investor day caythorpe park 28 th september 2007 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Investor Day Caythorpe Park 28 th September 2007 PowerPoint Presentation
Download Presentation
Investor Day Caythorpe Park 28 th September 2007

Loading in 2 Seconds...

play fullscreen
1 / 37

Investor Day Caythorpe Park 28 th September 2007 - PowerPoint PPT Presentation


  • 230 Views
  • Uploaded on

Investor Day Caythorpe Park 28 th September 2007 INVESTOR DAY PRESENTATION Corporate Overview – Carl Michel Education (PGL) – Martin Davies Q&A Hotel Breaks – Nick Cust / Mark Wray Q&A Adventure – Simon Tobin Q&A Camping – Steve Whitfield Q&A Corporate Overview STRATEGIC GOALS

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Investor Day Caythorpe Park 28 th September 2007' - omer


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
investor day caythorpe park 28 th september 2007
Investor Day

Caythorpe Park

28th September 2007

slide2

INVESTOR DAY PRESENTATION

  • Corporate Overview – Carl Michel
  • Education (PGL) – Martin Davies
    • Q&A
  • Hotel Breaks – Nick Cust / Mark Wray
    • Q&A
  • Adventure – Simon Tobin
    • Q&A
  • Camping – Steve Whitfield
    • Q&A
slide4

STRATEGIC GOALS

  • Build on core competences: leverage synergies
  • Develop a multi-path approach
  • Pursue sustainable faster growth
    • Secure strong positions in higher margin businesses
  • Diversify sales mix
slide5

PRO FORMA DIVISIONAL SPLIT*

Turnover

(£m)

Operating profit

before exceptional items

(£m)

Before

After

* Based on: Holidaybreak FY results to 30 September 2006; PGL 12 months to 22 February 2007.

slide6

MARKET TRENDS

  • Consolidation amongst major tour operators
    • Thomas Cook and TUI Travel now listed on FTSE
    • Will lead to only modest pruning of retail estates
    • Ability to control margins still to be tested
  • Online growth slowing down
    • Consumers more ‘savvy’; prefer building trust-based relationships
    • Affiliates being squeezed
  • HMG really pushing the Outdoor Learning agenda
  • Fragmentation of tastes throws up new niche opportunities
  • Green lobby and political responses will become much more prevalent for wider tourism market
slide9

OVERVIEW

  • PGL operates in three areas
    • Outdoor education and adventure for schools
    • School Tours
    • School Ski Trips
  • Market
    • High Margins
    • A market-leading position
    • Very high barriers to entry
    • Strong demand conditions
    • Under supply
    • Visible income
slide10

OUR MARKETS

Outdoor Education and Adventure

  • PGL is the clear market leader in this sector
  • PGL operates predominantly at the Key Stage Two level for 8 – 12 year olds
  • Estimated market growth of c. 7% over from 2005 - 2010
  • In excess of 800 registered operators in the outdoor sector. Over 60% are not for profit (i.e. LEAs)

Competition

Size

Drivers

  • Market historically dominated by LEAs
  • Funding pressure and teacher expectations means LEA provision is decreasing
  • Administration and fear of litigation means teachers are less willing to organise
  • Experienced commercial providers sought
  • Brand recognition and values important
  • Demand at peak outstrips supply
  • Government support for outdoor learning
  • Other operators:

- Acorn

- Travelclass

- Kingswood

- NST

- Manor Adv.

  • The market is also served by 99 LEA centres
  • In addition there are a further 50 registered centres usually run and managed by the owner
slide11

OUR MARKETS

School Tours

  • Market trend of more foreign travel
  • Core age range – 11 – 16 years
  • Majority of operators in this sector are growing at c. 3% per annum
  • Static real growth

Competition

Size

Drivers

  • Risk management and government approval issues impacting the outdoor education market also apply
  • Admin / risk management costs will drive business towards the larger, more professional operators
  • Brand awareness and trust is key
  • Barriers to entry will become even higher
  • PGL sees an opportunity to professionalise the market, taking share from smaller operators and DIY
  • Other operators include NST and STS
  • Further consolidation would offer larger players scale and more comprehensive product ranges
slide12

OUR MARKETS

Ski

  • The market has been in decline since the late 1980s
  • The majority of LEAs do not see the educational benefits of such trips, hence the industry is focused on school holiday periods
  • Opportunity to reposition as an educational product

