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Presentation of results 2007/2008 December 17, 2008. Contents. Compagnie des Alpes at December 15, 2008 Results of fiscal year 2007/2008 Review of 2008 and outlook for 2009 Strategic trends. CDA, the European leader in leisure production. Two business lines

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presentation of results 2007 2008 december 17 2008
Presentation of results 2007/2008 December 17, 2008

Compagnie des Alpes - La Compagnie des Alpes au 15 décembre 2008 - 1

contents
Contents
  • Compagnie des Alpes at December 15, 2008
  • Results of fiscal year 2007/2008
  • Review of 2008 and outlook for 2009
  • Strategic trends

Compagnie des Alpes - Compagnie des Alpes at December 15, 2008 - 2

cda the european leader in leisure production
CDA, the European leader in leisure production

Two business lines

  • Ski areas (N°1 World): 60% of sales
    • Operates 17 ski areas, with a controlling interest in 11
    • 13.7 million skier days in those 11 ski areas (17.3 million for all 17 ski areas)
    • 3 countries: France, Switzerland, Italy
  • Leisure parks (N°4 Europe): 40% of sales
    • 21 parks
    • 9.5 million visitors
    • Leader in 3 countries: France, the Netherlands, Belgium

A balanced model with growth prospects

  • Diversification of risks
    • Wide geographic distribution of sites and customers
    • Softening of weather uncertainties
    • Business spread over the entire year
  • Added growth factors
    • Annual sales growth over last 5 years: +10% for ski areas, +15 % for leisure parks
    • CDA Group has the capacity to be a major player in the consolidation of its two business lines

Compagnie des Alpes - Compagnie des Alpes at December 15, 2008 - 3

2007 2008 cda activity boasts strong growth
2007/2008: CDA activity boasts strong growth
  • A record ski season
    • Favorable conditions: snow, staggered European school holidays
    • Consolidation of a new, prestigious, and economically high-performance ski area: Val d’Isère
    • Record visitor numbers: 13.7 million skier days (+6.8% like-for-like)
    • Brisk climb in sales (+23.7% on a real basis, and +7.8% like-for-like)
  • Leisure parks continue to grow in a competitive market and difficult economic environment
    • Visitor numbers up thanks to a dynamic marketing policy  9.5 million visitors (+2.5% like-for-like)
    • Downside of this aggressive marketing policy: limited growth of spending per visitor of +1.3%
    • Sales growth of +3.5% on a real basis and +4.7% like-for-like

Compagnie des Alpes - Compagnie des Alpes at December 15, 2008 - 4

2007 2008 financial performances significantly up
2007/2008: Financial performances significantly up
  • EBITDA and EBIT growth of over 20%
  • Improved operating margins, which are approaching their target level (EBITDA/sales ~30%)
  • Very solid increase in Net Attributable Income: €36.2 million (+28.8%, and +17.1% like-for-like)
  • Continued Group progress in terms of free cash flow and debt optimization
  • Improving trend in profitability ratios

Compagnie des Alpes - Compagnie des Alpes at December 15, 2008 - 5

contents6
Contents
  • Compagnie des Alpes at December 15, 2008
  • Results of fiscal year 2007/2008
  • Review of 2008 and outlook for 2009
  • Strategic trends

Compagnie des Alpes - Results of fiscal year 2007-2008 - 6

ski area results
Ski area results
  • Effects of scope: controlling stake in Val d’Isère and FY consolidation of Saas Fee
  • Strong like-for-like sales growth of ski lifts (+ 8.7%); record visitor numbers (+6.8%) and daily revenues up 1.9%
  • Building rights sales down slightly (€-2 million) but a major contributor (EBITDA = €7.7 million vs. €8.3 million in 2007)
  • High operating margins: healthy activity + control of operating costs  record profitability in ski business line

Compagnie des Alpes - Results of fiscal year 2007-2008 - 7

leisure park results
Leisure park results
  • EBITDA stable
    • Costs of Christmas product launch at Astérix and impact of initiatives aiming to enlarge distribution circuits (with gains coming over several FYs)
    • Exceptional charges for the disposal of PanoramaPark and a provision for legal dispute
    • Excluding exceptional items, EBITDA growth and consistent EBITDA/sales margins in an intensely competitive environment
  • Drop in operating income
    • Higher depreciation due to capital spending policy
    • Exceptional charges of €2 million: provision for Pleasurewood goodwill loss and exceptional depreciation of certain operating assets

