Compagnie Des Alpes Reports FY 2019-2020

Consequently, for the year as a whole, sales for this division came to €360.2 M, a significant decrease of 18.8% compared with the same period last year, whereas an increase of around 2.5% was observed until the ski resorts were forced to close prematurely in mid-March.

As a direct result of these resort closures, the number of skier days also fell by a substantial 20.5%, while revenue per skier day rose this year by 1.5%.

LEISURE PARKS: THE 4TH QUARTER WAS SLIGHTLY MORE DYNAMIC THAN EXPECTED

After a 3rd quarter adversely impacted by the lockdown, the Group was able to reopen nearly all its leisure parks in the 4th quarter, with the exception of Grévin Montréal, which remains closed to date. In Belgium, in the Netherlands, and in Austria, the Group's parks were limited in the number of guests who could simultaneously be present on the premises.

In the ongoing public health context that continues to impact sales, sales for the 4th quarter came to €118.9 M, a decline of 30.2% compared with the same period last year but less severe than the guidance the Group offered last July. The operating discipline shown by the Group's entities facilitated the rollout of the stringent health and safety protocols required for the sake of guests and employees alike; the Group's commercial agility also made it possible to mitigate the impact of the closure of a number of distribution channels despite the obstacles posed by the public health threat.

This context did not have a negative impact on the overall satisfaction scores given by guests, which consolidated this quarter. Visitor hospitality scores even improved for all sites. In addition, the season's two major new attractions, Objectif Mars at Futuroscope and Wakala at Bellewaerde Park, both received a score of 9.2/10, which makes them the number 1 attraction in the parks that host them and achieves the level of Very High Satisfaction the Group aims for.

The 3rd hotel at Parc Astérix was delivered before the lockdown began, and it too has been well-received since it reopened. For the month of August, the occupancy rate for the park's three hotels was above 90%, even though the total capacity was up by 50% compared to last year (150 additional rooms).

For all of 2019/2020, sales for the Leisure Parks were strongly impacted by the consequences of the Covid- 19 pandemic; they reached €232.1 M, which is a decrease of 39.0% versus financial year 2018/2019.

Total guests for the year fell by 44.5%, although spend per visitor was resilient, progressing by 5.3% for the season as a whole, driven by the good performance in the 4th quarter (+7.2%) thanks, in particular, to dynamic in-park sales.

OUTLOOK

• Ski Areas1

Thanks to efforts deployed by the Group, the cost reduction plan that was implemented when the ski areas were shut down, and the measures rolled out by the French government to support the tourist industry, the Group is now aiming for an EBITDA/Sales ratio of 32% excluding the impact of IFRS 16 (around 34% after IFRS 16). The Group also confirms that the investments made in the Ski Areas division total around €80 M.

The first quarter accounts on average for about 15% of the annual sales of this division, with most sales concentrated over the Christmas holidays. For financial year 2020/2021, visibility with respect to the end of the calendar year is currently limited, in part because the tendency of customers to make reservations at the last minute has been accentuated by the public health crisis. Sales will once again depend on how the Covid-19 pandemic evolves and what impacts it has.

Against this backdrop, Compagnie des Alpes is enforcing the health and safety protocol implemented last summer and is deploying a business action plan whose aim is to encourage guests to visit its Ski Areas.

• Leisure Parks

Parallel to better than expected sales in the 4th quarter, the Group also incurred expenses to enable the correct application of health and safety measures - personnel expenses in particular. As a result, the Group maintains its negative EBITDA ex-IFRS 16 target for the year as a whole (but close to breakeven post-IFRS 16). The Group also confirms that the investments made for Leisure Parks are slightly above €85 M for this financial year.

The 1st quarter accounts for about 18% of this division's annual sales, with the bulk of sales concentrated around Halloween and, to a lesser extent, the period around Christmas and the end of year holidays.

This year, the offering of Compagnie des Alpes at its various sites for the Halloween period will be adapted to the public health situation. Compared with last year, hours of operation will be changed. In addition, as was the case last summer, constraints linked to the number of guests will be implemented, though their impact may be more pronounced than last summer.

Accordingly, and depending on how the pandemic evolves, the Group anticipates that sales for the first quarter will be more adversely impacted than sales for the 4th quarter of the year ended. Consequently, the Group has taken the requisite cost adjustment measures during this period.

• Ambitious plan for the transformation of Futuroscope

On October 12, 2020, Compagnie des Alpes signed a new shareholders' agreement with Banque des Territoires - Caisse des Dépôts, the Département de la Vienne, and SEM Patrimoniale de la Vienne that commits the partners to a major investment plan totaling €300 M (of which €200 M carried by Compagnie des Alpes) over the next ten years.

As the Group explained in a press release issued on July 3, 2020, this ambitious plan for the transformation of Futuroscope concerns the current facility plus a new activity zone adjacent to it, which will be managed by Compagnie des Alpes via a new 30-year lease.

The objective of this project is to strengthen the appeal of the Futuroscope site as an exceptional short stay destination in France and in Europe.

FINANCIAL SITUATION

The Group has taken the measures needed to protect its liquidity position. On June 19, 2020, it announced the implementation of a government-backed loan for €200 M, then confirmed overdraft lines of €147 M with its banking partners.

On September 25, 2020, the Group also announced that it had reached an agreement with all of its banking partners and lenders pertaining to the suspension of its debt leverage covenant for the next two scheduled testing dates, i.e., September 30, 2020, and March 31, 2021.