Competition

Size

Drivers

  • Due to the declining nature of the market, PGL’s strategy is to increase market share and build margin
  • STG
  • Ski bound
  • 4 other mid size operators
  • There are also numerous other smaller players and DIY comprising the remainder of market supply
slide13

GROWTH STRATEGY

Acquisitions

Refurbishment

Optimal

strategy

Organic growth

  • Investment in facilities and infrastructure to extend market position and potentially improve margins
  • Increase size of business to match PGL reputation
  • Developing second tier management and potentially acquire additional expertise
  • Understanding opportunities in the marketplace
  • Known acquisition targets
  • Identify additional sites
  • Develop range of services and customer relationships
slide14

GROWTH STRATEGY

Increase capacity

  • Acquisition
  • Increase capacity of existing sites
  • Partner sites

Maximise gross margin

  • Concentrate on 500+ centres
  • Migrate customers to new, larger centres
  • Premium price at peak
  • Improve off peak and shoulder fill
  • Improve facilities to raise tariffs
  • Maximise on site income

Grow school tours and ski market share

  • Acquisition
  • Capture share from DIY market
  • NPD
  • Grow centre based accommodation
slide15

GROWTH STRATEGY

Develop holidays business

  • New product development
  • Build infrastructure to cater for growing family market
  • Group partnerships
  • Consumer marketing investment

Maintain, influence compliance and credibility

  • Lead BAHA’s influence
  • Ensure PGL is in vanguard of all LEA and DFES groups and working parties

Recycle property asset base

  • Sell underperforming assets
  • Sell non trading property
slide16

RATIONALE FOR ACQUISITIONS

Consolidation

  • PGL currently focuses on UK residential centres for key stage 2 (8-12)
  • “Winners” will provide out of classroom products for wide age range

PGL Brand

  • Opportunity to increase the size of the business to match reputation

Synergies

  • Potential benefits in overhead reduction, market pricing, market segmentation, gross margin

People

  • Chance to develop second tier management and acquire additional expertise

Strategic Partnerships

  • To meet all schools residential out of classroom learning needs
  • Potential for investment in partnership for long term stability

Broadening of brand proposition

  • A significant school tours business will deliver a core of 12-18yr olds

Economic Model

  • A significant tours operation will generate cash during winter
slide17

SUMMARY

  • Profitable and cash generative business
  • Established market leader
  • Generic brand
  • Growth markets
  • Superb reputation
  • Loyal customer base with significant repeat revenues
  • Visible income
  • Consolidation platform
  • Quality asset backing including strong freehold property
  • Management team with a record of success
  • Opportunity to grow
slide21

OVERVIEW

  • Wide distribution platform:

Market Overview *Superbreak

- 40% online - 35% online

- 60% agent / telephone - 65% agent / telephone

* Source – The Listening Company (methods of booking foreign travel)

  • Maintaining gross margins / good relationships
  • Distancing ourselves from ‘bed banks’
  • Adding ‘unique’ product to package with hotels
  • Changing product mix
    • Packaged content increased from 27% (05/06) to 40%+ (06/07)
    • Purchase of West End Theatre Bookings
    • Rail initiatives
    • New Web Content team (includes non hotel contractors)
slide22

INTERNATIONAL

Overseas hotels

  • Expansion of hotel product: 2,400 → 4,000
  • Challenges
    • Traditional cities (e.g. Prague)
    • Margin erosion and commitments on Beach
  • Appeal to UK travel agents
  • Expansion of medium/long haul destinations
  • Introduction of transfers – Autumn 2007
  • Continued focus on packages (ex air)
  • A balance for UK events + circumstances

Bookit

  • Expansion of hotel product: Hotelletje
  • Integration of websites through Weekendjeweg.nl
  • Expansion beyond Benelux (Citytripper)
  • Bungalows
    • Expansion in South of France
    • Other hard walled accommodation
  • Vouchers
  • Own photographic imagery
slide23

GROWTH PROSPECTS

  • IT investment
    • More stable technical platform – migration of mainframe in late 2008
    • New website design; holiday reviews; theatre video streaming; voucher redemption
    • Content Management System
    • Own photographic imagery and video
    • Differentiation of web offering complementing product
  • Superbreak becoming more defensible
  • Bookit – product creation (15% of Dutch households)
  • West End Theatre
    • More packaging
    • Better margin
  • Ongoing review of acquisition opportunities
    • Embassy / Highlife
    • West End Theatre
slide27

OVERVIEW

Travel experiences for individuals and groups

  • Expanding portfolio
  • Value added: hard to recreate individually
  • Consumers: on trend, altruistic, experience seeking, ‘middle youth’
  • Industry structure: fragmented, highly competitive, high knowledge requirement, high margin/costs
  • Flexible product dimension: ‘open’ and ‘closed’ groups. small groups, individuals and families
  • Business characteristics: low fixed costs, minimum commitments, constant innovation
slide28

BRANDS AND PRODUCTS

EXPLORE!

