CLUB MEDITERRANEE 
By Paris, Monday 27 may 2013
Please find below:
? Press Release of Club MÄditerranÄe Board of Directors on the proposed friendly tender offer that its two main shareholders, Axa Private Equity and Fosun, intend submitting, together with Club MÄditerranÄe's management.
? Press Release of First Half Results 2013.
Information meeting today at 11 am French time ElysÄes Biarritz - 22 rue Quentin Bauchart - 75008 Paris.
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PRESS RELEASE
CLUB MÄDITERRANÄE BOARD OF DIRECTORS
Paris, Monday 27 may 2013
The Board of Directors of Club MÄditerranÄe, meeting on 26 May 2013, took knowledge of the proposed tender offer that its two main shareholders, Axa Private Equity and Fosun, intend submitting, together with Club MÄditerranÄe's management.
The Board took note of the friendly character of this offer.
The Board will be meeting within the next few days to name an ad hoc Board committee composed of independent directors. This ad hoc committee will be tasked with overseeing the work of the independent expert within the meaning of stock market regulations, who will be appointed by the Board and issue an opinion on the fairness of the tender offer.
In accordance with the 6th resolution voted by the shareholders' meeting on 7 March 2013 and Article 231-
40 of the AMF's General Regulation, the Board has decided to suspend implementation of the share buyback program, and in particular the liquidity agreement entered into on 10 July 2007 with Natixis Securities.
The Board will meet again after the delivery of the report by the independent expert to provide its reasoned opinion on the terms of the tender offer, in accordance with applicable regulations.
Contacts
Presse : Caroline Bruel tÄl : 01 53 35 31 29
caroline.bruel@clubmed.com
Analystes : Pernette Rivain tÄl : 01 53 35 30 75
pernette.rivain@clubmed.com
This press release is not and should not be considered as a tender offer on Club MÄditerranÄe's securities. Pursuant to French regulations, the documentation with respect to the tender offer which, if filed, will state the terms and conditions of the offer, will be subject to the review by the French Market Authority.
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PRESS Release
May 27, 2013
First-half 2013 revenue
(November 1, 2012 - April 30, 2013)
Club Med displays resilience in the first half of 2013 in a recessionary environment in Europe? Business volume Villages: ?783 million
? Operating income Villages: ?49 million, impacted by the timing of school holidays in
France
? Net income: ?18 million
? Positive free cash flow: ?11 million
? Summer 2013 bookings at May 18, 2013: business volume up 5.5% in a
French market that continued to deteriorateKey figures for the first half of 2013 (November 1, 2012 - April 30, 2013)
(in ?m) reported S1 11 S1 12 | S1 13 |
Business Volume Villages (1) 763 798 783 | |
Consolidated revenue Group - published (2) 754 783 Villages - at constant exchange rate 741 768 | 763 761 |
EBITDA Villages (3) 80 85 As a % of revenue 10,7% 10,9% | 81 10,7% |
Operating Income - Villages 46,6 52,8 49,4 | |
Operating Income - Management of Assets (14) (14) Other Operating Income and Expense (7) (7) | (9) (10) |
Operating income 26 32 | 30 |
Net Income/(loss) before tax and non-recurring items 28 39 35 Net income/loss 10 17 18 | |
Investments (30) (24) Disposals 17 23 Free Cash Flow 30 47 Net debt (169) (123) | (36) (4) 0 11 (112) |
(1) Total sales regardless the operating structure (reported)
(2) Includes ?7 million, ?9 million, and ?2 million in property development revenue for, respectively 2011, 2012 and 2013 (3) EBITDA Villages : Operating Income Villages before interest, taxes depreciation and amortization
(4) Withdrawn Investments (See Cash-flow statement)
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% chg. Win. 2013/Win. 2012 | |
Winter 2013 was boosted by the positive impact of the timing of the late October/early November school holidays, with an additional business volume estimated at ?5 million representing 8 more days of holidays in November 2012.
However, the first half of the fiscal year was adversely affected by the shift in the timing of Paris school holidays from April to May, representing 12 days of Easter holidays less in the Winter 2013 season, which produced a negative impact on business volume estimated at ?16 million.
