Specialist
Former SVP at Groupe Vacalians
Agenda
- Sales growth outlook in 2021 vs 2019, highlighting growth drivers, revenue seasonality and expansion opportunities
- Strengths of European Camping Group's shared fleet management model and expected shifts into site ownership
- EBITDA and CAPEX outlook in H2 2021
Questions
1.
Can you outline the coronavirus legislation in France? What is allowed and how does that impact ECG’s [European Camping Group’s] parks?
2.
Does 2020 tell us anything about what capacity constraints could be in place when sites reopen?
3.
You mentioned July and August 2021 being crucial. What is the rough revenue seasonality for those months?
4.
Could you outline ECG’s operating model? What are the core components of the revenue partner model?
5.
What are the benefits of ECG’s partnership model vs the owned-site model?
6.
You suggested that there could be multiple operators on one campsite. Does that provide a natural benefit of being able to pick up customers who are marketed to a shared campsite?
7.
Is ECG at risk of losing its presence in popular camping sites as competitors try to increase their plots?
8.
How does the tendering process work for plots on shared campsites? How would a competitor take one of ECG’s plots or vice versa?
9.
You said that ECG may be underpaying due to its legacy contracts. What is your pricing outlook for ECG in this partnership model?
10.
How easy is it to pass on the 3-6% annual rent increase to consumers through increased pricing in the southern European market?
11.
How much pent-up demand is there for campsites in France, considering domestic demand is roughly one fifth of customers vs four-fifths for international demand?
12.
You mentioned that revenues accrued in July and August contribute the bulk of revenue for campsite operators, but when do customers typically pay the deposit and the remaining balance?
13.
What is the typical payment schedule between campsite operators and parks?
14.
What are the opportunities for campsite operators to delay payment to the parks if there is a shift in payments from customers?
15.
ECG quotes a 78% international customer share on its website, which is a huge risk due to coronavirus. To what extent do you think the domestic growth opportunity would offset declines in international customers?
16.
Why would a consumer choose to book an ECG cabin vs one of its key competitors or an independent campsite’s cabin, given that multiple firms compete on the same campsite?
17.
How does ECG’s price position compare to its key competitors in southern Europe?
18.
What is the rough percentage split of plots that ECG occupies vs independents vs other major competitors on the largest parks in southern Europe?
19.
Who would you highlight as ECG’s major competitors?
20.
Independent parks have obviously suffered more due to coronavirus than asset-light operators. How do you think this could impact how many plots become available for a brand such as ECG post-pandemic? Could more come to market to recoup 2020 revenue declines?
21.
What might be the benefits of ECG’s size post-coronavirus? Is there likely to be a shake-out of smaller competitors and a more consolidated ECG positioning?
22.
What changes, if any, do you expect to ECG’s partnership vs owned-site model post-coronavirus? Could ECG push more into the owned-site model?
23.
Could some sites come to market at more favourable unit economics because independent operators have struggled due to coronavirus and might not have the financial capability to support the number of parks they have, meaning more parks for ECG to pick up?
24.
How important is it that ECG reaches a break-even occupation level in the partnership model?
25.
Could you outline ECG’s typical CAPEX model? You mentioned some of the operating costs.
26.
Could you roughly estimate how much a cabin costs?
27.
How would you split ECG across the spectrum of basic to large cabins?
28.
What would be the typical payback period per cabin, based on the initial outlay of EUR 14,000?
29.
What is the payback on refurbishments? Is it similar to cabins, so 3-4 years?
30.
How well-invested would you say ECG’s fleet is?
31.
You mentioned ECG’s recent aggressive acquisition spree. What are the opportunities for ECG to acquire more brands post-coronavirus, considering that you said the market is already fairly consolidated?
32.
Are the 4-5-star campsites that ECG is acquiring through the partnership model or the owned-site model?
33.
How big is ECG’s growth opportunity for five-star owned camps?
34.
How might the growth in 4-5-star accommodation impact ECG’s margins and EBITDA?
35.
What would be the opportunity to spin off certain ECG assets in the event of any potential sale, rather than selling the entire company?
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