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Number of Pages:164

Date Created:May 12, 2004

Date Uploaded to the Library:February 20, 2014

Tags:vacances, eacute, parcs, Continental, Maeva, Netherlands, French, thousand, Europe, FRANCE, pierre, DOMA, DIRECTORS, Group, September, meeting, shares, ATF, board, EPA, IRS, ICE, CIA, financial


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Contents
 

Understanding  Group profile and key figures
 
 The European leader tourist residences

the Group
 

 European footprint
 
 Background highlights
 
 Pierre Vacances the stock market
 
Understanding  The Group brands Pierre Vacances, Maeva, Rsidences MGM, Center Parcs
 
 The marketing policy

the Challenges
 

 Property development
 
 Sustainable devopment
 
Financial 

 Group management report
 
Report 

 Consolidated financial statements
 
 Parent company financial statements 107
 
 Legal and administrative information 123
 
Chairmans message 2002/2003,the Pierre Vacances Group pursued its growth and development, consolidating its position major player European tourism. 
The Groups results improved again this year. Turnover climbed 16.4% like-for-like basis compared with 2001/2002, reflecting sustained growth all the Group's activities, notably property development. The Groups tourism business held well and even strengthened its presence Europe remarkable performance given the challenges faced the industry whole. 
The net income before extraordinary items increased 25.7%.The efforts all Group teams paid off with the continued streamlining tourism activities producing operational and functional synergies which markedly reduced certain costs. 
The Pierre Vacances model demonstrated its capacity weather challenges and confirmed its ideal positioning meet current and future trends the tourism industry. 
Continuing its policy expanding via acquisitions,in 2002/2003 the Pierre Vacances Group notably acquired 100% the capital Center Parcs Continental Europe. This strategic acquisition affords the Group newfound momentum and entirely new dimension, reinforcing its position European leader tourist residences.The deal incurred operational risk and had positive financial impact. 
The Group aims continue improve its performance and results 2003/2004.In addition the expansion the property development business,with the scheduled delivery new apartments and holiday homes and the purchase existing residences for renovation and resale individual investors, three priorities have been set for the current financial year:
 improve the operating performances optimising the management tourism activities while continuing cut costs;
 take full advantage the opportunities arising from the integration Center Parcs developing synergies within the Group and opening new Center Parcs villages; step organic growth notably France. 
Grard BREMOND years after its inception, the Pierre Vacances Group, the European leader tourist residences, more confident than ever its future, the success its business model and the pertinence its offer based the freedom choose ones holidays. 
UNDERSTANDING THE GROUP 

Freedom choose your holidays 
Set 1967 Grard Brmond, the Pierre Vacances Group the European leader tourist residences. serves 6.6 million European customers each year, 48% whom are French. The Groups success first and foremost based the originality its concept: holiday lets with  carte services (you only pay for what you use).The Group also responds its customers evolving economic and sociological needs such the emphasis the family, proximity holiday destinations and flexible short long stays. Lastly, the Group has complementary offer built its four brands (Pierre Vacances, Maeva, Rsidences MGM and Center Parcs): holidays should suited the holidaymaker, and each brand corresponds certain style taylor made holidays. 
Group profile and key figures 
CUSTOMERS COUNTRY ORIGIN 48% 
14% 24% 
BREAKDOWN SITES LOCATION (France) 
52%

10% 
31% 
TURNOVER (in euro millions) 
882

900
 
795
 

800
 700
 
605
 
600
 
515
 
500
 400
 300
 200
 100 1999/2000 2000/2001 2001/2002 2002/2003 Tourism Property development 
TURNOVER COUNTRY France 68% Netherlands 

France Germany Netherlands 
19% 

Belgium 
Belgium 

Germany Other 
Italy 

BREAKDOWN SITES COUNTRY 
77% 

France (including
Seaside 

French West Indies) 

11%
Mountains 
Netherlands
Cities 
Germany 
French West Indies 
Belgium
Countryside 
Other 

OPERATING MARGIN NET ATTRIBUTABLE INCOME (in euro millions) (in euro millions) 
47.3 
82.5
 
73.2 37.8
 
30.9 
51.3
 
25.3
 
32.0 1999/2000 2000/2001 2001/2002 2002/2003 1999/2000 2000/2001 2001/2002 2002/2003 
Tourism 
Property development 
UNDERSTANDING THE GROUP 

The European leader tourist residences 
The European tourism market essentially shared 
between tour 

operators and accommodation 
specialists. The tour operator market becoming
 
increasingly concentrated 

with the emergence giant players. The majority these giants are
 German, such TUI and Thomas Cook, which
 currently control almost half the European market.
 
