Center Parcs Investor Presentation - RNS Submit2016/06/24  · Center Parcs Investor Presentation Interim Results: 52 weeks to 21st April 2016 27th June 2016 Sections 1. Overview 2

Center Parcs

Investor PresentationInterim Results: 52 weeks to 21st April 2016

27th June 2016

Sections

1. Overview 2

2. Key Financial Highlights 4

3. Capital Investment and Projects 10

4. Summary 19

Appendix: Financial Calendar and Contacts 21

1

Section 1

Overview

Center Parcs Overview

Strong Q4 Performance

Revenue and EBITDA(1) growth of 9.1% and

10.0% respectively.

Excellent growth in Q4 despite more off-line

accommodation.

Total capex of £63m, reflecting increased

investment spend under new ownership.

Positive forward bookings(2)

FY17 – 54.3% of FY17 capacity booked (FY16:

51.7%), with strong ADR growth continuing.

Total capex planned to increase to c.£85m for

FY17.

FY16 Q4 Highlights

Outlook

(1) before owners’ costs and exceptional items

(2) bookings as at 17th June 2016

(3) as at 21st April 2016

Edinburgh

872 4,690

WhinfellOpened 1997

SherwoodOpened 1987

877 4,604

ElvedenOpened 1989

879 4,558

LongleatOpened 1994

799 4,208

Holiday village

Lodges/Apartments(3)

Guest capacity(3)

Woburn Opened 2014

706 3,676

Total

4,133

21,736

Sunderland

Leicester

Manchester

London

Birmingham

Liverpool

Leeds

Bristol

1.1

3

Section 2

Key Financial Highlights

Key Financial Highlights: Financial Year 2016

5 Villages 5 Villages 4 Villages

Full Year

Q4

% change

v FY15 Full Year

% change

v FY15

% change

YTD v FY15

£119.2m 5.9% Revenue £420.2m 9.1% 5.8%

£50.8m 6.7% EBITDA(1) £198.2m 10.0% 4.1%

42.6% 0.3% Operating Margin(1) 47.2% 0.4% 0.7%

97.0% 0.8% Occupancy 97.7% 0.8% 0.3%

£150.72 7.8% ADR £167.31 4.9% 5.3%

£146.15 6.9% RevPAL £163.51 5.8% 5.7%

(1) before owners’ costs and exceptional items

strong performance across all KPI’s; record year for occupancy

2.1

5

Revenue Performance: Financial Year 2016

5 Villages 5 Villages 4 Villages

Q4% change

v FY15 Full Year % change

v FY15 % change

Full Year

£m Revenue £m

67.6 +7.1% Accommodation 245.7 +8.7% +5.8%

51.6 +4.2% On-village 174.5 +9.6% +5.9%

119.2 +5.9% Total 420.2 +9.1% +5.8%

Accommodation

• Strong end to the year in Q4, despite more off-line accommodation.

• All villages continue to perform strongly.

• ADR on forward bookings in new financial year continuing positive recent trends.

On-village

• Good growth in on-village spend, despite impact of off-line accommodation.

• All on-village revenue divisions in growth.

• Healthy forward bookings for the new financial year.

2.2

6

Village Performance: Full Year FY16

Sherwood Elveden Longleat Whinfell Woburn(1) Central

Overheads

Group

Occupancy 97.5% 98.8% 97.9% 97.2% 97.2% 97.7%

% change v FY15 +0.0% +1.2% +0.6% +(0.3)% +2.0% +0.8%

Revenue £m 87.4 88.2 83.0 79.6 82.0 420.2

% change v FY15 +5.4% +6.1% +6.5% +5.2% +25.0% +9.1%

EBITDA(2) £m 48.3 46.7 43.4 40.6 44.4 (25.2) 198.2

% change v FY15 +5.9% +6.6% +8.8% +6.0% +26.5% +12.0% +10.0%

1. Occupancy: record annual performance of 97.7%.

2. Revenue: consistently strong performance at all villages.

3. EPTDA: all villages now delivering EBITDA >£40m p.a.

(1) Woburn prior year numbers only include trading performance for 44 wks vs. 52 wks in the current year.(2) before owners’ costs and exceptional items

1.

2.

3.

