Euro Disney S.C.A. Annual Review 2013

2013·50.1 MB·English

by  Euro Disney S.C.A.

2013 ANNUAL REVIEW
Extending the 20th Anniversary Experience
EURO DISNEY S.C.A.
4
average spending per theme park guest
Investing in magical resort experiences
remains at the heart of our strategy.

14.9M
€
22M
theme park visits
reduction in net loss
2
+
average spending per hotel room
SUMMARY
02 Message from Philippe Gas, CEO
04 2013 Financial Results
08 Shares & Shareholders
10 Corporate Governance
DREAM OF A TRULY
MAGICAL DESTINATION
16 The Guest Experience
PICTURE A PLACE WHERE PEOPLE
MAKE A DIFFERENCE
24 The Cast Experience
28 Strategic Alliances
30 Real Estate Development
& Villages Nature
IMAGINE A COMPANY TURNED
TOWARDS ITS COMMUNITY
36 Community Outreach
38 Environment
2013 ANNUAL REVIEW • EURO DISNEY S.C.A.
DEAR SHAREHOLDER, Change has also taken place in the European
economy over the years, and since 2008
our industry has faced challenging times.
It has now been more than 20 years since
Disneyland Paris has nonetheless remained
Disneyland Paris and its partners created
focused on its long-term growth strategy
Europe’s number one vacation destination
by investing in high-quality guest experiences.
from a swathe of beet fields. In that time,
Disneyland Paris has been visited more than
275 million times and become a catalyst
PREPARING FOR THE FUTURE
for magical memories.
Millions of people from across Europe We continue to heavily invest in asset renovation .
now have emotional connections with Our multi-year hotel refurbishment program
our destination – quite an achievement when is on-going, covering all 5,800 rooms. We also
you consider how diverse we Europeans are. continue to offer new, exciting and innovative
Today, that legacy of sharing magical experiences in our theme parks. This includes
experiences at Disneyland® Paris is being our brand new attraction based on the hit
handed down from generation to generation. Disney•Pixar movie Ratatouille, scheduled
to open in summer 2014.
DRIVING SOCIO-ECONOMIC It is equally important that we strengthen
Cast Members' talents because these are at the
DEVELOPMENT
heart of each magical moment created by the
group. We continue to invest more than three
Beyond creating a center of tourism times the regulatory requirement in training,
excellence and expertise, we have also while striving to improve our employees' work
established an economic driving force environment and sense of fulfillment.
for our region.
Through all of these investments, we aim
During the fiscal year, for example, our group to strengthen our resort’s reputation for
employed over 14,000 Cast Members in over excellence while successfully growing our
500 different jobs. Furthermore, 90% of levels of guest spending. We are positioning
those employees held permanent contracts ourselves to leverage the benefits of the
(a record for the French tourism and leisure economic recovery.
industry). All of this makes our group the
largest single-site employer in the country,
and the source of 55,000 jobs in total. AIMING FOR EXCELLENCE
Our real estate activities have contributed
Our team members are immensely proud
towards establishing a thriving town center
to say that Disneyland Paris is Europe’s number
just a stone’s throw from the resort.
one tourist destination. Nonetheless, this
Val d’Europe now has considerable assets
simple fact will never be enough for us because
of its own, including one of France’s top
we are wholeheartedly dedicated to improving
shopping areas and an environment at
every day in every way.
harmony with our tourism activities. Above all,
Val d’Europe offers a strong balance between
I would again like to thank everyone for their
the number of residents (30,000) and the
help over the years – and particularly our
volume of jobs (28,000).
Cast Members who show on a daily basis
that one of this group’s most valuable assets
is its team.
“ We are positioning ourselves We continue to

Philippe Gas
to leverage the benefits of the heavily invest in Chief Executive Officer
Euro Disney S.A.S.
economic recovery. ”
asset renovation.
2013 ANNUAL REVIEW • EURO DISNEY S.C.A. • 03
> 2013 Financial Results
A CHALLENGING CONTEXT FOR THE ENTIRE
EUROPEAN TOURISM AND LEISURE INDUSTRY
2013 was a difficult year for Europe’s tourism and leisure industry and this was reflected in the theme park
attendance and hotel occupancy at Disneyland® Paris. Despite the economic context, however, continued
enhancements to resort offerings enabled the group to drive guest satisfaction and increase guest spending
in order to help mitigate the impact of reduced theme park attendance and hotel occupancy. The group
showed resilience within that context, with total revenues declining only 1% to €1.3 billion in 2013.
