Financial year 2022-2023

Improved financial performance

• EBITDA up 3.1% on a comparable basis and excluding non-recurring items, despite a very sharp rise in the price of electricity
• Positive free cash flow from operations
• Increased impact of MMV integration on these two indicators
• Proposed dividend of €0.91 per share, up 10% vs. 2021/222

Réduced carbon footprint

• Significant reduction in CO2 emissions (scope 1 and 2)[1], down 34% vs. 2021/22 and 39% vs. 2018/19
• 14 points ahead of the reduction trajectory presented in October 2022
• CO₂ emissions per skier day[2]: 320 grams, down 72% vs. 2021/22
• CO₂ emissions per overnight stay[3]: 950 grams (first year of MMV evaluation)
• CO₂ emissions per park visit4: 1,130 grams, down 12% vs. 2021/22

(For comparison, CO₂ emissions to produce 1 kg of apples from France = 320 grams[4])

Outlook for 2023/24

• EBITDA up by at least 7% vs. 2022/23 EBITDA excluding non-recurring items
• Industrial investments of around €270 million
• Increase in free cash flow from operations
• Additional 15 points reduction in CO2 emissions (scope 1 and 2) vs. 2022/23, i.e., a reduction of around 54% vs. 2018/19

 

[1] CO₂ emissions under audit by the Group's statutory auditors  
[2] CO₂ emissions from the Ski Areas & Outdoor Activities division, based on the number of skier-days
[3] CO₂ emissions of MMV Group (Distribution & Hospitality) in relation to the number of overnight stays in accommodations operated by the MMV Group
⁴ CO₂ emissions from the Leisure Parks division, based on the number of park visits and overnights stay sold
[4] Source: Food GES Ademe

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The Board of Directors of Compagnie des Alpes, chaired by Gisèle Rossat-Mignod, met on December 4, 2023 to approve the Group's audited consolidated financial statements for the 2022/23 financial year ended September 30, 2023.

 

Commenting on the results for the 2022/2023 financial year, Dominique Thillaud, CEO stated: " Compagnie des Alpes posted very solid results and growth, despite an unprecedented and sudden "electricity price shock". The Group was able to react by absorbing, and even exceeding, this inflationary pressure . On a like-for-like basis and excluding non-recurring items, our sales recorded double-digit organic growth, and our EBITDA rose by more than three percentage points.

 Collectively, we are proud to be well ahead of schedule on the Group's journey towards Net Zero Carbon by 2030 (scope 1 and 2 - without any carbon offsetting). The use of 2nd generation HVO 100 biofuel by the snow groomers in our ski areas is a reflection of all the actions, large and small, that we are taking to 

drastically reduce our carbon footprint. Reducing greenhouse gas emissions, for our activities and using existing technologies, is possible and it's already happening!

 Whether in economic or environmental terms, the unfailing commitment of our teams and partners has been a key factor in improving our performance.

 The year was also marked by the announcement of our 10 Commitments and 5 Renunciations, the concrete expression of our Raison d'Etre: to embrace our shared vision of our businesses and to commit, individually and collectively, to the creation of value, in the plural.

 In conclusion, the 2022/23 financial year demonstrated the virtuous dynamic of our strategy and bolstered our confidence in the future.”

• In 2022/23, the Group recorded non-recurring items with a positive impact of €4.5 million on Group EBITDA (including €3.7 million for Leisure Parks).
• The breakdown of FY 2021/22 results by division has been adjusted to reflect the new reporting format adopted since the start of FY 2022/23 (creation of a third "Distribution & Hospitality" division, disappearance of the "Holdings & Support" division).
• Non-recurring items: positive impact of €42.6 million on Group EBITDA 2021/22, reflecting a positive impact of €5.8 million on sales (residual "no show" leisure park tickets from the Covid period) and a positive impact of €36.8 million on operating income and expenses (insurance indemnities, grants, and payroll tax exemptions) split into €10.0 million for Ski Areas & Outdoor Activities, €1.0 million for Distribution & Hospitality, and €25.9 million for Leisure Parks). In 2022/23, no impact on sales; positive impact of €4.5 million on Group EBITDA (including €3.7 million for Leisure Parks).
• The change on a comparable basis excludes MMV, consolidated as from October 1, 2022 (Distribution & Hospitality), the Chalet Time real estate agency in Val d'Isère, acquired in January 2023 (Distribution & Hospitality), and the Arc Aventures ski school acquired in financial year 2022/23 (Ski Areas & Outdoor Activities).

