A performance and value-creating strategic plan based on a
new vision of reinvented local tourism:
- A radical modernisation and premiumisation across the
Group,
- A switch to offers that are 100% experience-based, personalised
and service-focused,
- Ambitious and responsible property development serving the
customer experience,
To boost performance: €275 million in EBITDA in 2025 and
as much operating cash flow generation over 2022-2025.
Regulatory News:
The Pierre & Vacances-Center Parcs Group (Paris:VAC)
announces today its new strategic plan for 2025, Reinvention
2025.
“The Covid-19 pandemic has accelerated the transformation of the
tourism industry and created new customer expectations. Families
want modern, authentic, fun, useful, relaxing and instructive
holidays, to experience unforgettable moments together, from one
generation to another” states Franck Gervais, CEO of the Pierre
& Vacances Center Parcs Group since January 2021.
“The aim of the Reinvention 2025 strategic plan is to make the
Group a pioneering leader for our vision of a new and reinvented
local tourism, that is more sustainable, 100% experience-based,
modern and valuing creating. While we can rely on our Group’s
outstanding assets including brands with strong reputations, loyal
customers and committed teams, we are going to turn a significant
and radical strategic corner to reinvent ourselves and place the
Group back on a new positive trajectory, that is sustainable,
modern and profit-generating.
Bolstered by this vision, we will approach 2025 on the basis of
three major decisions that reflect the Group’s purpose1:
- A radical modernisation and wide-reaching
premiumisation of our offer, underpinned by additional investments
relative to the previous plan and rounding out the more than €700
million renovation programme mainly financed by their owners at the
Center Parcs domains.
- The switch from a host-based offer to a
100% experience-based offer, that is more digital, personalised and
service-oriented.
- Ambitious and responsible property
development, with new concepts, placing our property development
expertise at the service of customer experience.
Our strategy, co-constructed with our business lines, is set to
result in robust earnings growth and increased cash generation.
Today we are a key player in family tourism in Europe. Tomorrow
we will be the leading pioneer for a new reinvented local tourism
that is modern, fun, enchanting and compelling”.
“Réinvention 2025”: strategic decisions and associated
targets
Premiumisation & modernisation
- Additional and continuous investments: €430
million financed by the Group over 5 years, 60% of which for the
Center Parcs domains,
- A massive renovation plan for the Center
Parcs domains: €715 million financed for 90% by our institutional
partners, for the renovation of 100% of the domains:
- Change in mix: 62% of accommodation in the
premium category or higher in 2025 (+16pts vs 2019), - Target
growth in RevPar of 35%, reinforced by our renovation track-record,
(+43% noted for the 7 latest domains renovated),
- Further streamlining of the Pierre &
Vacances network, with a strategy adapted by site category
(extensive renovation of 18 top and mid-performing residences
representing €16 million in capex over two years, for a RevPar
growth target of 23% for the sites renovated).
Switch to 100% experience-based offers
- Accelerating the deployment of “Family
booster”2 activities at all the Center Parcs domains,
- Boosting on-site sales: growth in pre-stay
activity reservations, new leisure and catering offer based on
discovery and nature, flexibility and revenue management,
- A digitalised offer for a fluid customer
experience,
- Overhaul of the customer journey and the
sales strategy (pricing, revenue management and CRM),
- A new campsite range for a “slow tourism”
offer
- Two new “well-being” and “organic/local”
strategic partnerships by the end of June-2021.
Ambitious and responsible development serving the customer
experience,
- Property development, a business partner
serving a qualitative and quantitative development of the tourism
offer: dynamic development of new projects and renovation works in
France and Europe,
- A deliberate choice: investment rate3
representing 30% of accommodation revenue,
- Project selectivity: priority on renovation
and smaller sized development projects better integrated into their
environment,
- Developing alternative contract methods to
leases: management contracts and franchises,
- New Lifestyle, Eco-resorts, Premium
concepts, representing 90% of property development margin.
Financial performance4
- Revenue anticipated from the tourism
businesses of €1,838 million in 2025 (€1,587 million in 2023), up
€473 million relative to 2019, 80% generated by the Center Parcs
domains.
- A reduction in support function expenses to
reach 7.5% of revenue in 2025 (vs. 12.6% in 2019): €24 million in
additional savings (on top of the €30 million initiated by the
Change Up plan), €13 million of which on IT tools. A €32 million
capex plan will support delivery of these cost savings.
- Target Group EBITDA of €275 million in 2025
(€146 million in 2023), €255 million of which generated by the
tourism businesses (more than 75% of which related to Center Parcs
Europe) and €20 million by the property development activities.
Current operating margin on the tourism businesses ought to reach
5% in 2023 and 10% in 2025.
- Cash flows before financing of €176m in
2025 (€49 million in 2023), or operating cash generation of €273
million over 2022-2025.
Additional financial information, especially concerning revenue,
EBITDA and operating cash flows over the period 2019-2025, as well
as the financial elements summarising the terms of the new
financing concluded with creditors and the envisaged liquidity
position of the Group between June 2021 and September 2022 based on
the main assumptions retained, are presented in the Appendix to the
detailed presentation on the “Reinvention” strategic plan. It is
specified, in particular, that the financial data communicated for
the 2021 fiscal year in this presentation constitutes
forward-looking data established on April 15, 2021 as part of the
conciliation procedure and which remains subject to significant
uncertainties related in particular to the resumption of activity
of the group. These figures do not include the result of the
ongoing discussions with the various partners of the group nor the
possible State indemnity schemes currently being investigated and
therefore do not constitute either an objective, an estimate or a
forecast or estimate.
This presentation is available on Pierre & Vacances-Center
Parcs Group website (www.groupepvcp.com) in the “Presentations”
segment.
Prospective information
This press release contains prospective information relative to
the targets and strategy of the Pierre & Vacances Center Parcs
Group.. Although Pierre & Vacances-Center Parcs’ management
considers that this prospective information is based on reasonable
estimates, forecasts and assumptions, it provides no guarantee as
to the future performance of the Pierre & Vacances Group. The
actual results may be very different to these prospective
statements, due to a certain number of risks and uncertainties,
known or unknown at the present date, the majority of which are out
of the control of the Pierre & Vacances Center Parcs Group, in
particular risks related to the economic environment and the health
situation in which the Group is active, delivery of the strategic
plan and the risks described in the documents registered by Pierre
& Vacances Center Parcs with the AMF, including those set out
in section 2.2 of the Group’s Universal Registration Document
registered with the AMF on 22 December 2020 under the number
D.20-1016. Copies of the Universal Registration Document are
available free of charge at the Pierre & Vacances head office
and on the Pierre & Vacances and AMF websites
(www.groupepvcp.com).
1“As the European leader in local tourism, we are committed to
helping people get back to basics in a protected
environment”. 2 Family Booster (n.): providing energy
stimulus and boosting good family vibes; strengthening family ties
that provide the key to happiness. 3 Investment rate: percentage of
rents paid by owner lessors relative to accommodation revenue 4 The
full financing of the strategic plan remains dependent on an
operation to strengthen the Group’s share capital, with the new
financing envisaged of up to €300 million granted by the Group’s
creditors (see press lease of 10 May 2021) primarily destined to
cover its operating needs, excluding investments set out in the
ReInvention plan. The targets mentioned in this strategic plan take
precedence over all other targets previously communicated by the
Group.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210517006034/en/
For further information:
Investor Relations and Strategic Operations Emeline Lauté
+33 (0) 1 58 21 54 76 info.fin@groupepvcp.com
Press Relations Valérie Lauthier +33 (0) 1 58 21 54 61
valerie.lauthier@groupepvcp.com
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