  • Worldwide, Family Adventures, Cycling, Beyond, School Adventures, Short Breaks, Special Interest
  • InStyle, Rail journey, Antarctic and Expedition cruising

DJOSER nl

  • Worldwide, Family Adventures (Junior), Walking and Cycling, Special Interest

THE TRAVELPLUS GROUP

  • Carpe Diem: Language Travel
  • Travelworks: Work & Travel, Volunteer, Internships and high school placements

REGAL

  • Diving Red Sea and Worldwide, Shore and Liveaboards
slide29

BUSINESS MIX AND MARKET

Adventure small groups

  • Family Adventures +20%; Cycling +40%; Special Interest doubles; Antarctic & rail journeys grow

Destination mix alters annually

  • Middle East & Egypt affected; Europe softens; South America, North & Central Asia, South & West Africa grows

Learning, volunteer work & gap travel

  • Sector seeing strong growth in UK and European markets

Market trends

  • Overseas holidays to grow 16% from 2006 – 2012
  • Long haul to reach 10.8m holidays by 2011 (+29%)
  • 41% of adult population will be single in 2011
  • Fastest growth in Independent Holidays
  • Technology creates a changing consumer mindset
  • ‘Middle Youth’ not ‘Middle Age’
  • Green Issues – carbon offsetting, conservation, eco-awareness
  • APD – despite increase, air travel has never been cheaper
  • Luxury market grows – quality and authenticity, active days and comfortable nights
growth prospects
GROWTH PROSPECTS
  • Organic initiatives
    • Djoser brand across N. Europe
    • New and continuing product development in Special Interest sectors
    • Travelworks (work & volunteer travel) to launch in Austria
    • Schools Adventures expands: potential to work with PGL
    • New distribution opportunities: Spirit of Adventure, Habitat for Humanity
    • Explore to launch ‘Independent’ holiday proposition in 2008
  • Acquisitions
    • Opportunities exist for consolidation in markets and in specialist sectors
    • Targets in Europe to enhance existing distribution / add new product or expertise
  • Macro trends support growth
  • Fragmented sector – consolidation opportunities
  • Geopolitical events / natural disasters can have short term effect
  • Leverage sector market leadership in UK and Northern Europe
  • Real opportunities for cross-marketing of products across the group.
  • Flexible model allows for innovation and speed of response
  • Investment in technology and in house travel expertise
slide34

OVERVIEW

Eurocamp and Keycamp

  • Market leading brands
  • Quality product with flexibility and choice
  • High satisfaction levels and loyalty
  • Strong pan-European sales and marketing
  • Large segmented databases
  • Disciplined capacity planning and yield management

Eurocamp Independent

  • Pitch and ferry reservation service
  • Acquisition of Select Sites (Oct 1st)

Easycamp

  • Value based holidays in site owned Mobile Homes
  • Low risk model well placed for growth

Own a Holiday Home

  • Sales of Mobile Homes for residential use in France
  • Leverage customer databases and brand strength
slide35

CHANGING PRODUCT MIX

  • Regional trends
    • Annual review of demand profile
    • Flexibility to respond
  • Tents in decline (10%-20% p.a.)
    • Operational flexibility within the season
  • Mobile Home capacity now broadly in line with market demand
    • Over 8000 Mobile Homes
    • Choice of styles and sizes
    • Look and feel of different models
    • Increase in larger, more luxurious Mobile Homes
    • Decking and air conditioning
  • Quality
    • Important for repeats and recommendations
    • Justifies price premiums
  • Disposal considerations
  • Stable capacity
    • 1000 replacements = ~ £10m net Capital Expenditure
slide36

PROSPECTS

  • New destinations
  • New accommodation types
  • Adding value
    • Children’s Courier services
    • Soccer Service
    • Activity services
  • Exploiting PGL synergies
    • Activity product for camping in 2008
    • Purchasing
    • Recruitment
  • Managing stable core business
    • Cash generative with strong profits, high margins and excellent return on capital
  • Maintaining market leading position
    • Invest in new accommodation
    • Exploit technology to access new customers and drive down selling cost
    • Innovate and develop new product options