However, 

the accommodation market more 
fragmented.The tourist residence activity driven
 the Pierre Vacances Group, which now the leader Europe with its four main brands:Pierre Vacances,
 
Maeva, Rsidences MGM 

and Center Parcs. 
Unique market positioning through four main brands 

Since its inception, the Pierre Vacances Group has based its strategy creating and developing the notion the freedom choose ones holidays via tourist residences and  carte services. addition this concept, its complementary offer based its four brands (Pierre Vacances, Maeva, Rsidences MGM and Center Parcs) and its ability respond evolving economic and sociological needs, have built the Groups success and strengthened its position European leader tourist residences. original product 
Although distinct from holiday lets and hotels, tourist residences combine the advantages both and provide unique guarantee comfort and quality environment. 
Pierre Vacances Group tourist residences mainly include two types product: 

 residences: they generally feature between and 500 apartments, and are located internationally-renowned resorts major cities. Residences are primarily chosen independent customers who wish discover particular region; 


 villages: they feature between 500 and 1,500 holiday apartments homes located 25-200 hectare greenfield sites.These pedestrian villages boast wide range activities and also offer  carte services and childrens activity clubs. 

The Pierre Vacances Group also runs number hotels offering traditional range full- half-board services.This marginal activity for the Group,only representing around 2,770 rooms. 
Short-distance tourism encouraged the Group's pan-European presence 
The diversity the Pierre Vacances Group's destinations and geographical locations are among the keys its success. For example, 95% Pierre Vacances' customers travel their holiday destination car. 
The aim have locations near major urban areas facilitate access for short stays well providing the option more traditional long-stay holidays.Today,48% the Pierre Vacances Group's apartments are located the seaside, 25% mountain resorts, 19% the countryside and city centres. diversified customer mix 
The Group served 6.6 million customers 2002/2003 
 most whom are families. However, with the recent diversification its product offering (e.g. short stay holidays, Sunday-to-Sunday holidays, pre-reservation ski lift passes), the Group has been able extend its customer base include senior citizens, young people, groups and couples without children, primarily Europe. 
CUSTOMERS COUNTRY ORIGIN 48%
 

France 

Netherlands14% 

Germany 

Belgium 

Other 

24% 
UNDERSTANDING THE GROUP original development strategy 
The Groups growth model based combination increasing the number sites and continually optimising the product mix, particularly with regard geographical diversity and type stay.The Group's tourist residence strategy immediately benefited from the unique combination Pierre Vacances' expertise property developer and tourist operator. This carefully-managed quantitative and qualitative growth underpinned two complementary areas development: 

 the design and sale off-plan tourist residences individual investors, prior their construction; 

 selective mergers and acquisitions strategy and policy systematically selling the properties acquired under these transactions institutional individual investors. 

Downstream, the Group's strategic model based diversified distribution policy. Holidays are sold via two complementary distribution channels: 


 direct marketing (68%) through the Group's own sales network France, the Netherlands, Germany, Belgium and Italy.This solution offers the advantage low costs; 


 indirect marketing (32%) through travel agencies and tour operators across France and Europe, which has helped enlarge the target customer base. 

With view improving profitability, the Group still aims develop its direct sales, which are not only more profitable but also significantly enhance its knowledge its customers and enable foster their loyalty through selective marketing initiatives. fragmented competitive environment 
France has 1,180 tourist residences, comprising 97,300 apartments and homes and 410,000 beds (source: SNRT).The Pierre Vacances Group currently manages nearly half these residences (33,000 accommodation units and 146,000 beds). 
Pierre Vacances' major competitors the tourist residence market mainland France include VVF (65,000 beds), Lagrange (29,000 beds), Odalys (20,000 beds), France Location (15,000 beds) and Citadines (10,872 beds) (source: SNRT). Northern Europe, the Center Parcs brand the market leader holiday residence villages terms accommodation capacity. Its main competitors are Landal Greenparks, Sunparks and Zilverberk. 
Nearly 80% the Group's turnover are generated tourism activities France, the Netherlands, Germany, Belgium and most recently Italy. European footprint 