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Financial results for financial year 2022/23

 

Group consolidated sales amounted to €1,125.5 million for financial year 2022/23, growth of 17.4% on a reported basis and 9.9% on a comparable basis (i.e., essentially excluding MMV) compared with 2021/22. Excluding non-recurring items reported in 2021/22, growth was 10.6% on a comparable basis, reflecting strong growth across all Group divisions.

 

• Sales for Ski Areas & Outdoor Activities came to €489.2 million, up 7.2% on FY 2021/22 (+7.1% on a comparable basis). Sales of ski lifts rose by 7.8% to €465.9 million. This growth was driven primarily by a 5.9% rise in average revenue per skier-day, mostly due to the impact of inflation, including the partial pass-through of higher electricity costs to ski pass prices, and a 1.8% increase in the number of skier-days (12.5 million) in a national ski market down 5%[1].

 

• Sales for Distribution & Hospitality reached €110.3 million, compared with €32.9 million for the previous year. The division's three components (tour operators, real estate agencies, and MMV, which was not consolidated in 2021/22) all achieved significant growth during the year. On a comparable basis (i.e., excluding MMV and Chalet Time), divisional sales were up 18.1% over financial year 2021/22.

 

• The Leisure Parks division enjoyed another dynamic year. Sales reached €525.9 million, up 12.0% over the previous year. Excluding non-recurring items reported in 2021/22, sales were up 13.4%. This performance is the result of both a 5.2% increase in visitor numbers (10.6 million visits) and an almost 7% rise in spending per visitor. The Group is reaping the rewards of its efforts to attract visitors as well as its ongoing optimization of site operations (extension of opening periods, improved visitor experiences, and park offerings).

 

Despite a more than twofold increase in energy costs (€72.1 million in 2022/23 vs. €35.1 million in 2021/22), the Group's Earnings Before Taxes, Depreciation, and Amortization (EBITDA) reached €307.7 million, compared with €312.6 million the previous year. On a comparable basis and excluding non-recurring items, it increased by 3.1%. It will reach €278.4 million in 2022/23, exceeding the Group's initial target of almost €270.0 million in 2021/22, excluding non-recurring items and the integration of MMV. On a comparable basis, the rise in energy-related costs amounted to €31.9 million (including €31.1 million for electricity costs alone, with the Ski Areas accounting for 90% of this increase); on a comparable basis and excluding non-recurring items, however, the ratio of other operating expenses (personnel costs, maintenance and repairs, marketing, purchases, and other) to sales fell by 0.8 points.

 

The Group's EBITDA margin will thus be 27.3%, compared with 32.6% in 2021/22. Excluding non-recurring items, it would be 26.9% in 2022/23, compared with 28.3% for the same period last year. This represents a limited decline of 1.4 percentage points, while the rise in energy costs from 3.7% to 6.4% of sales affects the EBITDA margin rate by 2.7 points.

 

• EBITDA for the Ski Areas & Outdoor Activities division reached €151.1 million, down 11.4% versus 2021/22, but down only 5.9% excluding non-recurring items, despite a 2.5-fold increase in electricity costs, which rose by €28.0 million, from €18.8 million to €46.8 million. Operating expenses excluding energy rose by only 4.8% excluding non-recurring items, limiting the decline in the EBITDA margin excluding non-recurring items to 4.3 points, at 30.9%.