RESORT REVENUES GEOGRAPHICAL BREAKDOWN PORTFOLIO OF
With 14.9 million visits made to the resort, Disneyland
Paris remained Europe’s number one tourist destination
OF THEME PARK VISITS EUROPEAN MARKETS
in 2013. The 20th Anniversary celebrations helped Theme park revenues decreased by only
grow attendance in the first semester (3% increase), 2% to €737.6 million (€750.5 million in 2012),
and the festivities were extended six months. Overall, as a result of a 7% attendance decrease from The group’s marketing and sales strategy
theme park attendance decreased from the previous the previous year. This was partially offset operates across a portfolio of seven key
France 51%
year which saw a record-breaking 16 million visits. by a 4% increase in average spending per European markets. While intentions to visit
The year was particularly challenging since five guest to €48.14. UK 14% remained high in 2013, the economic context
of the group’s seven key markets were in technical Spain 8% saw five of the key markets in recession at
recessions. The French, Spanish and Italian The French market again generated the largest some point: Belgium, France, the Netherlands,
Belgium 6%
markets accounted for more than 90% number of visits (51% of total attendance), Italy and Spain. Growth was registered in the
The Netherlands 6%
of the decrease in theme park attendance. despite the worsening economic context that two remaining markets, Germany and the UK,
resulted in an 8% attendance decrease in this Italy 3% and this can be partially attributed both to the
market (mainly during the second semester). Germany 3% economic context and targeted marketing
However, the drop in revenues from this market and sales operations. This highlights the group's
Rest of the world 9%
was partially offset by higher attendance from focus on being well positioned to benefit from
other markets (primarily the UK) combined its current investments when the economy does
with the increase in average spending per guest. improve. The group also continues to increase
growth in its smaller markets, particularly
Hotel and Disney Village® revenues decreased Eastern Europe and Russia.
2% to €510.2 million (from €518.6 million in the prior
€
year) due to a 4.7 percentage point decrease in 22
hotel occupancy to 79.3% that was partly offset
by higher Disney Village® revenues and a 2%
MILLION REDUCTION IN
increase in average spending per room. The
RECORD GUEST SPENDING
decrease in hotel occupancy resulted from 105,000
NET LOSS OVER FISCAL YEAR 2012.
fewer room nights being sold compared to the prior
year due to fewer guests visiting from France, Italy, Since 2008, the group has maintained its focus
the Netherlands and Spain, and this was partially This reduction in net loss reflects the positive impact on investing to improve resort quality. Between
offset by more guests visiting from the United of the 2012 debt refinancing. 2009 and 2013, around €510 million have been
Scan for more Kingdom. invested in the maintenance and development
information. of the destination. These investments have helped
to improve guests' perception of value for money
as well as their satisfaction. These improvements
KEY OPERATING STATISTICS 2013 2012 2011
in quality have also allowed the group to increase
admission and room prices, resulting in record
THEME PARK ATTENDANCE (in millions) 14.9 16.0 15.6 +4 spending levels of €48.14 in the theme parks
(average per guest) and €235.01 in the Disney
AVERAGE SPENDING PER GUEST (in €) 48.14 46.44 46.16 hotels (average per room). At Disney’s Sequoia
AVERAGE GUEST Lodge®, for example, satisfaction levels for room
quality increased by 11 points compared to the
SPENDING IN THE THEME PARKS. levels measured before the refurbishment.
HOTEL OCCUPANCY RATE 79.3% 84.0% 87.1% In Disneyland® Park, Disney Dreams®!, which
+2% in the hotels (average per room). was introduced in April 2012, drove significant
AVERAGE SPENDING PER ROOM (in €) 235.01 231.33 218.80 guest satisfaction levels (92%) during this fiscal
year also.
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> 2013 Financial Results
KEY FINANCIAL HIGHLIGHTS
FISCAL YEAR
(€ in millions)
The group’s continued strategy
2013 2012 2011
Revenues 1,309.4 1,324.3 1,294.2
of investing in the quality of the
Costs and Expenses (1,336.9) (1,320.9) (1,282.7)
Operating Margin (27.5) 3.4 11.5
destination’s offering and guest
Plus: depreciation and amortization 171.8 173.8 173.0
EBITDA * 144.3 177.2 184.5
experiences resulted in record levels
EBITDA as a percentage of revenues 11.0% 13.4% 14.3%
Net loss (78.2) (100.2) (63.9)
of guest spending.