 France Number apartments: 37,500 Number beds: 170,000 


 Germany Number apartments: 1,800 Number beds: 8,900 


 Belgium Number apartments: 1,300 Number beds: 6,400 


 Italy Number apartments: 2,300 Number beds: 10,000 


 Netherlands Number apartments: 5,100 Number beds: 26,100 

Pierre Vacances residences MGM residences Center Parcs residences Maeva residences 
UNDERSTANDING THE GROUP 
Launch the Pierre Vacances concept 

with the creation the Avoriaz ski resort Grard Brmond; 
Development the Pierre Vacances Group: Pierre Vacances expertise applied other Alpine resorts and seaside resorts; 
-Acquisitions companies, sites and major tourist property developments; 1979: launch theNouvelle Proprit scheme, under which private investors acquire the freehold apartment reduced cost, VAT can recovered and rent prepaid; 
Acquisition Orion Vacances (20 residences) The Groups initial public offering. 
Acquisition the Dutch group Gran Dorado, 

the leader the short-stay holiday village and home letting market the Netherlands; major acquisitions:
 March: 50% stake Center Parcs Continentale Europe (10 villages: the Netherlands, France, Belgium and Germany)
 July: letting management company, ski lift operator and property management company the Valmorel mountain resort;
 September: Maeva Group, the second largest tourist residence operator France (138 residences and hotels); 

 
2002 Acquisition Rsidences MGM, specialised luxury resorts (12 residences); 

 
2003 The Group becomes sole owner Center Parcs Continental Europe. 

NUMBER APARTMENTS 

Background and highlights 
Acquisition Rsidences MGM February 10th 2003, Maurice Giraud, owner the MGM Group, sold the management MGMs luxury resorts operated under the Rsidences MGM brand the Pierre Vacances and Lagrange Groups. 
All MGM residences are rated 4-star and offer spacious apartments and first-class facilities (indoor swimming pool, fitness centre, hammam and sauna). 
The acquisition Pierre Vacances Group covered ten mountain residences and one seaside residence (Deauville,France).The acquisition price for these residences, representing 939 apartments, amounted  million. 
Center Parcs Continental Europe: residential sites rated stars Netherlands, France, Germany and Belgium. 
Rsidences MGM: luxury residences 
Chamonix, Les Arcs,
 Les Carroz dArches,
 Les Houches, Les Menuires, Plagne, Mribel, Pralognan,
 Tignes,Val dIsre, Deauville.
 
Acquisition Center Parcs Continental Europe September 26th 2003, the Pierre Vacances Group
 purchased MidOceans stake Center Parcs Continental
 Europe, thereby becoming the sole shareholder.
 
This deal strengthened the Group's position European
 leader tourist residences. will have immediate
 positive impact the Groups results and produce new
 operational and functional synergies, notably increasing
 earnings and reducing costs.
 
The villages are open all year round, essentially for short
 stays (weekend and mid-week breaks) with  carte
 hotel services and leisure activities.The acquisition cost
 totalled  303 million.
 
Alongside this acquisition, Center Parcs Continental
 Europe sold eight Center Parcs sites which owned
 the freehold.
 
The sale seven villages Nomura International Plc,
 for  440 million, was finalised September 26th 2003.
 
The Pierre Vacances Group also signed agreement
 for the outright sale the Eemhof village the
 Netherlands consortium led the Dutch company,
 Zeeland Investments Beheer, for  million.
 The transaction was finalised the end October 2003. 
UNDERSTANDING THE GROUP 
Holding well year after the tragic events that took place the United States September 11th 2001, which have had lasting effect the global economy, and the tourism and leisure sector particular, the Pierre Vacances share price stood  October 1st 2002. The release the Group's full-year results mid-December and the announcement earnings growth target 12%, spite the overall caution that reigned 2002/2003, reassured the financial community and boosted the share price  towards the end the year. 
However, the first calendar quarter 2003, the Pierre Vacances share also succumbed the prevailing mistrust tourism shares, falling below its 2001 lows hit  March 7th.After remaining between  and  for some time, the share price began rise steadily following the release the Groups first-half results mid-June, showing 33% jump net income before extraordinary items against the first half 2001/2002. The share price was bolstered news the purchase MidOceans stake Center Parcs August and closed the year  65.30. 
This represents increase over over twelve months, even before the release full-year sales figures October 21st 2003 which posted like-for-like growth 1.9% turnover from accommodation, remarkable performance given the still fragile tourism sector. 
Consequently, challenging environment for the tourism industry fuelled the drop the number foreign tourists the domestic market, the Prestige oil spill and fires the Var region the south France, the Group once again held well.The quality its highly flexible product offer focused short-distance destinations, along with its unique positioning short breaks, shielded Pierre Vacances from the fluctuations suffered most the tourism industry. 