 The decline in EBIT can be attributed for the most part to nonrecurring items

Compagnie des Alpes - Results of fiscal year 2007-2008 - 8

corporate results
Corporate results
  • Structural costs stable
    • Organization stable
    • Lower volume of certain discretionary charges

Compagnie des Alpes - Results of fiscal year 2007-2008 - 9

group results
Group results
  • Robust growth of operating income like-for-like
  • Cost of debt higher on a real basis (Sofival operation) but lower like-for-like (reduction and optimization of debt)
  • Affiliates: entry into consolidation of SERMA, DSV, and DSR
  • Net attributable income: +17.1% like-for-like

Compagnie des Alpes - Results of fiscal year 2007-2008 - 10

cash flow
Cash flow
  • Operating cash flow climbs: +18.3% to €128 million
  • Stable net capital expenditures at €91 million
  • Sharp increase in free cash flow (before change in debt and receivables on assets)
  • Free cash flow has grown significantly over the last four years

Compagnie des Alpes - Results of fiscal year 2007-2008 - 11

debt and profitability
Debt and profitability
  • Net debt improving
    • Reduction of debt like-for-like
    • Continued actions to optimize WCR (€33 million added to debt reduction in two years)
    • Lowered net debt / EBITDA ratio and stable gearing despite the Sofical acquisition costs
    • Stable average interest rate at 4.38%
  • Group financing requirements secured
    • Over 70% of medium-term and long-term debt matures in 2011
    • 71% of debt is not exposed to interest rate risk
  • Profitability ratios for shareholders’ equity and capital employed are improving despite acquisitions

Compagnie des Alpes - Results of fiscal year 2007-2008 - 12

shareholder return
Shareholder return
  • 2007/2008: exceptional payout ratio of 2006/2007 maintained
  • Significantly higher return
  • Optional share-based payment proposed at the AGM

* Proposed at the AGM on March 19, 2009

Compagnie des Alpes - Results of fiscal year 2007-2008 - 13

contents14
Contents
  • Compagnie des Alpes at December 15, 2008
  • Results of fiscal year 2007-2008
  • Review of 2008 and outlook for 2009
  • Strategic trends

Compagnie des Alpes - Review of 2008 and outlook for 2009 - 14

ski areas an excellent 2008 season
Ski areas: an excellent 2008 season
  • Sales from ski lifts: +8.7% like-for-like
    • All sites improved
    • Grand Massif: +16.1%
    • Serre Chevalier: +13.4%
    • 3 Vallées (Méribel, Menuires): +12.1%
    • Paradiski: +7.3%
  • Return of volume growth: +6.8% (+866,000 skier days) like-for-like
    • Rise in number of passes sold (activity): +5.2%
    • Rise in average length of passes sold: +2.6% (3.67 days)
  • Rise in daily revenues/skier day: +1.9% to €24.9
    • Effect of the closing of the Vanoise Express: revenues per skier day down at Paradiski resorts: -1.6%
    • Continued recovery at Grand Massif (+4.2%) and Serre Chevalier (+7.6%)

Compagnie des Alpes - Review of 2008 and outlook for 2009 - 15

ski areas a solid model
Ski areas: A solid model
  • Loyal customers (incl. 40% foreign visitors)
  • Initiatives characterized by spending controls in 2008
    • Centralization of principal purchases (energy, equipment, replacement parts, fuel)
    • Optimization of processes: all companies are QSE certified
    • Implementation of synergies (best practices)
  • Adapting the economic model to the maturity of the market
    • Continued trend of lower capital spending: the level of capital spending as a function of value as perceived by customers, anticipated growth of accomodations capacity, and visitor numbers at resorts
    • New partnership to reduce maintenance and construction costs: 1st project at Val d’Isère in 2008 yielded savings of 20% on a six-seater chairlift

Compagnie des Alpes - Review of 2008 and outlook for 2009 - 16

outlook for 2009 ski areas
Outlook for 2009Ski areas

« Holiski: an innovation that creates value both for the customer and for the Group»

  • Successfully tested at two sites in 2007-2008
  • Target: the 25% of skiers who spend more than eight days annually in major ski resorts
  • Objectives: develop loyalty among the targeted customers, increase their ski consumption, and offer them additional services
  • Principles
    • Multi-resort passes
    • Hands-free: no payment at registers
    • Ski à la carte
    • No prepaid cards: debit at end of month
    • Prices lower than day passes (-15% to -25% depending on dates)
    • Modern approach to marketing: internet
  • Launch for the 2009 season at six resorts
  • Possible developments in 2009-2010

