Investor Presentation

Transcription

1 Investor Presentation March, 2016

2 Disclaimer This material has been prepared exclusively for informational and promotional purposes. Its intention is to inform about the business strategy of Tatry mountain resorts, a.s., with its registered office at Demänovská Dolina 72, Liptovský Mikuláš , Identifications Number: , registered in the Commercial Registry of District Court of Žilina, Section: Sa, Insertion No. 62/L (hereinafter referred to as TMR ). TMR s shares are listed on the parallel market of the Bratislava Stock Exchange and on the main markets of the Prague Stock Exchange and the Warsaw Stock Exchange. The company s share capital consists of bearer shares booked on the bearer with a nominal value of 7 per share. TMR has been allocated ISIN SK Information contained in this material is based on historical data and may contain forecasts of future performance. Predictions are based on rational expectations supported by objective data. Predictions are not reliable indicators of future performance and they are not binding. TMR is not liable for any of the predictions contained in this material. Future figures of TMR can differ from predictions given in this presentation. This material is owned exclusively by TMR. Any distribution, duplication, publishing, copy or record of this information, or any part of it contained in this material is forbidden without prior approval oftmr. Any distribution of this presentation or any part of it beyond the territory of the Slovak Republic can be either restricted, or prohibited by law of the third state. 2

3 3 We are here to revolutionize tourism in Central Europe!

4 TMR at a Glance Leading and the only Alpine style mountain tourism services provider in the CEE region Natural monopoly no mountains comparable to the Tatras in the region Increasing quality with infrastructure investments of EUR 206 million during the last nine years Significant (double digit) increases in revenues (CAGR 22%) and EBITDA (CAGR 30%) in the last five years as a result of investments, acquisitions, and strong pro-customer orientation 4

5 TMR s Strategy Who We Are and What We Do 5

6 Our Potential Long History of Tourism in the Tatras Cultural and Natural Heritage 6

7 Challenges Mountain Resorts in

8 Who We Are Today 8

9 Business Model Overview I. MOUNTAIN & LEISURE Segment (M&L) Mountain Resorts 3 resorts in the High and Low Tatras (SK), and Poland (97%) Leisure Parks 23% Revenues by Segments* 1,7% Aquapark Tatralandia (SK) Silesian Amusement Park (75%, PL) Dining 27 dining facilities on and off the slopes Total chair capacity of 3,630 Sports Stores & Services Tatry Motion Ski schools, 1,577 m2 of total retail space, 1,259 rental skis & snowboards 75% M&L Segment Breakdown 19% 17% II. HOTELS Segment 9 owned and managed hotels 694 rooms, 2,000 beds Luxurious wellness spa facilities Ongoing hotel upgrades, additions 17 luxury apartments Grand Residences Tatranská Lomnica III. REAL ESTATE Segment 4 hotels leased to third parties Sale of recreational real estate Holiday Village Tatralandia, Chalets Jasná Otupné 7% 57% Mountain Resorts Leisure Parks Dining Sport Services & Stores 9 M&L Hotels Real Estate * FY 2014/15

10 Mountain Resorts Vysoké Tatry (The High Tatras, SK) Tatranská Lomnica Starý Smokovec Štrbské Pleso 24 km of ski trails 20 cableways and lifts Max. transportation capacity of more than 21,615 persons/hour 20 km of ski trails with snowmaking Summit elevation: 2,625 m a.s.l. Base elevation: 805 m a.s.l. Vertical drop: 1,820 m 10 dining facilities Tatry Motion stores & services Jasná Nízke Tatry (The Low Tatras, SK) Chopok North Chopok South 49 km of ski trails 30 cableways and lifts Max. transportation capacity of 32,484 persons/hour More than 29 km of ski trails with snowmaking Summit elevation: 2,004 m a.s.l. Base elevation: 880 m a.s.l. Vertical drop:1,124 m 15 dining facilities Tatry Motion stores & services Szczyrkowski ošrodek narciarski / SON (Beskids, PL) 97% interest EUR 30m of investments planned 25 km of ski trails 13 cableways and lifts Max. transportation capacity of 8,700 persons/hour. 11 km of ski trails with snowmaking Summit elevation: 1,211 m a.s.l. Base elevation: 620 m a.s.l. Vertical drop: 591 m 10

