A Year Of Growth For Club Med In 2012 Despite A Challenging Environment In Europe

Bookings in the Europe- Africa region were down 0.8%. In France, Club Med Business bookings that reached records last year were down, while the individuals were up +1.2% in business volume. This figure translate in number of customers to a -3.1%, while the market is down 10.3% at the end of October, according to France's tour operators organization CETO.

Bookings in the Americas and Asia were up by 7.2% and 5.0% respectively, lifted by the more favorable economic environment in these regions and, in particular, by the dynamism of Brazil, China and other fast-developing markets.

Bookings for the past four weeks were down 0.6% with a drop of 5.1% for the Europe- Africa region, partly offset by booking that are up in Americas and Asia.

 --  The uncertain environment calls for prudence in 2013

In light of the sluggish economic environment in Europe, particularly France, the following measures have been taken:

• Winter 2013 capacity has been adjusted by 3.7% compared with winter 2012. In Europe- Africa, closure of Meribel Aspen Park and Coral Beach along with temporary shutdowns of certain villages in North Africa have led to a 5.4% capacity reduction. For the summer 2013 season, Europe- Africa capacity has been shrunk by 6.2% in response to the uncertain economic environment.
• Capital spending will be kept at the fiscal 2012 level of around €55 million and will concern both ongoing projects to move the village offer upscale and necessary maintenance work. In addition, a further €10 million or so may be spent on acquiring equity interests to speed up the pace of growth in certain high potential markets such as Brazil and Russia.
• Costs reported under "Operating loss from the management of assets" should be considerably lower than in fiscal 2012 now that the program to move the village offer upscale is nearing completion.

Based on the above outlook, the Group should report positive free cash flow in fiscal 2013.

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