Compagnie des Alpes - Review of 2008 and outlook for 2009 - 17

outlook for 2009 ski areas18
Outlook for 2009Ski areas
  • +4,400 new commercial beds: +2.6% vs.1,300 in 2007 (+0.7%)
  • Occupancy rates of commercial beds in CDA resorts
    • At 12/01/2008 = 51.2% 12/01/2007 = 53.2%
    • Number of visits: -1.9% (total French network -3.4%)
    • Source: COMETE, 66% of seasonal reservations
    • The season will be impacted by the fact that Easter weekend comes in April this year (i.e. in H2 of the CDA fiscal year) vs. March in 2008
  • Abundant snowfall since the end of November: the best possible conditions
  • Reopening of the Vanoise Express (positive effect on revenues / skier day)
  • Alpine world ski championships at Val d’Isère (February 3-15, 2009)

Compagnie des Alpes - Review of 2008 and outlook for 2009 - 18

leisure parks steady growth
Leisure parks: steady growth

From 2005 to 2008, the activity growth of CDA leisure parks outpaced the market average

Sales growth of CDA leisure park activity

Value growth of European leisure park market

+ 3.5 % (real)

+ 4.8 %

+ 4.7 % (like-for-like)

Source: PWC Global Entertainment Outlook 2007-2011

Compagnie des Alpes - Bilan 2008 et perspectives 2009 - 19

leisure parks lively business in 2008
Leisure parksLively business in 2008
  • 2008: a year of active marketing
    • +400,000 prepaid tickets (+12% vs. 2007), 45,000 multi-park passes sold
    • A radical price policy in Belgium (Aqualibi)
    • At the height of the season: crisis of purchasing power and commercial attacks by competitors  business volume was supported by a dynamic promotional policy
  • New distribution channels gaining momentum
    • Partnerships with La Poste
    • Special operations: flash sales, gift boxes
  • Ancillary revenues softened the effects of the promotional policy on visitor spending: for example, Food and Beverage revenues +9%

Growth in visitor numbers (+2.5%) and sales (+4.7%), both thanks to a taste for innovative marketing

Compagnie des Alpes - Review of 2008 and outlook for 2009 - 20

leisure parks 2008 a year of capital spending and major project launches
Leisure parks2008, a year of capital spending and major project launches
  • The revival of Parc Astérix:
    • Renovated dolphinarium (€1.7 million)
    • Successful launch of the Défi de César (€12 million)
    • Encouraging results from the inaugural Christmas season (+100,000 visitors)
  • The consistent performance of « off season » products:
    • Extension of the opening periods paid off: Parc Astérix +11% visitors (+36 days), Mer de Sable +13% visitors (+18 days)
    • The example of Halloween in Belgium and the Netherlands
  • The expansion of Bioscope:
    • Two important new additions (Mission Océan and the Labyrinthe Végétal)
    • Strengthened partnership with the Ecomusée d’Alsace (shared sales platform)
    • Bioscope/Ecomusée: eco-village partnership with Pierre & Vacances

Compagnie des Alpes - Review of 2008 and outlook for 2009 - 21

outlook 2009 leisure parks
Outlook 2009Leisure parks
  • Heightened success of the All Saint’s Day 2008 period
  • At December 14, 2008
    • Visitor numbers: ~1.1 million visitors (+14%)
    • Sales: ~€27 million including tax (+19%)
    • Parc Astérix: ~210,000 visitors (+40%)
  • New additions
    • At Parc Astérix :
      • Le Capitole: events area
      • Over 150,000 visitors expected for the second Christmas, with a successful product offering: Défi de César, Dolphinarium, magic show, more rides
      • 20th anniversary as the 2009 season’s theme
  • March 1, 2009: grand opening at Planète Sauvage of France’s third dolphinarium
  • Café Grévin: work begins in October 2009

Compagnie des Alpes - Review of 2008 and outlook for 2009 - 22

contents23
Contents
  • Compagnie des Alpes at December 15, 2008
  • Results of fiscal year 2007-2008
  • Review of 2008 and outlook for 2009
  • Strategic trends

Compagnie des Alpes - Strategic trends - 23

history of compagnie des alpes 20 years of growth
History of Compagnie des Alpes20 years of growth
  • 1989 Innovative project launch: Caisse des Dépôts creates a structure for operators in the ski area sector. Swift pace of acquisitions.
  • 1994 World leader in ski areas. IPO on Paris’ Second Marché (November 18). Continued acquisitions in ski activities.
  • 2002 Diversification into leisure parks to boost growth and reduce risk related to a single-line business and to seasonality.
  • 2004 Privatization of majority of CDA capital
  • 2006 Consolidation of the leisure park branch with the acquisition of Walibi parks.
  • 2007 New stage of external growth: four new ski areas, including Val d’Isère and Avoriaz.