11 Leisure Parks Aquapark Tatralandia (Liptov, SK) 14 (10 year-around) swimming pools with thermal, sea, and clear water 21 steam, water and masage saunas, baths and procedures 26 toboggans and waterslides (6 year-round) and 300 other attractions Tropical Paradise, Wellness Paradise, Funpark Tatralandia Silesian Amusement Park/ Śląskie Wesołe Miasteczko (75%, PL) Location: Park Śląski (Silesian Park) at Chorzów, PL Area: 26 ha 42 attractions The largest and oldest park in Poland Planned investments EUR 30 mil. Hotel Holiday Village Tatralandia 6 dining facilities 11

12 Hotels Hotels - The High Tatras Grandhotel****, Starý Smokovec Grandhotel Praha****, Tatranská Lomnica Hotel FIS***, Štrbské pleso Hotels The Low Tatras Wellness Hotel Grand Jasná**** Chalets Jasná De Luxe**** Tri Studničky Hotel**** Holiday Village Tatralandia Hotel Srdiečko** Hotel Rotunda 12

13 Real Estate Lease of hotels and lodging facilities to third parties Hotel Slovakia Hotel Liptov Sale of recreational real estate Holiday Village Tatralandia Chalets Jasná Otupné construction, sale, operation Hotel Ski & Fun Záhradky Kosodrevina Lodge 13

14 Our Market Potential 14 Natural monopoly position (no other similar places in the region to provide the Alpine resorts feel except for the Tatras) No competition within 1000 km east of TMR resorts 7.5 million people living within 200 km Long tradition of visitors from CEE Easy access by plane More affordable than Alpine resorts Target Groups (through): Slovaks (massive marketing campaigns) Polish (massive marketing campaigns) Czech (still benefiting from the common past; no language barrier) Russian-speaking (driving distance unlike Alpine resorts) New markets (Baltic & UK via new airline connections) 3% 2% 2% 2% Segmentation Visitors in the High Tatras During Winter 2014/15 9% 14% 68% Slovakia Poland Czech Rep. Hungary Russia Ukraine Other Affluent clientele Luxury and prestige of the hotels in the High Tatras Mainstream Jasná, Nízke Tatry tailored to the young, families, and sports enthusiasts

15 Thousands Great Potential in Regional Mountain Tourism Skiers by Country % % % % % % % % 0 Slovakia Poland Czech Republic Ukraine Russia Austria Switzerland Germany 0% No. of National Skiers Skiers as % of Population 15 Source: Vanat, Laurent International report on mountain tourism

16 Client Target Area in SK, Neighbors, and East 16

17 Our Strategy Based on 3 Pillars Increasing quality with investments Strategic acquisitions and expansion of operation in CEE Constant operations & services enhancement EUR 206 million over 9 years New modern cableways Renovating hotels Expanding resorts Capitalizing on completed investments Modernization of SON and Silesian Amusement Park Aquapark Tatralandia 2011 Špindlerův Mlýn ski resort (9.5%, CZ) Korona Ziemi (7%, PL) SON ski resort, PL 2014 Silesian Amusement Park (75%, PL) 2015 Enhancing customer experience through synergies Focus on affluent clientele Trendsetter in the region Quality management GOPASS loyalty program and e-shop 17