 

Benefiting from the integration of MMV, Distribution & Hospitality EBITDA reached €23.0 million, compared with €0.7 million in 2021/22. On a comparable basis and excluding non-recurring items, the 

• division's EBITDA rose from -0.2 €M in 2021/22 to -1.9 €M in 2022/23. On a current scope basis, the consolidation of MMV is highly accretive to the EBITDA margin rate, which stands at 20.8%.

 

• EBITDA for Leisure Parksreached €140.1 million, down 6.1% versus 2021/22, and up 16.1% excluding non-recurring items. The latter include insurance compensation payments received in 2021/22 following the floods that affected the Belgian sites of Walibi Belgium and Aqualibi in July 2021. Adjusted for all non-recurring items received in 2021/22 and 2022/23, the EBITDA margin rate for Leisure Parks rose by 0.6 points to 25.9%, despite higher operating expenses linked to energy, inflation (particularly on food products) and business growth.

[1] French Ski Areas – 2023 indicators and analysis – October 9, 2023

 

Depreciation and amortization increased by 20.0% to €28.7 million, due particularly to the impact of the consolidation of MMV, whose depreciation and amortization amounted to €21.2 million in 2022/23, 2/3 of which concerned the amortization of IFRS 16 rights of use.

 

The Group also recorded other operating income of €4.0 million, relating mainly to the termination indemnity for the 2 Alpes public service concession following the judgment handed down last August.

 

Group operating income thus came to €139.6 million, compared with €169.5 million in 2021/22. On a comparable basis and excluding non-recurring items, operating income was up 3.6%.

 

The Group's net cost of debt rose by €8.8 million to €25.0 million. This increase reflects i) a 9.8 €M rise in the cost of gross debt excluding IFRS 16, mainly due to higher interest rates, ii) a 4.7 €M rise in the cost of IFRS 16 rental debt due to the acquisition and integration of MMV, the full-year effect of the Cosmos hotel and the opening of Ecolodgee at Futuroscope, iii) these increases being partially offset by €5.8 million in interest earned on cash investments (€0 million in 2021/22).

 

Income tax expense amounted to €24.9 million, down €13.3 million due to a 25% reduction in the tax base and a 3.2-point decrease in the average tax rate.

 

Net attributable income, Group share thus came to €90.4 million. Excluding non-recurring items, net income, Group share rose by 4.1% to €87.0 million.

 

Working capital requirements are up by €13.5 million compared with September 30, 2022.

 

Net industrial investments[1] amounted to €235.4 million, up 33% on 2021/22. It is, however, below the Group's initial guidance of around €250 million. This is because several expenses and savings were deferred compared with the budget. Capital expenditure for the year breaks down essentially as follows:

 

• €92.0 million in Ski Areas, mainly new lifts at Serre-Chevalier, La Plagne, Les Arcs, and Grand Massif,
• €10.7 million in Distribution & Hospitality, notably for the renovation of two hotel-clubs in Les Arcs and Alpe d'Huez,
• €118.6 million in Leisure Parks, mainly invested in new zones such as the Festival Toutatis Zone at Parc Astérix and a new family zone at Walibi Holland, as well as in new attractions notably at Walibi Belgium and Bellewaerde.

 

[1] See glossary

 

After an increase of €21.6 million in taxes paid in 2022/23, reflecting the return to normal business levels in 2021/22, free cash flow from operations[1]  reached €24.3 million, in line with the target of positive free cash flow from operations. As a reminder, against a backdrop of business recovery following the health crisis, free cash flow from operations for the previous year was €181.6 million and is not comparable because it had benefited from the positive effect of rebuilding working capital post Covid.