Pierre Vacances the stock market 
Shareholder Information
 
Events 
Throughout the 2002/2003 financial year, the Group participated number events (road shows Paris and throughout Europe, conferences, trade fairs) maintain regular contact with the financial community. The Group participated the Salon Actionaria investor fair held Paris November 22nd and 23rd 2002 and the Middlenext meeting held the Palais Brongniart Paris April 23rd and 24th 2003. For the first time, financial analysts who monitor the share were invited visit the Belle-Dune site (an eco-village located Picardy) June 28th 2003. 
Publications 
Shareholders can access Group information the Investor Relations section www.pierre-vacances.fr.A number documents can downloaded from this website (official documents, presentations, press releases,etc.).These documents and the Groups financial agenda are also available the Euronext website. The annual report and all Group presentation material are available following their publication request telephone online. 
Share information 
Pierre Vacances listed the Second March Euronext Paris. was first listed June 11th 1999  17.The Group included the NextPrime market segment. 
Quality financial information 
The financial community increasingly focusing the efforts made companies with respect financial transparency. response this, Pierre Vacances has opted included the NextPrime market segment.This segment defined Euronext and groups companies traditional economic sectors. was designed for companies seeking raise their profile vis--vis investors undertaking comply with financial communication guidelines that meet the highest international standards. 
Inclusion within the segment entirely voluntary and decided the Company. The commitments made the Group terms financial communication are outlined bilateral agreement with Euronext. Membership this segment represents mark quality. 
BREAKDOWN SHARE CAPITAL 
52% 
40% Brmond 

Bollor Group 

CDC 

Employees 

Float 

GEOGRAPHICAL BREAKDOWN SHARE OWNERSHIP 
82% 

France 

Netherlands 

USA 

Switzerland 

Others 

Sicovam code: 7304 Number outstanding shares: 8,566,190 Number voting rights: 8,616,548 

Contact
 Head Financial Communication Rue Cambrai 75019 Paris infofin@pierre-vacances.fr 

2003/2004 Calendar Turnover: 
January 23rd 2004 
General Meeting: 
March 11th 2004 Turnover: 
April 22nd 2004 
First-half results: 
June 10th 2004 Turnover: 
July 22nd 2004 Turnover: 
October 21st 2004 
Full-year results: 
December 9th 2004 

Following its numerous acquisitions recent years, including Maeva, Center Parcs and Rsidences MGM, the Pierre Vacances Group now boasts comprehensive diversified global offer complementary brands. 
The brand strategy breaks down follows: Pierre Vacances the Groups flagship brand, Maeva the mid-range brand, Rsidences MGM the prestigious upscale brand and Center Parcs the short-stay specialist.
 
Pierre Vacances. The catchphrase the Groups historical brand leisure and family. 

The offer includes quality holiday apartments and homes located prime sites. The accommodation located 
both residences and 

villages, with the latter offering wide range  carte sports and leisure activities 

for all ages. broad product range 
The Pierre Vacances brand boasts destinations mainland France (48 seaside resorts, mountain resorts and two city centres), two the French West Indies (Guadeloupe and Martinique) and five Italy. Pierre Vacances has developed two types product for two different types holiday: 

 Pierre Vacances residences, which account for 65% the offer including 12,548 apartments, all located internationally-renowned tourist resorts; 


 Pierre Vacances villages are full-scale tourist complexes: they offer numerous sporting and leisure facilities (swimming pools, golf, tennis, etc.) well services (restaurants, childrens activity 

clubs, etc.) and organised events (shows, sports tournaments, etc.) tailored family holidays.These villages account for 32% Pierre Vacances sites, representing 6,208 apartments. 
Pierre Vacances also offers hotel accommodation (596 rooms), generally located well-known resorts Pierre Vacances villages. 
All Pierre Vacances residences and villages include fully-equipped holiday apartments and homes (from one three rooms) and are based rating system Suns.The rating reflects the level comfort the accommodation, the quality the tourist site and its natural surroundings and the sites own facilities nearby amenities. 2003, the Pierre Vacances offer was expanded new destinations such Val dEurope (near Disneyland Resort Paris), Marciac (Gers), Branville (Calvados), Monflanquin (Lot-et-Garonne), Saint Lary Soulan (Hautes Pyrnes) and Ax-les-Thermes (Arige). 