18 thousands Our Assets Grow through Capital Investments Total of EUR 206 million invested into development of our resorts and hotels in the last 9 years 2013 ends Investment phase I The New Era of the Tatras EUR 190 mil. invested Transportation capacity increased by 17,000 to total 54,069 persons/ hour 10 newly built ski lifts, total 50 Additional 25 km of snowmaking, total 50 km 671 snow guns 25 dining facilities built on slopes Fixed Assets CAPEX Breakdown Investment Phase I 1% 9% 0% 5% 4% 81% Mountain Resorts Aquapark Dining Sport Services & Stores Hotels Real Estate 18

19 2012 Investments CAPEX of EUR 44 million Funitel Jasná Nízke Tatry Tropical Paradise Tatralandia seat Kosodrevina, Chopok, Jasná Nízke Tatry Tropical Paradise Tatralandia

20 2013 Investments CAPEX of EUR 45 million New conference hall - Wellness Hotel Grand Jasná Chalets Jasná de Luxe**** Rotunda, Jasná 15-seat gondola, Vysoké Tatry 20

21 Quality in Business and Marketing - CRM Customer Card Ski Pass Direct Marketing A customer card offering customized products: Accommodation - Ski Pass - Dining - Aquapark - Rental - Ski School A personalized online ski pass / aqua pass at more favorable rates without queuing at cash desks Registration takes just 2 minutes For purchase bonus points loyalty program A direct marketing tool An efficient sales channel 20% of all skier days sold in Jasná and VT in 2014/15 Sales Channel 21

22 Operational Overview What We Have Achieved and How 22

23 What Drives Our Revenues KPIs Revenue Growth 23

24 Occupancy (%), Price (EUR) Thousands Stable Growth in Annual KPIs, Increased Visit Rate 14/15 Also Thanks to Favorable Winter Visit Rate in Mountains and Leisure* 2010/ / / / / Average Revenues per Visitor** 2010/ / / / /15 Mountain Resorts Leisure Parks Leisure Parks Mountain Resorts Dining Sports Services & Stores KPIs of Hotel Portfolio / / / / /15 Occupancy (%) ADR (EUR) 24 * Aquapark Tatralandia was acquired on 01/04/11, Silesian Amusement Park on 01/05/2015 ** per given period fiscal year

25 thousands Avg. ticket price in resorts Jasná and Vysoké Tatry thousands Avg. ticket price in resorts Jasná and Vysoké Tatry Impact of Ticket Pricing on TMR s Growth Annual increase of ticket prices is justified with extensive CAPEX invested into development of TMR resorts and hotels 5-year CAGR: Operating revenues* +22% EBITDA* +30% Average ticket price +3.6% Operating Revenues vs. Ticket Pricing 2010/ / / / / M&L Hotels Real Estate 1-day ticket price EBITDA vs. Ticket Pricing 2010/ / / / / M&L Hotels Real Estate 1-day ticket price 25 *Operating results are adjusted for one-off and non-operating items

26 1-day Ticket Price ( ) Strategic Product Position, Closing in on Alpine Resorts 55 Trails (km) Market Positioning in Europe in Winter 2014/15 Gastein; 86 Ischgl; 238 Val Gardena; Stubaier Gletscher; 62 Livigno; PKL / Kasprowy Wierch; 14 Jasná - TMR ; Vrátna; 12,55 25 Pec pod Sněžkou ; Szczyrk; 25 Vysoké Tatry - TMR; 24 Špindleruv Mlýn; 25 Białka Tatrzańska ; Capacity ('000 persons/hour) 26

27 Financial Overview How We Look Like in Numbers 27

28 thousands Growth Results Confirm Our Strategy Key Operating Results* Plan ,4% 40% 35% % % % % / / / / /15p 2014/15 Revenues EBITDA EBITDA Margin 10% 28 * For better evaluation of the operating performance, the operating results are adjusted for one-off items and nonoperating items.