 

The Group’s net debt stood at €900 million on September 30, 2023, broken down into net financial debt excluding IFRS 16 of €563 million and IFRS 16 debt of €338 million. This compares with €541 million on September 30, 2022. This increase of €360 million mainly reflects the impact of the MMV acquisition, which represents a total of €264 million, between the recognition of MMV's net debt (€168 million at year-end 2022/23, including €102 million of IFRS 16 debt) and the additional net debt linked to the financing of the acquisition of MMV shares in the amount of €96 million (including the valuation of the put option on the 15% of MMV's share capital not acquired by the Group). The increase in the Group's net debt also reflects the higher level of investments made during the year, as well as the dividends paid by the Group (€47 million).

 

The net debt/EBITDA (excluding IFRS 16) leverage ratio stood at 2.0x on September 30, 2023, well below the Group's initial target of between 2.5x and 3.0x.

 

Dividend 

 

At the Annual General Meeting on March 14, 2024, the Group will recommend a dividend payout of €0.91 per share for FY 2022/23, up 10% versus the dividend paid out in respect of FY 2021/22. This represents a return of 7% per share, based on the closing price for financial 2023 (€13.0).

 

This proposed amount corresponds to a payout ratio of 53% of net income, Group share, excluding non-recurring items, in line with the Group's stated target of 50%. This dividend policy is compatible with the pursuit of a strategy of profitable growth and sustained investment, illustrating the Group's confidence in its ability to maintain a controlled level of financial leverage.

[1] See glossary

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ENVIRONMENTAL POLICY AND PERFORMANCE

 

Reductions in CO₂ emissions

 

CO₂ emissions (scope 1 and 2) for the Group amounted to 18,041 tons in financial year 2022/2023, a reduction of 34% compared with the previous year, despite the integration of MMV. The Group's target of a 25% reduction for the year has therefore been comfortably exceeded. By ending the year with a 39% reduction in its CO₂ emissions compared with the 2018/19 reference year (43.5% reduction to 16.701 teq CO₂ excluding MMV), Compagnie des Alpes is well ahead of the trajectory announced in October 2022 aimed at achieving Net Zero Carbon (scope 1 and 2) for each of its sites by 2030 at the latest.

For Ski Areas & Outdoor Activities, the 71% reduction in CO₂ emissions over the year compared with the previous year stems mainly from the widespread use of HVO100 biofuel made from waste and residues as a replacement for diesel for all the Group's snow groomers. By way of illustration, all the CO₂ emissions (scope 1 and 2) corresponding to a single skier day represent 320 grams of CO₂ in 2022/23, equivalent to the emissions required to produce 1 kilo of apples in France[1].

 

Regarding Distribution & Hospitality, most emissions come from MMV, which has been consolidated since the start of the 2022/23 financial year and is therefore not included in the figures for previous years. MMV has, however, been active in the thermal management of its buildings, installing intelligent heating control equipment in seven of its residences, reducing energy consumption in the buildings concerned by between 5% and 25%.

 

Lastly, for Leisure Parks, CO₂ emissions (scope 1 and 2) continued their steady reduction trajectory despite the rise in attendance and the extension of opening periods. They have fallen by 4% compared with 2021/22, bringing the reduction compared with the 2018/19 reference year to 18%. This further reduction is the result of numerous initiatives undertaken by each park, such as boiler changes and the electrification of service vehicles. By way of illustration, all the CO2 emissions (scope 1 and 2) corresponding to a single visitor day and overnight stay represent 1,130 grams of CO2 in 2022/23.

[1] Source Ademe – GES Food Report

 

10 Commitments and 5 Renunciations to implement our Raison d'Être

 

Compagnie des Alpes integrated its Raison d'Être into the Group's bylaws at its Annual General Meeting in March 2022. In its press release dated June 28, the Group announced 10 commitments and 5 renunciations, which can be consulted and downloaded from its website (https://engaments.compagniedesalpes.com ).