The Group brands 
Tailored holidays packages response its customers current economic and sociological needs such the emphasis the family holiday flexibility, the Pierre Vacances brand has demonstrated its ability adapt these new trends providing tailored holiday offer: 
 carte services 
 addition the services included the basic price, Pierre Vacances offers  carte hotel services:Aliz, Aliz + and Kit Bb.These packages include beds made arrival, towels, mid-week housekeeping, the use cot and highchair, etc.; 

 certain villages and residences, two restaurant options are available: the 7 meals menu (choice lunch dinner) half-board catering (breakfast and lunch dinner).This service either directly managed subcontracted; 


 all Pierre Vacances seaside villages and residences feature swimming pools and variety other leisure facilities depending the site. Pierre Vacances villages also offer wide range sports and leisure activities such tennis workshops, horseriding, synchronised swimming, etc.; 


 childrens activity clubs: during the school holidays, clubs for children aged from three months years (Club Bb, Club Poolpy, Kids Club, Club Jeunes) run specialist, qualified group leaders, offer range activities adapted according age. 

Sunday-to-Sunday holidays 
Pierre Vacances offers its residents the option staying from Sunday Sunday some locations. 
Shorts stays 
According the 2003 Tourism indicator, 14% the French population take weekend trip short break least once month, and 42% 3-6 times per year. meet this growing demand, Pierre Vacances has offered short-stay options all its residences and villages for the past three years. Prices include the beds made arrival and towels services. terms upkeep, the property and facilities are specially designed minimise maintenance costs, even when occupancy rates are high.The Group has strict maintenance policy, including mid-lease refurbishment. This generates operational efficiencies and enhances customer loyalty. homogenous customer mix 
Pierre Vacances primary customers are families (two more children), young (the average age parents between and 45), city dwellers from primarily upper socio-economic groups, booking average nine-day holiday. Pierre Vacances served 1,586,300 customers this year.The diversity Pierre Vacances customers provides mix that well balanced terms geographical origin, destination (seaside mountain resorts) and season. 
The residences located city centres attract both short- and long-stay business customers, providing perfect complement the tourist customer base. 2003, the Pierre Vacances brand positioning was reflected change slogan aimed meeting its customers needs:Holidays that put your family first. 
TYPES RESIDENCES 
62% Suns Suns Suns 
CUSTOMERS COUNTRY ORIGIN 70% 

France Germany Netherlands Belgium Italy Other
 
Maeva. Maeva joined the Pierre Vacances Group September 2001, and based similar concept that 

the Pierre Vacances brand:holiday lets with  carte services. offer consisting primarily residences 
Maeva offers holidays mid-range residences and hotels for simple holidays for families between friends, with  carte service and leisure packages carefully determined prices. 
Since the summer 2003 season, Orion (acquired the Pierre Vacances Group 1999) has been integrated within the Maeva offer. Orion nonetheless remains present some seaside packages which are sold under the Maeva Orion brand. 
The Maeva brand has 122 destinations France (70 seaside resorts, mountain resorts and city centres). 
Maeva also offers range destinations overseas, mainly Spain, under privileged marketing agreements. 
Like Pierre Vacances, Maeva has developed two types accommodation with three comfort ratings, from seagulls: 


 tourist residences (87% the total, 10,977 apartments) are generally located the heart well-known seaside resorts and tourist areas, the mountains, cities (mainly the Paris region) and the countryside.These residences are located close sites offering sports and leisure activities. 


 hotels account for 13% Maeva holidays France (1,700 apartments) and are located either the heart well-known resorts (Val dIsre, Mribel, Les Arcs), within Maeva residential complex. carte services order satisfy the widest range customers, Maeva also offers variety  carte services and activities. 
Like Pierre Vacances, Maeva offers additional hotel services called Comfort 1 and Comfort 2 well the Kit Bb. Maeva also offers children's activity club options during school holidays for additional charge. 