These two calendar effects resulted in a negative net impact on Operating income Villages of around ?7 million, which held back performance in the first half of 2013.
? Business Volume Villages (corresponding to total sales regardless of village operating structure) totaled ?783 million, compared with ?798 million in the first half of 2012, representing a decline of just 1.9%.
? Villages revenues (at constant exchange rates) came to ?761 million, representing a decline of 1%. By geographical region:
- In the Americas, revenues grew by 5.6% reflecting the performance of Brazil,
- Revenues in Asia rose by 3.9%, lifted by a 27% increase in the number of customers in China, offsetting the impact of the closure of the 3 tridents Lindeman Island village in Australia during January 2012,
- The Europe-Africa region recorded a revenue decline of 3.4% owing chiefly to the
5.5% contraction in France. Performance in France was held back by the ?7 million dip in the CM Business, which set new records last year, and by the 3.9% revenue decline in the Individuals segment.
? RevPAB (revenue per available bed) advanced by 3.8% thanks to the improvement of the average price per hotel day at ?161 (up 3.6%) and to the stability of the occupancy rate of
71.3%.
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? Performance indicators
(in ?m) reported S1 11 S1 12 S1 13
Change
S1 13 vs S1 12
- 2,2%
- 0,1 pts
- 3,8%
- 0,2 pts
- 6,4%
- 0,3 pts
(1) EBITDAR Villages: Operating Income Villages before depreciation, amortization, rents and change in provisions
(2) EBITDA Villages: Operating Income Villages before depreciation and amortization
? EBITDA Villages totaled ?81 million compared with ?85 million. Even so, the EBITDA margin Villages (as a proportion of revenue) held firm at 10.7% compared with 10.9% in the first half of 2012 despite the deterioration in European tourism markets.
? Operating income Villages totaled ?49.4 million, compared with ?52.8 million in the first half of 2012, negatively impacted from calendar effects in France of around ?7 million.
? Net income advanced to ?18 million, up from ?17 million in the first half of 2012.
? Free cash flow is structurally positive, reaching ?11 million. The Group continued to pay down debt, which dropped from ?123 million at April 30, 2012 to ?112 million at April 30,
2013. Gearing improved by close to 2 points to stand at 20.9%.
2. Further Club Med continues to execute its strategy: further market share gains? Acceleration in the pace of market share gains in France in a market experiencing a steep contraction
Amid a contraction in the French individuals market of 7.3% (in terms of business volume) during the winter 2013 season according to the CETO1 figures, Club MÄditerranÄe has continued to gain market share, since it recorded a decline of just 5.7% using the same criteria.
? Healthy resilience in other mature European markets
In the other mature markets, Club Med has continued to outperform in declining markets: down 4% in Belgium (vs. a market down 6%), down 2% in the UK (vs. a market down 3%) and up 6% in Germany (vs. a market up 4%).
1 CETO: Cercle d'Etudes des Tours OpÄrateurs (French Tour Operators Association)
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? Growth in fast-developing markets
Club MÄditerranÄe's customer base recorded a three-point increase in fast-growing markets compared with winter 2012 to reach a total of 167,000, representing 28% of Club MÄditerranÄe's customer base in the winter 2013 season.
? Mountains: a competitive edge
The 4 Tridents Valmorel village that opened in December 2011 in the Tarentaise region has continued to build on the success of its first summer and winter seasons, achieving an occupancy rate of close to 83% in the winter plus a very high satisfaction rate.
The new upscale Pragelato Vialattea village in the Italian Alps has got off to a successful start since its last December opening, already achieving a promising occupancy rate of close to 80%.
Moreover, 30% of customers who went to mountain destinations during winter 2013 were new customers.
? China: set to be Club Med's 2nd-largest market by the end of 2015
Following the opening of Yabuli in 2010 and Guilin during summer 2013, in line with its business plan, Club MÄditerranÄe plans to open its first seaside village in southern China by the end of the year.
China now accounts for the largest number of customers at the villages at Kani in the Maldives, Phuket in Thailand and Bali in Indonesia and the second-largest, after French customers, at the Albion village in Mauritius.