2.3

7

Financial Ratios and Covenants(1)

1. Free Cash Flow £m 12 months to

21 Apr 2016

EBITDA(2) 198.2

Owners’ costs (0.4)

Change in working capital 8.9

Tax paid (1.0)

Covenanted Maintenance capital(3) (18.5)

187.2FCF

2. Pro-forma Debt Service £m

Class A Interest payable items(4)

Class B total Interest payable

46.3

39.2

85.5Total Interest Payable Items

2.4

8strong free cashflow enabling £23m dividend to be paid in Q4

1) All ratios and covenants calculated on a pro-forma basis, which assumes the current financing structure was in place for the 52 wks ended 21 Apr 2016

(2) Before owners’ costs and exceptional items

(3) As per covenant definition of minimum spend required

(4) Includes liquidity facility fees and is net of interest receivable

Financial Ratios and Covenants(1)

3. Financing Ratios £m(2) EBITDA

Multiple

Gross Debt

Cash

Net Debt

1,491.2

(47.7)

1,443.5

7.5x

7.3x

4. Financial Covenants Actual Default

Covenant

RPC

Test

(i) Class A - FCF : DSCR

(ii) Class B - FCF : DSCR

4.0x

2.2x

1.1x

1.0x

1.35x

(1) All ratios and covenants calculated on a pro-forma basis, which assumes the current financing structure was in place for the 52 wks ended 21 Apr 2016

(2) Excludes debt issue costs of £25.0m

increased and significant headroom above default covenants

2.5

9

Section 3

Capital Investment and Projects

Capital Investment(1) FY16

£13.2m

Maintenance

Capital

£23.5m

(FY15: £24.2m)

Total Investment

Capital

£39.7m

(FY15: £18.7m)

(1) Capex numbers are based on a cost incurred rather than a cash flow basis

investment accelerating under new ownership

Total £63.2m(FY15: £42.9m)

3.1

11

1. Investment Projects

2. Accommodation upgrades

Maintenance Capital

3. New builds

F&B: Restaurant and Bar recent upgrades in FY16

Whinfell

Elveden

Sherwood

ElvedenLongleat

12

3.2

Retail Refurbishments

Elveden Treats – Completed April 2016 Sherwood Parcmarket – on site June 2016

13

3.3

Leisure Capex Spend (£000’s)

Village FY 16

Actual

FY 17

Forecast

Sherwood 265 365

Elveden 202 490

Longleat 106 271

Whinfell 351 100

Woburn 1,057 593

Total 1,981 1,819

Grotto (WO)

Pottery extension (WF) Aerial Adventure upgrade

Indoor Climbing

Adventure

Sensory Adventure - (EF)Woodland wheelers

Electric boat additions

Mini trek (SF)

14

3.4

New Leisure Activities

Woodland Wheelers

at Elveden

Street cars at

ElvedenOff road Explorers at Sherwood

28

Recently introduced activities

15

3.5

Further Leisure Innovation

Mini Captain’s Adventure

The Drop

29

New activities to be introduced

16

3.6

1. Project Spring - planned upgrades in FY17

No. of

Units

Cost

£m

Start

Date

Expected

Completion

Longleat Lodges 40 4.0 Apr’16 Jul’16

Whinfell Lodges 47 2.8 Apr’16 Jul’16

Longleat Redwood Apartments 36 2.3 Sept’16 Dec’16

Sherwood Lodges (incl. 29 x conversions to Execs) 35 2.4 Sept’16 Dec’16

Whinfell Lodges (incl. 30 x conversions to Execs) 50 3.9 Sept’16 Dec’16

208 15.4

2. Project Summer

Elveden Lodges 125 3.4 Mar’16 Jun’16

Accommodation upgrade programme

All Project Spring upgrades expected to be complete by Dec ’16(1)

(1) With the exception of the Hotel at Elveden, which is due to be redeveloped.17

3.7

Village Type No. Total

Cost

£m

On Site Expected

Opening

Sherwood 4 bed Exclusives 6 2.8 May-15

Opened

Jan-16

Elveden Treehouses 4 3.7 Sep-15 Jul-16

Elveden 1 bed apartments 48 6.1 Nov-15 Oct-16

Woburn Executive Lodges 18 3.8 Nov-15 Aug–16

76 16.4

2. Due on site during FY17

Woburn Executive Lodges 57 11.4 Sept-16 Aug-17

Whinfell Exclusive Lodges 10 4.7 Oct-16 May-17

Longleat Executive Lodges 6 1.4 Sept-16 Apr-17

73 17.5

26

New Builds update

New builds progressing to plan

1. New build accommodation currently on site

18

3.8

Section 4

Summary

Summary

Strong underlying Q4 performance for both accommodation and on village spend.

Full year results reflecting record occupancy of 97.7%, and 10.0% growth in EBITDA.

Higher annual capex spend of £63m, expected to increase to c£85m in FY17.

Strong forward bookings – occupancy ahead of prior year for FY17, combined with excellent

growth in ADR.

4.1

20

• 27th June 2016

Full year results FY16 for 52

weeks to 21st April 2016

• Late August 2016

Quarter 1 results FY17 for 12

weeks to 14th July 2016

• Mid November 2016

Quarter 2 results FY17 for 24

weeks to 6th October 2016

• Paul Mann

Group Financial Accountant

Tel: 01623 821 649

Email: [email protected]

• April Stobbart

Deputy Company Secretary

Tel: 01623 821 867

Email: [email protected]

• Paul Inglett

Finance Director

Tel: 01623 821 621

Financial Calendar and Contacts

Financial Calendar Contacts

21