The Group brands 
Most the residences the coast and the countryside feature swimming pools and other leisure facilities which vary according the site (tennis courts, games areas, etc.). Half the residences mountain resorts have swimming pools that can used the summer, and the majority City hotel residences also have swimming pools. 
Excluding city-based residences, hotels and over one-third Maeva resorts provide restaurant service with half-board  carte options. 
Lastly, response changing holiday market (35-hour week, more frequent and shorter holidays, etc.), Maeva offers weekend breaks and short stays. 
CUSTOMERS GEOGRAPHICAL ORIGIN 
Two main types customer 
The customer base (1,670,000 clients 2002/2003) essentially made families with children and senior citizens, Orions former customer base. 
They are primarily city-dwellers and from middle socioeconomic groups.The majority customers city-based residences are business travellers (for short stays) and students. 
The structure the product mix helps balance out the occupancy between seaside and mountain resorts and the winter and summer seasons.The average stay lasts 
8.7 days. Customers from outside France, mostly from northern Europe, account for 15% the total. 
TYPES RESIDENCES 2%4% 85%
 

48% 52% Seagulls 

Germany 

France2% Seagulls 

Belgium 

Netherlands 

Other
 

prestigious brand... 
Acquired February 2003, Rsidences MGM the Pierre Vacances Group's top-end brand which offers residences, mainly mountain resorts, 
Rsidences MGM, 
that combine luxury  

and well-being. exceptional environment 
Rsidences MGM offers luxury apartments and rooms, providing living spaces that harmoniously blend contemporary comfort and tasteful, old-fashioned interiors, with hotel services, relaxation and well-being centres (most residences and hotels feature swimming pools, fitness centres, sauna and hammam) natural, preserved environment. 
Another exceptional feature Rsidences MGM their architecture.They blend with their environment their architecture and the use local construction materials such sandstone, wood and terracotta tiles crafted using age-old techniques. 
Authenticity, luxury and well-being are the values Rsidences MGM. 
The residences and hotels are always organised small units and include average apartments ranging from two-room flats for three people five-room flats for people. 
There are eleven luxury residences and one hotel internationally-

The Group brands 
Upscale services included each residence, Rsidences MGM offers hotel services included the basic price: beds made arrival, towels, television, cleaning kit, etc. addition these services, 10-minute internet access card and fitness package sauna hammam sessions and group fitness classes) are also included equipped sites. 
For privileged customers 
Rsidences MGM targets families upper socioeconomic groups.The residents are primarily French (52%) and Dutch (17%). 
CUSTOMERS GEOGRAPHICAL ORIGIN 
52% 

France 

UK17% 

Germany 

Netherlands 

Belgium 

Other 15%
 
Center Parcs. September 26th 2003,the Pierre Vacances Group became sole 

owner Center Parcs Continental Europe and now manages residential leisure sites: the Netherlands, Germany, Belgium and France. 
Center Parcs, the European leader short stays 

The first Center Parcs site was opened the Netherlands 1968 and marked revolution the leisure sector.The original concept was then based new form relaxation: short stays totally natural environment, open year round and far from the stress the city. Built the most beautiful European regions, Center Parcs villages are located the heart forest areas preserved from all pollution (travel within the village foot bicycle only) but near major urban areas.The concept,which was far ahead its time, now more than ever line with the latest travel trends and corresponds the needs increasing number city dwellers. 
The main characteristics the Center Parcs offer: 


 spacious, comfortable cottages: capacity persons with range three categories service: comfort, luxury and VIP; 

 4,500 square meters aquatic park that unique Europe: each Center Parcs village offers Tropical Aquatic Paradise where the temperature 29C throughout the year. Under large, transparent dome feature water play area, slides and wild river.These amenities transform this natural setting rocks and tropical plants into exceptional leisure site; 

The Group brands 
 wide variety  carte sports and leisure activities: open-air activities (tennis, golf, horseriding, cycling, archery, etc.) indoor sports (squash, ping-pong, badminton, etc.). Center Parcs also offers integrated fitness centre, Aqua Sana (balneotherapy institute) and Sauna-Hammam area; 


 theme restaurants, bars and shops enrich the Center Parcs offer. 

