n/m - Euro Disney SCA

Annual Results Presentation
Fiscal Year 2008
October 21, 2008
Philippe Gas
Chief Executive Officer
Euro Disney S.A.S.
2008 an important milestone
Record revenues: 1,330 M€
Net profit: 2 M€
Third year of revenue growth
Net profit
(in € millions)
FY 2006
FY 2007
+9.0%
+12.2%
3
Europe’s #1 Tourism Destination
15.3 M visits in 2008
+ 3 M visits in 3 years
Hotel occupancy rate
at 91%
4
Full year 2008 highlights
Over 200 millions visits since the opening
Success of our growth strategy:
Development of Attractions and Shows
to improve Guest Experience
Supported by a solid Marketing & Sales Strategy
5
New Attractions and Shows
7 out of 10 guests are very or completely satisfied
Source: Consumer Knowledge
6
Marketing & Sales Strategy
Our objectives:
Create the urgency
to visit now
Remove barriers to visit
… applicable to all our key target markets
Distant Market
• Kids under 7 go free
• Country specific pricing
initiatives
Local Market
• Billet Francilien
• Annual Passeport
Paris Tourist Market
•Leveraging tourism
partners in the Ile de
France region
“ Be present where the consumer buys ”
7
Custom‐Made Magic
More flexibility in our offers
Adapting experience to all budgets
Extra Magic Hours
8
Innovative Campains
9
Ignace Lahoud
Senior Vice President
& Chief Financial Officer
Euro Disney S.A.S.
Growth in all our Key Drivers in FY 08
Average spending per guest
(in €)
(In millions visits)
Theme Parks attendance
Average spending per room
(in €)
Hotel occupancy rate
11
Fiscal 2008 key financials
Record revenue of 1,330 M€
Breakeven at net result level
EBITDA: + 100 M€ since 2006
(In € millions)
249
Net Result: +90 M€ since 2006
FY 2006
FY 2007
19%
17%
14%
EBITDA Margin
12
Breakdown of Attendance by Country
Countries
Germany
3%
International
10%
France
43%
Italy 4%
BeLux
(1)
6%
Netherlands
7%
% vs FY
07
France
+ 3%
United Kingdom
+ 5%
Spain
+ 6%
Netherlands
+ 15%
BeLux (1)
+ 5%
Italy
+ 15%
Germany
(1)%
International
+ 9%
(1)
Belgium & Luxembourg
Spain 11%
United Kingdom
16%
13
Revenues by Activity
1,330
41
58
+9%
19
59
Real Estate Development
+22 M
Other Revenues
(1) M
483
Hotels and Disney Village
+33 M
516
659
Theme Parks
+57 M
716
(In € millions)
1,220
Change
14
Costs and Expenses
Operating costs up 6%, increasing at a lower rate than
revenues
1,170
(In € millions)
108
122
+6%
1,240
General & Administrative
+11 M
Marketing and sales
+3 M
119
125
Direct Operating Costs (1)
+56 M
940
996
Change
(1)
Direct operating costs primarily include wages and benefits for employees in operational roles, depreciation and amortization related to
operations, cost of sales, royalties and management fees. For the Fiscal Year and the corresponding prior‐year period, royalties and
management fees amounted to € 74.7 million and € 69.1 million, respectively.
15
EBITDA
Increase
in Revenue
Increase
in Costs
Increase
in D&A
71
110
4
249
206
EBITDA 07
EBITDA increased 21%
EBITDA 08
16
Statement of Income
Positive net profit reflecting increased activities
offset by moderate increasing in costs
(in € millions)
Full Year
2008
Full Year
2007
Revenues
1,330.5
1,220.3
110.2
9.0%
(1,240.0)
(1,169.5)
(70.5)
6.0%
Costs and Expenses
Operating Margin
Variance 2007/2008
€
%
90.5
50.8
39.7
78.1%
(88.4)
(92.2)
3.8
(4.1%)
Net profit / (loss)
1.7
(41.6)
43.3
n/m
Net profit / (loss)
‐ Minority Interests
4.5
(3.2)
7.7
n/m
(2.8)
(38.4)
35.6
n/m
Net Financial Charges
Net loss
‐ Equity Holders
n/m: not meaningful
17
Cash Flows
Operating
Investing
Financing
72
(In € millions)
178
330
Cash *,
Beginning of the period
(September 30, 2007)
* Cash and Cash equivalents
62
374
Free cash flow of 106 M€
Cash *,
End of the period
(September, 30 2008)
18
Summary,
Net profit of 2 M€
Significant improvement of our cash position
in FY 08
Solid resilience to the economic environment
for FY 08
19
Philippe Gas
Chief Executive Officer
Euro Disney S.A.S.
Growing EMEA Theme Park market share
2000
Market Size:
85 million
Euro Disney
14.1%
Source: EDL strategic planning analysis
Note: Price Waterhouse Coopers estimates the theme parks market in EMEA
(Europe Middle East Africa) at c. 139 million attendees in 2007, which would mean
a 10% market share for EDL
2007
Market Size:
91 million
Euro Disney
15.8%
21
Our Stengths in the European Leisure
& Tourism Landscape
Disneyland® Resort Paris is more than Theme Parks,
it is a true multiday vacation destination
The European travel & leisure market is a c. 350 B€ *
industry which benefits from c. 500 M tourists annually
Competitive advantages:
Capacity & accessibility
Diversified revenues streams
Optimized seasonality & stable employment structure
Strength of the Disney brand
•1 USD = 0,7417 euro
22
Continuation of our development strategy
Build on the strength of the Disney brand
Playhouse Disney – Live !
Disney’s Stars‘n Cars
Evaluate opportunities for
Resort development
23
Conclusion
Deliver Europeans a unique experience
Focus on solid strategies
Leverage our #1 European tourist destination position
and high potential market
Ensure long‐term growth & profitability
24
Questions &
Answers
Annual Results Presentation
Fiscal Year 2008
October 21, 2008