Attributable to owners of the parent (64.4) (85.6) (55.6)
Attributable to non-controlling interests (13.8) (14.6) (8.3)
Cash flow generated by operating activities 95.0 144.0 168.7
The increase in average spending per room Cash flow used in investing activities (126.1) (153.3) (79.6)
CASH FLOW
resulted from higher daily room rates. The increase
Free cash flow (31.1) (9.3) 89.1
in Disney Village® revenues reflected higher
spending on merchandise following the opening Cash generated by operating activities for the fiscal Cash and cash equivalents, end of period 78.0 114.3 366.1
of the World of Disney boutique in July 2012. year totaled €95 million compared to €144 million
in the prior year. This decrease resulted from higher
working capital requirements and a decline in the * EBITDA corresponds to earnings before interest, taxes, depreciation and amortization. Free cash flow is cash generated by operating activities less cash used in investing activities.
REAL ESTATE REVENUES These are not considered as measures of financial performance defined under IFRS, and they should not be viewed as a substitute for operating margin, net profit / (loss) or operating
operating margin. cash flows in evaluating the group’s financial results. However, management believes that EBITDA and free cash flow are useful tools for evaluating the group’s performance.
Revenues from the group’s real estate activities Cash used in investment activities for the fiscal year
increased by €11.1 million to €20.4 million, due to totaled €126.1 million, compared to €153.3 million
a higher number of transactions closed (six as in the prior year. That level of investment reflects € €
opposed to three the previous year). The nature the group’s on-going strategy of improving the 20.4 + 11.1
of the group’s real estate development activity guest experience. This was seen, for example, in
MILLION REDUCTION MILLION IN REAL
means that the number and size of transactions the investments made during fiscal year 2012 in the
will vary from one year to the next. World of Disney boutique and the Disney Dreams®!
IN INTEREST CHARGES IN 2013. ESTATE REVENUES IN 2013.
night-time show. While a decrease in this area can
be seen, investment levels remain both significant
CONTROLLING COSTS
and representative of the group’s efforts to improve The 2012 financial restructuring enabled the group The group’s real estate revenues vary from year to year
the guest experience. to significantly reduce its interest charges during based on the number of transactions closed (6 in 2013 as
The group remained focused on limiting cost the fiscal year. opposed to 3 in 2012) and the size of those transactions.
growth. Operating costs grew by 1.2% (in line with
NET LOSS
inflation). Labor rate inflation, real estate cost of
sales related to increased activity, and expenses
related to new guest offerings were partially offset The group’s net loss amounted to €78.2 million
IMPACT OF THE 2012 REFINANCING
by labor optimization initiatives and a €9.3 million and this compares to a net loss of €100.2 million
tax credit (CICE) introduced by the French state for the prior year. The €22 million reduction in net
which offset labor expenses. loss reflects the positive impact of the 2012 debt The impact of the group’s 2012 refinancing agreement can already be seen through the financial results for 2013. For this
refinancing. This loss should be considered in light year, interest charges were reduced by €20.4 million, thereby helping reduce the net loss. As expected, the refinancing
The group’s marketing and sales costs decreased of the group’s long-term growth strategy which agreement has been significant for the group in several important ways. These include helping reduce the cost of its debt
3%, reflecting specific efforts made to reduce involves investing in the quality of Disneyland® and providing greater flexibility for its operations and future investments necessary to continue improving quality at the
expenses and media costs. Marketing and sales Paris in order to increase guests’ satisfaction resort and strengthening the appeal of Disneyland® Paris. The agreement also provides the group with a new repayment
costs remained stable in proportion to revenues. and drive improved guest spending. schedule that is more favorable to its future activities.
Net financial charges were reduced by €53 million
in 2013. This reflects the reduction in average
interest rates made possible through the 2012 debt
FOUNDATIONS FOR A PROMISING FUTURE
refinancing (see right) as well as other non-recurring
financial charges.
Within the current economic context, the group remains cautious yet confident that it has laid the foundations necessary
for a promising future. It will continue investing in top-quality resort experiences to drive guests’ satisfaction and spending
growth. 2014 will see the opening of a unique new Ratatouille-themed attraction for families at Walt Disney Studios® Park
(see page 19). Renovation of the group’s hotel infrastructure will also continue, with 1,100 rooms at Disney’s Newport Bay Clu®b
set for renovation from 2014. Marketing and sales initiatives will continue across all markets, and particularly in growth areas
such as the United Kingdom and Germany. Cast Member learning and development will also remain a focus for targeted
investments designed to ensure that Disneyland Paris remains Europe’s leading tourist destination.