These commitments and renunciations chosen as the framework for the concrete implementation of the Raison d'Être are of the following three kinds:

• 5 Commitments to ecological transformation: reduction of CO₂ emissions with a target of carbon neutrality on scopes 1 and 2 by 2030, actions on scope 3 from 2024, preservation and regeneration of biodiversity, management of water, resources, and waste;
• 5 Commitments to support the social and societal transformation of the Group and its ecosystem: Employee Share Ownership Plan, well-being in the workplace, creation of a training academy for tomorrow's challenges, a foundation for innovation and support for the most disadvantaged, and the creation of a Laboratory of Ideas made up of independent researchers and personalities from civil society whose work is intended to propose and deepen avenues of reflection for the future;
• 5 Renunciations: no net extension of its ski areas, with the exception of selective and limited adaptations, no unreasonable measures when climate change makes part of its areas non-skiable, no production of snow at positive temperatures, no more use of fossil fuels for the snow groomers, buses, buildings and housing operated by Compagnie des Alpes, and no projects that do not involve a significant majority share of natural snow.

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Outlook for financial year 2023/24

 

This outlook is subject to major economic uncertainties.

 

• Ski Areas, outdoor activities, and Distribution & Hospitality (information concerning the beginning of the financial year)

Thanks to recent snowfall levels over the past few weeks, some resorts have been able to start the season ahead of schedule. Moreover, booking momentum is ahead of last year to date, including for MMV residences and club villages. The Group is therefore confident about the upcoming Christmas vacation period.

 

• Leisure Parks (information concerning the beginning of the financial year)

Leisure Parks business during the Halloween season, which had reached an all-time high last year, remained close to that peak despite adverse weather conditions (storms and heavy rains). Business during the upcoming Christmas season will be boosted this year by the opening of two additional sites: Walibi Belgium and Bellewaerde Park.

 

• Gross Operating Income

In light of the expected growth for its three business lines, its tight control over expenses, and the expected fall in energy costs, particularly for electricity (expected to be down by around 10%), for which the purchase price has been secured at 100% for calendar year 2024, the Group has set itself the target of achieving in 2023/24 EBITDA growth of 7% minimum compared with EBITDA excluding non-recurring items for FY 2022/23.

 

• Net Industrial Investments

The net industrial investment budget announced by the Group in December 2022, namely an average of €245 million per year for the 4 years from 2021/22 to 2024/25, has been revised slightly downwards. For the remaining two years, i.e., 2023/24 and 2024/25, the budget should be around €270 million per year, excluding change in scope.

 

• Free Cash Flow from Operations

Considering the level of net industrial investment, the Group forecasts an increase in positive free cash flow from operations for financial year 2023/24 compared with 2022/23.

 

• Financial leverage

The Group is maintaining its leverage target (net debt / EBITDA excluding IFRS 16) at a maximum level of 2.5x, excluding change in scope.

 

• Dividend

The Group also reiterates its dividend policy guidance of distributing approximately 50% of net income, Group share, excluding non-recurring items.

 

• CO₂ Emissions (scope 1 & 2)

As part of its Net Zero Carbon policy (scope 1 and 2) for 2030, Compagnie des Alpes has set itself a target for 2023/24 of reducing its CO₂ emissions by another 15points compared with financial year 2022/23, or around -54% compared with the 2018/19 reference year, on a comparable basis (excluding MMV).

 

This press release contains forward-looking statements concerning the outlook and growth strategies of Compagnie des Alpes and its subsidiaries (the “Group”). These elements include indications relating to the Group's intentions, its strategies, its growth outlook and trends concerning its operating results, its financial situation, and its cash position. Although these indications are based on data, assumptions, and estimates that the Group considers to be reasonable, they are subject to numerous risk factors and uncertainties such that actual results may differ from those anticipated or implied by these indications due to multiple factors, in particular those described in the documents registered with the Autorité des marchés financiers (AMF) available on the Compagnie des Alpes website (www.compagniedesalpes.com). The forward-looking information contained in this press release reflects the guidance given by the Group on the date of this document. Unless there is a legal obligation, the Group expressly declines any commitment to update these forward-looking elements in the light of new information or future developments.