Given the diversity facilities offer and with view preserving clear product segmentation, three sub-brands have been created: "Original" for the ten Center Parcs villages, "Seaspirit from Center Parcs" for the two seaside resorts and "Freelife from Center Parcs" for the three mountain villages (formerly Gran Dorado). 
Key locations ensure satisfactory occupancy rates, the villages must located within two hours driving time from urban areas around million people. Sites must also selected within major forest areas around 100 hectares, where the villages can developed.Today,the average occupancy rate for all Center Parcs sites stands 86%, which exceptional the tourism and leisure industry. 
"Local" customers 
The Center Parcs concept focuses holidaymakers looking for upscale service for short but frequent "escapes".The majority customers are families with children, from middle upper socio-economic groups. However, the "adults without children" segment has recently grown more quickly than the family segment, complementing the existing loyal customer base. order meet the needs this "local" customer base, particularly for short breaks such weekends midweek breaks, the villages are open all year round and are easily accessible from major cities (Paris for the two French sites, Hamburg and Cologne for the two German sites,Amsterdam and Rotterdam the Netherlands and Antwerp and Brussels Belgium). 
CUSTOMERS GEOGRAPHICAL ORIGIN 

France 

Germany 24% 

Belgium 

Netherlands 

47% Group-wide marketing policy focused the brands. 
Each the 

Pierre Vacances Group's brands has its own marketing policy, 

which makes all available media. broad marketing policy 
 brochures, with each brand publishing brochure for each season and each type destination (seaside mountain resorts).The Group prints over million brochures for each brand every year. Center Parcs has specific strategy for each market and distributes nearly 
7.5 million copies its brochure Europe every year; 

 commercial websites for each brand, which are frequently updated. Customers increasingly use this means booking holidays, and appreciate the fact that the websites include details availability. 


 advertising, with each brand running regular radio and television advertising campaigns during key holiday reservation periods; 


 relational marketing, drawing each brand's customer databases.This ensures the management and monitoring cross-brand transactions, allowing each brand benefit from other brands' customer data.The customer relationship key element improving the sales and marketing yield. Pierre Vacances has recently enhanced its customer loyalty programme with the creation Preferences, programme offering number advantages help the brand meet the needs its loyal customers. Programme members benefit from both commercial advantages (Preference periods offering discounts 20%, apartment upgrades, exemption from booking fees) and privileges (delivery towels and sheets the apartment, dedicated telephone line, priority delivery catalogues, deposit cheque requirement and access members-only section the website 2004/2005). 

TURNOVER DISTRIBUTION CHANNEL GROUP 58% 

Direct sales 29% 

Works councils 

Tour operator 

Travel agencies 

10% 

The marketing policy 
backed tailored distribution strategy 
The Group aims for all its distribution channels contribute the development its activity, optimise its results. 
Indirect sales are channelled via 5,000 French travel agencies and some 200 contracts with international tour operators, which promote Pierre Vacances and Maeva products France and abroad. Center Parcs has network travel agents that promote the brand under specific sales agreements. 
With view enhancing customer loyalty and improving its margins, the Group aims further increase its direct sales. 
Direct sales are made via three channels: 
 call centres Paris for the Pierre Vacances and Maeva/Orion brands and each country which Center Parcs present. addition, the Group has seven agencies located Paris and large cities across France, and Pierre Vacances has direct sales subsidiary Karlsruhe,Germany.These channels sell all Pierre Vacances, Maeva and Rsidences MGM brand products directly; 
TURNOVER DISTRIBUTION CHANNEL 

 all the Group's residences and villages, from which customers can make reservations.This channel,which accounts for nearly 15% sales, particularly popular among Orion customers; 


 websites for each brand, offering virtual site tours, details availability and online booking.These tools underpin the growth direct sales offering permanent sales outlet and means tapping European internet users. the first half 2004, the Pierre Vacances, Maeva and MGM sites will connected new proprietary reservation system which will offer improved access and sales functions for both direct customers and distributors. addition, regionally-focused sales force spread throughout France works with over 4,000 works councils.The Group also has sales force specialised the conference market, which complements the turnover those sites (notably hotels) that offer facilities adapted this type demand. 
PIERRE VACANCES RESIDENCES MGM 

44%
Direct sales 

Direct sales 

Works councils 

Tour operators 

Tour operators 

Travel agencies 

Travel agencies 

54% 

CENTER PARCS MAEVA 

23% 77% 

28% 42%

Direct sales 

Works councils Tour operators Travel agencies 

Direct sales 

Tour operators 
24%
 
Property development, source growth for the Group 
The Pierre Vacances Groups 

integrated property development 

business enhances the growth its tourism activities. 
Property development underpins the tourism business 
Every year, the catalogue includes new destinations with innovative features that correspond new holiday trends, for example, the Belle-Dune eco-village (Somme), green tourism with Monflanquin (Lot-et-Garonne) urban tourist residences such Val dEurope the Paris region and Buttes-Chaumont Paris. This organic growth helps maintain standards: quality Pierre Vacances' key selling point with foreign tour operators and secures customer loyalty. 
35% seaside apartments and 16% apartments mountain resorts currently managed the French Tourism Pierre Vacances division were designed renovated the Group's property development arm.The rest were acquired externally. 