2013 ANNUAL REVIEW • EURO DISNEY S.C.A. • 07
> Shares & Shareholders
EURO DISNEY S.C.A. SHARES AND THE SHAREHOLDERS CLUB
SHARE PRICE EVOLUTION
The group’s Investor Relations team represents the
Source: NYSE Euronext Paris
primary contact for the financial community. It works
directly with analysts, individual and institutional
CAC40 All Tradable Rebased
investors and is committed to providing them
insightful financial information in a proactive, EDL Share Price
timely and professional manner. Volume
7,00
6,00
CORPORATE WEBSITE
5,00
The financial community and individual shareholders 4,00
can find a wide array of information on the group
by visiting the website of Euro Disney S.C.A. 3,00
(http://corporate.disneylandparis.com). They will find
2,00
all the financial information published by the group,
as well as the market price of a Euro Disney S.C.A. 1,00

share, information on corporate governance and more.
0,00
Athse p Sahrat roefh tohlde eInrsv eCsltuobr iRs etlhaet iopnrism daeryp acrotmnteanctt, w ith 10/12 11/12 12/12 01/13 02/13 03/13 04/13 05/13 06/13 07/13 08/13 09/13
the company’s individual shareholders. It is available
to provide information on the group’s financial
performance, strategies, share price evolution and SHAREHOLDER STRUCTURE
market-related information. In 2013 the publications
Les Echos and Investir awarded Euro Disney S.C.A.
the shareholder relations award for the Small Caps
category in recognition for its policy on shareholder On September 30, 2013
communication.
39.8% The Walt Disney Company*
SHAREHOLDERS CLUB
AVAILABLE ONLINE 10% HRH Prince Alwaleed**
Shareholders Club members also have access
50.2% Other shareholders
to an exclusive section where they can check out
their latest club newsletter, reserve a place at future
events, update personal details and renew their
club membership.
* Via a wholly-owned subsidiary, EDL Holding Company LLC
** Via Kingdom 5-KR-134 Ltd, a company whose share capital is held by trusts for the benefit
of HRH Prince Alwaleed and his family.
CONTACTS NYSE EURONEXT PARIS
“ Les Echos and Investir
Investor Relations 38,976,490 shares Mnemonic
Tel: [phone] - Fax: [phone] (Nominal value: €1 per share) EDL
awarded Euro Disney
Shareholder Relations Eurolist Segment B ISIN Code
S.C.A. the shareholder From 9:30 a.m. to 5:30 p.m. (local time), (Mid Caps) FR0010540740
from Monday to Friday.
relations award for the Tel: [phone]*
Email: [email protected] Market Indexes
Fax: [phone]
Small Caps category... ”
CAC Mid & Small, CAC Small, SBF 250
CAC All-Tradable, CAC All Shares, Next 150
* Free number from a land line and national operators in Belgium, France, CAC Consumer Services, Gaïa Index
Germany, Italy, the Netherlands, Spain and the United Kingdom. CAC Travel & Leisure
From other countries call: [phone] (local rates apply)
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> Corporate Governance
CORPORATE ORGANIZATION OF THE EURO DISNEY GROUP
THE MANAGEMENT COMPANY* THE MANAGEMENT TEAM ON SEPTEMBER 30, 2013
Euro Disney S.C.A. (the holding company of the
Euro Disney Group), Euro Disney Associés S.C.A.
and EDL Hôtels S.C.A. (both of which are the The role of the *Gérant of a société en commandite
operating companies of Disneyland® Paris) par action, is to manage the group in the group’s
Philippe Gas Francis Borezée
are all French sociétés en commandite par actions. best interests.
CEO, Euro Disney S.A.S. Vice President, Resort & Real Estate Development
Under French law, in the structure of a société
en commandite par actions, the Supervisory
THE GENERAL PARTNERS
Board and the Gérant both have distinct roles.
Claire Bilby Gilles Dobelle
The two other components of the legal structure
Senior Vice President, Sales & Marketing Managing Vice President & General Counsel
of a société en commandite par actions are The general partners have unlimited liability
the general partners and the limited partners. for all the debts and liabilities.
