 -18.9 -14.0 -13.6 -4.9 -0.1 -4.0 0.1 3.6 H1 -
2004/05 € 14.0m 14.0m 533.8 -10.3 -12.4 -12.3 -0.1 -5.1 2.1 0.2 4.9 H1
8 June 2006 - 11 and target for the full Outlook for the second - year 2005/2006 - half
8 June 2006 - 12 Hôtels Latitudes Maeva / Résidences MGM / Rise in summer tourism reservations (1) Afterrestatement of the impact of the shif in the Easter holidaysand weekend
Center Center Parcs Europe Pierre & Vacances /
German,French andBelgian) In allsegments(Dutch, client non Stabilizingbusinesswith (internet+88%) In allchannels direct schoolholidays) In all(shoulder periodsseason, In alland seaside citydestinations - French customersFrench (1)
Second
-
half 2005/2006
8 June 2006 - 13 € Excellent performance in propertybusiness 450m(incl. VAT)
estimated 2005/2006reservedturnoverof around Surgeforecast turnover in the for second
- half Second
- half 2005/2006
8 June 2006 - 14 € current operating profit: 95m (+27%)
Target for 2005/2006 Targetfor FY 2005/06current operatingincome
programme (+ programme Effectivesavings of cost materialisation activities propertydevelopmentRobust divisionsEuropeCenter Parcs and HôtelsLatitudes/ MGM Résidences & VacancesPierre Maeva / / both the inbookings in Growth tourism € 22m)
8 June 2006 - 15 Strategy and development
8 June 2006 - 16 Résidences MGM / Hôtels Latitudes I. Pierre &Vacances / Maeva /
8 June 2006 - 17 approach Brand positioning/client Marketing efficiency 500action plans and beingimplementedidentified More than100staff involved 14 projects
New organisation New
Development Cost savings DEFI 2006/07 project DEFI 2006/07
8 June 2006 - 18 Latitudes P&VCity Résidences MGM Maeva & VacancesPierre Brand business units business Brand
Tourism Organisation Organisation bybrand, with shared -
France Support services Support centres skill Marketing Human resources management Human resources Individual investor relation management relation customer management E Revenuemanagement Sales management
- Commerce Commerce Qualityand development –
skill skill centres
8 June 2006 - 19 specific to each brand Marketing and operating means
Level of comfort Bolstering brand positioning
8 June 2006 - 20
campaigns more efficient differentiated price policy targeted approach knowledge under more
Making promotional Implementing a more Exploiting customer
indirectimpact ofspecialoffers Systematicmeasuringof anddirect characteristicsofoffering Seasonalnature, … animationplan,loyaltycustomer Clientdata base,dynamic
Better customer approach Better customer
8 June 2006 - 21 account account policy international sales profitable and making other turnover
Developing on Implementing a key Developing Developing direct sales
- site sales
Improving Improving marketing efficiency catering,ski equipmentetc. rental, Vendingmachines,outsourcing, operators,localauthorities With main intermediaries:tour ExpandingCityleisureoffering Europe SynergiesCenterwith Parcs tour operators Bolsteringwithbusinessonline Developingdirect sales Internet accommodationturnoverfrom Target to derive17%of 2006/07
8 June 2006 - 22
jobs automatic methods and making certain politique politique key of rents
Mettre enoeuvre une Co Improving operating Optimising purchases ntrolling the level
- account
€ 7m of cost savings in 2005/06
Evolutionof yieldsfor investors management co humanresources, Poolingregionalaccounting, specifications… Contractrenegotiations, revisiting - ownership,centralisingpay …
Costmanagement
8 June 2006 - 23 under under management by 2009 Target: 5,000 apartments within 5/7 years Target: 35 residences Priorities Pierre & Vacances Développement France et International Set Mediterranean basin
Other Other countries in Spain European regional cities France - up of
studies Morocco: preliminarycontactsand Soldel Port Aventura,Costa Brava,Costa Paris, Lyon,Marseille,Strasburg Brussels,Milan, Basel, Allregions French
Stepping up expansion
8 June 2006 - 24 Projects in the short term Bénodet,La Mongie,Le Pedrouat Font Les Bruyèreshotelat MénuiresLes LesMéribel,Ours Blanc Crêtsat at Alpe d’Huez Thémis andNéréidesat BellePlagne RondPointPistes,des LaDaille A et BatValD’Isère First residences to be renovated Pursuing intensive acquisition policyof Other ongoingprojects (131apartments) Finalizingthe negociationof the take over2mountain of residences - half 2005/06: acquisition of 1,260 apartments
- Romeu… Stepping up expansion
8 June 2006 - 25 II. CenterParcs Europe
8 June 2006 - 26 offering offering offering/production
Catering Rounding out leisure Segmentation of
Adaptingconceptsandprices seniors kids,teens, sports/discovery, sport, relaxation,environment Bycustomer demand: children, Bycategory3,4,5 Adapting product offering
8 June 2006 - 27 turnover of 2006/07 accommodation product focused on wealth of
Advertising campaign Internet Internet sales target: 30% Change in price policy
Bolstering marketing and distribution
spenddestined for internet Increaseinof share advertising brochurestoursandvirtual charter,navigation tools, online bookingNewgraphicssystem, reducingdiscounts increasingoccupancyrates and In certain periods,lower => prices Incentivesfor bookingsearly newsletter… Multimedia:Radio, TV, Internet,
8 June 2006 - 28 programme
Bolstering Bolstering loyalty Increase in B Conquering new Extending partnerships
- to - B sales
markets markets Bolstering marketing and distribution
andincrease inoffered services Simplificationof entryconditions Bolsteringsalesteams inBenelux Scandinavia,CentralEurope Bookit OnlinetourLastminute, operators: Ikea…
8 June 2006 - 29 byregion centralise support services more flexible
Further movesto Making other activities Savings onpurchases
€ 15m of cost savings in 2005/06
services contractsservices Maintenancecosts: reviewof publishing,brochures… Salescosts: agencies, media, maintenance,logistics Cashmanagement, centers,call store openingtimes etc Dependingon period,catering, …
…
Costcutting
8 June 2006 - 30 development existing villages Center Parcs in France
Projects for future Project to extend Expansion of
BelgiumandGermany Netherlands(650cottages) Belgium,Germany and 820cottages, set to openin 2010 Project villagein for Moselle 200cottages late 2007 2006/early Extensionof Bois Francs 840 Domainedu lacd’Ailette
cottages ,
to openinbe 2007 Future development
8 June 2006 - 31