29 thousands thousands Operating Results by Segments Revenues EBITDA CAGR +22% CAGR +30% / / / / / / / / / /15 Mountain Resorts Dining Hotels Leisure Parks Sports Services & Stores Real Estate Mountain Resorts Dining Hotels Leisure Parks Sports Services & Stores Real Estate 29

30 thousands Financial Position Liquidity Current liquid funds* EUR 8.2m Assets Total assets EUR 360.9m Fixed assets EUR 272.8m Level of Debt Total debt EUR 222.4m Total debt-to-capital (D/C) ratio 68.3% Bonds issued EUR 180m used to finance share capital decrease Bank debt EUR 37.9m Equity Total equity EUR 103.3m Share capital EUR 47.0m Current Assets 13,1% Assets Breakdown as of 31/10/2015 Other Non- Current Assets 11,3% Financial Position Fixed Assets 75,6% Total Assets Fixed Assets Debt D/C 80% 70% 60% 50% 40% 30% 20% 10% 0% 30 * Current liquid funds include cash & cash equivalents

31 Overall Financial and Market Performance TMR Stock Performance at BSSE Key Cons. Data in EUR FY 2014/ 15 FY 2013/ 14 FY 2012/ 13 FY 2011/ 12 FY 2010/ 11 Revenues 70.9m 56.3m 54.3m 43.8m 38.8m EBITDA 24.4m 18.4m 18.6m 14.0m 12.2m Net Profit m 6.6m 10,2m 9.2m EBITDA margin 34.4% 32.7% 34.2% 31.9% 31.5% EPS Net Dividend m 6.4m DPS TMR Market Overview at BSSE*: One-year max.: EUR One-year min.: EUR One-year return: 10.5% Dividend yield: N/A D/E ratio 215.3% 223.0% 210.0% 5.8% 6.6% 31 * As of 31/10/2015

32 Outlook & Future Growth Where We Go from Here 32

33 Strategic Goals for Medium Term Increasing quality with investments Investments in development of the new Polish operations Silesian Amusement Park and resort Szczyrkowski ošrodek narciarski Chalets in Jasná Holiday Village Tatralandia Jasná Center Corporate Strategy Customer loyalty program GOPASS Future potential in real estate projects Focus on quality improvement in our resorts Client Relationship Management Hotel upgrades Hotel capacity addition (Jasná) 33

34 Appendices Shareholder Structure Key Operating Results Consolidated Income Statement Financial Position 34

35 Shareholder Structure C.I. CAPITAL INDUSTRIES LIMITED 8,8% 7,0% 18,8% J&T SECURITIES MANAGEMENT LIMITED 9,5% BELGOMET, s.r.o. 9,9% 15,6% Small shareholders KEY DEE LIMITED 15,0% 15,4% TINSEL ENTERPISES LIMITED RMSM1 LIMITED Mgr. Miroslav Voštiar 35 * As of 31/10/2015

36 Key Annual Operating Results by Segments* Key Operating Results* Revenues EBITDA in ' / /14 Change yoy (%) 2014/ /14 Change yoy (%) Mountains & Leisure ,8% ,9% Mountain Resorts ,9% ,2% Leisure Parks ,0% ,2% Dining ,6% ,1% Sports Services & Stores ,0% ,1% Hotels ,3% ,6% Real Estate ,7% ,9% Total ,9% ,2% 36 * Operating results 2013/14 are adjusted for one-off items and non-operating items.

37 Consolidated Income Statement Selected Consolidated Results (IFRS) For the Year Ended October 31 in ' / /14 Sales Other Operating Revenues Total Revenues Cost of Sales Personnel and Operating Costs Other Gain/ Loss EBITDA EBITDA Margin 34,4% 32,7% Depreciation & Amortization EBIT Interest Income Interest Expense Income from Financial Instruments, net Negative Goodwill Pre-tax Income Income Tax Net Profit Currency Translation Differences Total Comprehensive Income EPS ( ) -0,101 0,102 37

38 Financial Position October 31 Financial Position in ' / /14 Total Assets Non-current Assets Fixed Assets Other Non-current Current Assets Liquid Assets Equity Liabilities Non-current Liabillities Current Liabilities Total Debt