Joe Schott Daniel Dreux
THE SUPERVISORY BOARD THE LIMITED PARTNERS Senior Vice President & Chief Operating Officer Vice President, Human Resources
The role of the Supervisory Board is to monitor
The limited partners are the shareholders.
the general affairs and to ensure the management Mark Stead Julien Kauffmann
The shareholders are convened to the general
of the group. It acts in the best interests of the group meetings of shareholders, held at least annually, Chief Financial Officer Vice President, Revenue Management & Analytics
and its shareholders, while monitoring the transparency
and they deliberate in accordance with the
and quality of the information communicated. The Euro
prevailing legal and regulatory requirements.
Disney S.C.A. Supervisory Board Members’ Charter François Banon
sets out the fundamental obligations to which Vice President, Public Affairs Communication Europe
the members of the Board must abide.
More information:

http://corporate.disneylandparis.com
Two committees have been created within
THE SUPERVISORY BOARD ON SEPTEMBER 30, 2013
the Supervisory Board of Euro Disney S.C.A.:
a financial accounts committee (Audit Committee)
that was created in 1997, and a Nominations
Committee that was created in 2002.
Virginie Calmels
Philippe Geslin
Supervisory Board Chairman.
Audit Committee Chairman.
Vice President of the Centre d’Etude
Holds various corporate positions and board memberships
et de Prospective Stratégique
EDL Sole General Partner in financial institutions and major companies.
Public [Center for Long Term Strategic Studies].
Participations
Shareholders*
S.A.S.
60.2%
100%
Euro Disney Valérie Bernis Philippe Labro
EDL 39.8% Euro Disney S.C.A. 100% Commandité Audit Committee Member. Nomination Committee Member.
99.9% Holding Company S.A.S.
Executive Vice President of GDF Suez. Project Director, Design & Operations of Labrocom SARL,
LLC 82%
and Vice President of Matin Plus.
Euro Disney Associés S.C.A.
owns and operates
Disneyland Park®
Walt Disney Studios Park® Gérard Bouché
TWDC 100% ES.uAr.oS .Disney DDiissnneeyy’lsa nDda vHyo Cterlo®ckett Ranch Owner & Operator of E. Leclerc Shopping James A. Rasulo
Golf Disneyland® Center of Coulommiers and of Boutigny Senior Executive Vice President – Chief Financial Officer
& Chairman of the Investment Committee
99.9% golf course (Seine-et-Marne, France).
of The Walt Disney Company.
Chairman & CEO of Bouché Distribution S.A.S.
EDL Hôtels S.C.A.
Centre de Congrès owns and operates
100% Newport S.N.C.** DDiissnneeyy’’ss HSeoqteulo Niae Lwo Ydgorek®® KEY:
Disney’s Newport Bay Club®
Disney’s Hotel Cheyenne® Michel Corbière Anthony Martin Robinson
Disney’s Hotel Santa Fé® Ownership Shareholders
and Disney Village® KEY: Chairman & CEO of the Forest Hill Group Audit Committee Member.
Euro Disney General Partners and the Aquaboulevard de Paris company. Chairman of Center Parcs (UK) Group Ltd.
100% Investments 9% OwGneérsrhaipn Sthareholders
S.A.S. General Partner
Gérant
* Including Kingdom 5-KR-134 Ltd
(Prince Alwaleed), 10%
Axel Duroux
* Including Kingdom 5-KR-134 Ltd
EDL 9% (Pr*in* cFe iAnlawnacleiendg), C10o.0m%pany of the Newport CEO of AXMA SA. Thomas O. Staggs
100% Corporation ** Fin anBcianyg CColmubpa Cnyo onfv tehne tNioewnp Coretnter
S.A.S. Bay Club Convention Center Director of the Institut National de l’Audiovisuel Nominations Committee Member.
[French national audiovisual institute]. Chairman of Walt Disney Parks and Resorts Worldwide.
2013 ANNUAL REVIEW • EURO DISNEY S.C.A. • 11
Where innovation drives imagination
and Disney Dreams®! come true.
2013 ANNUAL REVIEW • EURO DISNEY S.C.A. • 13
63
of Disneyland® Paris guests
were “extremely”
and “very” satisfied
with their visits
89
of guests would
"definitely" and "probably"
come back
2
DREAM OF A TRULY
4
MAGICAL DESTINATION. ..
average spending
per hotel room
average spending
per theme park guest
2013 ANNUAL REVIEW • EURO DISNEY S.C.A. • 15