Steady and profitable growth: 75% from acquisitions, and 45% financed by equity

Compagnie des Alpes - Compagnie des Alpes at December 15, 2008 - 24

ski areas uncontested leadership
Ski areasUncontested leadership
  • CDA Group: n°1 in Europe and Worldwide in the operation of ski areas
  • Positioned in high-altitude resorts, the only strategy able to withstand unpredictable weather
  • A solid and stable business line: public service delegations and long-term concessions
  • Recognized operating know-how
  • A strong base of loyal customers
  • A leader position with high-quality assets and a business line with significant barriers to entry
    •  Recurrent revenues and cash flow

Compagnie des Alpes - Compagnie des Alpes at December 15, 2008 - 25

ski areas adapting the economic model as needed
Ski areas:Adapting the economic model as needed
  • Tested economic performances:
    • Unflagging organic growth for over 10 years
    • High operating margins
    • Capacity to integrate new sites
  • Stakes:
    • Adapt to changes in consumer behavior and to maturing markets
    • Change the economic model to ensure its capacity to create value
  • Means:
    • Maximize sales and operating strategies by profiting from the network effect
    • Stimulate dialogue among stakeholders by placing the customer at the center of attention
  • Develop a new approach to capital spending

Compagnie des Alpes - Compagnie des Alpes at December 15, 2008 - 26

leisure parks strategic capital rich in potential
Leisure parks:Strategic capital, rich in potential
  • In the last five years, the CDA Group has become n°4 in the sector in Europe and has acquired strong strategic positions in three countries.
    • 10% of the French market in volume
    • Leader in Belgium
    • N°2 in the Netherlands
  • Strong brands (Astérix, Grévin, Walibi), whose pan-European reputations will provide future growth
  • Thorough knowledge of different segments: theme parks, tourist sites, animal parks, and aquariums, all of which provide numerous opportunities for future development
  • Recognized operating expertise

Compagnie des Alpes - Compagnie des Alpes at December 15, 2008 - 27

slide28
Leisure parks Industrial priority: maximize the medium-term value of brands and of sites showing the most potential
  • Priority given to internal growth through commercial innovation and product quality
  • Focus capital spending on the continuous improvement of leading leisure parks and on development of the most promising projects
  • Brand strategies
  • Exploit all potential for increased margins (costs, organization, ancillary revenues, etc.)

Compagnie des Alpes - Compagnie des Alpes at December 15, 2008 - 28

conclusion a mobile and recognized enterprise fully focused on creating value over the medium term
Conclusion: a mobile and recognized enterprise, fully focused on creating value over the medium-term
  • Reaffirmed ambition: to become THE reference in European leisure production
  • An industrial strategy based on the optimization and adaptation of the economic model
    • Selectivity in capital spending and the choice of development projects
    • Aggressive search for synergies across and within the Group’s business lines
    • Stimulating customer innovation and of sales approach
    • Organization more integrated for greater reactivity
  • Increased strategic mobility:
    • Dynamic management of asset portfolio (inflows/outflows)
    • Alliances and industrial partnerships
  • An economic imperative: reducing debt
    • Immediate measures
    • Maximizing free cash flow
    • Disposal of peripheral assets

Compagnie des Alpes - Compagnie des Alpes at December 15, 2008 - 29

contents30
Contents
  • Compagnie des Alpes at December 15, 2008
  • Results of fiscal year 2007-2008
  • Review of 2008 and outlook for 2009
  • Strategic trends
  • Appendices

Compagnie des Alpes - Strategic trends - 30

sales
Sales
  • 16 yearsof uninterrupted growth
  • +22% per year, with 17% from acquisitions

Ski

Ski + Parks

Compagnie des Alpes - Strategic trends - 31

net attributable income
16 yearsof steady growth: +15% per yearNet attributable income

Ski + Parks

Ski

Real41.1

Like-for-like

Compagnie des Alpes - Strategic trends - 32

presentation of results 2007 2008 december 17 200833
Presentation of results 2007/2008December 17, 2008

Compagnie des Alpes - La Compagnie des Alpes au 15 décembre 2008 - 33