(at constant exchange rate) Cumulative as of
18th mai 2013
Europe - Africa + 4,7% - 4,6% Americas + 8,8% + 4,4% Asia + 8,0% + 13,9% Total Club Med + 5,5% + 0,3%
Capacity Winter 2013 - 3,5%
Cumulative bookings at May 18, 2013 stated in terms of business volume at constant exchange rates were up 5.5% compared with summer 2012. At the same time last year, close to two-thirds of bookings had already been made.
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All the regions have posted increases to date.
? In a very downbeat environment, Europe-Africa posted growth of 4.7% owing to the slight shift in the timing of Easter holidays into the summer season, leading to an impact of close to ?9 million. This positive timing effect has generated close to 30% of our individual sales to date. Excluding the impact of the timing of the Easter holidays, bookings have been driven by the opening of the new Belek and Pragelato Vialattea villages.
? In the Americas, bookings have moved up 8.8% owing to the strength of sales in the
United States.
? In Asia, bookings have risen by 8%, with a key contribution from fast-growing markets,
especially Greater China, where bookings are up by more than 40%.
Over the past eight weeks, bookings have posted a slight increase of 0.3% in spite of the contraction recorded in Europe owing to the continued contraction in the French market, which decrease by 3% in terms of number of customers according to the CETO figures.
Summer 2013 capacity has been adjusted by 3.5% compared with the previous summer. However, this reduction reflects major differences from one geographical region to another.
Capacity was cut by close to 8% in the Europe-Africa region to reflect the continuing downturn in the tourism market, especially in France.
Capacity is unchanged in the Americas.
In Asia, capacity has increased by 10.9% given the opening of the Guilin village in China this summer.
Lastly, the seven-point increase in capacity in 4 and 5 Trident villages during summer 2013 derives from the opening of new villages during the season, i.e. Pragelato Vialattea in Italy, Belek in Turkey and, lastly, Guilin in China. These new villages are all upscale facilities open all-year- round or for two seasons.
ADDITIONAL INFORMATION
The consolidated financial statements for the six months ended 30 April 2013 were approved by the Board of Directors on 26 May 2013.
The Auditors have performed a limited review of these financial statements and have issued their report.
Contacts
Press: Caroline Bruel Tel.: +33 (0)1 53 35 31 29
caroline.bruel@clubmed.com
Analysts: Pernette Rivain Tel.: +33 (0)1 53 35 30 75
pernette.rivain@clubmed.com
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APPENDIX
? Shareholders at April 30, 2013
Number of shares Voting rights 30 April 2013 % K 30 April 2013 % DDV | ||||
Fosun Property Holdings Limited CMVT International (Groupe CDG Maroc) Rolaco AXA Private Equity Capital Benetton | 3 170 579 2 250 231 1 793 053 2 982 352 708 000 | 9,96% 7,1% 5,6% 9,4% 2,2% | 6 044 723 (1) 2 250 231 1 793 053 2 982 352 708 000 | 17,0% 6,3% 5,0% 8,4% 2,0% |
Total Conseil d'Administration | 10 904 215 34,2% 13 778 359 38,7% | |||
Fidelity (FMR LLC) Caisse des dÄpÇts et consignations Franklin Finance Air France GLG Partners LP (2) Institutionnels franÉais Institutionnels Ätrangers AutodÄtention (3) SalariÄs Public et divers | 2 455 905 1 918 492 1 843 200 635 342 319 619 3 568 799 7 140 065 223 717 25 510 2 805 730 | 7,7% 6,0% 5,8% 2,0% 1,0% 11,2% 22,4% 0,7% 0,1% 8,8% | 2 455 905 1 918 492 1 843 200 635 342 319 619 3 626 897 7 816 167 223 717 51 020 2 921 488 | 6,9% 5,4% 5,2% 1,8% 0,9% 10,2% 22,0% 0,6% 0,1% 8,2% |
TOTAL | 31 840 594 100% 35 590 206 100% |
(1) of whi ch 5 866 536 voti ng ri ghts can be exerci sed
(2) shares and contracts for di fferences (agreement between two parti es to exchange the difference between the opening price and closing price of a contract.)
(3) treasury shares whi ch voting rights can not be exerci sed
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