Stages property development project 
Pierre Vacances adheres very strict rules before launching any commercial development programme: 

 before acquiring any land, obtains the official permits required and ensures that free charges.The only external expenditure incurred this stage relates the professional fees required obtain planning permission; 


 the sale residences the design stage. Construction only begins once 50% the property has been sold; 


 Pierre Vacances provides purchasers with guarantee completion endorsed bank.This guarantee means deeds sale can signed the presence notary before construction completed, and funds can called for according standard timetable: reservation, 29% signing the deed sale, 33% when the foundations are laid, 17% completion the internal walls, and 16% when the VAT reclaimed. 

The payments made purchasers construction renovation proceeds finance the development properties Pierre Vacances. 
Product definition and land prospecting (over 6-12 months) are completed site operators and property specialists, who work together decide what regions prospect, since the product must both satisfy customers' aspirations and offer attractive investment opportunity for private investors.This collaboration between the different teams, from the start project until delivery the site operator, guarantees the project success both terms property development and tourist residence and forms integral part the Pierre Vacances model. 
Property development 
Marketing the residences (less than one year) carried out Pierre Vacances Conseil Immobilier (PVCI) via its in-house sales network, which registered estate agent, independent advisers (specialist organisations,banks,private bankers,etc.).This network also sells apartments existing residences that are due for renovation acquired Pierre Vacances part its external growth strategy. The presence in-house network property advisers significant advantage terms managing the sales policy and promoting the Pierre Vacances Group's brand image among investors. 
PVCI has network exclusive property advisers active France,Italy and Spain.The back office and sales administration department remain their disposal assist the network its mission, including the follow-up projects and customer relations. Selling costs comprise marketing costs and PVCI's fees, representing 13% exclusive tax total sales inclusive tax. PVCI also manages the resale these apartments, thereby guaranteeing investors liquidity for their investment. 
Construction months) managed Pierre Vacances Dveloppement (PVD), the Group's project management company, which oversees all stages developments from site selection turnkey delivery Pierre Vacances Tourisme investors.The company charges project management fees amounting (exclusive VAT) the project value inclusive VAT. PVD may also act project manager for third parties, with Pierre Vacances Conseil Immobilier contracted find investors and Pierre Vacances Tourisme contracted operate the site. 
The property development company bears the preopening costs and the cost providing the basic equipment required operate the site. 
Delivery usually the end June for seaside resorts and mid-December for mountain resorts, ensuring they are immediately available for operation. 
Development strategy 
Developing the Groups brands: the complementarity the Pierre Vacances and Maeva brands means new destinations can added Maevas portfolio.This sector development focuses tourist resorts where dual-brand presence reinforces the Groups growth prospects letting markets, Maeva offers smaller-sized products than those sold under the Pierre Vacances brand. the same time, the Groups property development specialists provide project management developing the Center Parcs concept France. Public funds will help finance the development new sites, well their infrastructure and leisure facilities.The accommodation will financed using the Pierre Vacances Groups usual solutions.The design commercial and leisure facilities will enhanced include more village squares and walkways, while respecting the principles which the success Center Parcs founded. Lastly, cottages will designed take into account traditional local architectural styles. sales options: 
Proprit Pierre Vacances 
Proprit Financire Pierre Vacances avec sjours 
Proprit Financire Pierre Vacances 
The renovation programme essentially concerns tourist residences built over the past years, which the Group has acquired from institutional investors.The Groups property development teams lend their expertise planning major renovations apartments and infrastructure facilities. PVCIs teams sell these units using the Groups traditional solutions. Some the residences are already operated the Pierre Vacances Group, which will thereby have the opportunity modernise residences that already appear its brochures bring them into line with future standards. other cases, the Group will able complement its offer with new destinations that meet customer demand. 
These transactions are concluded much faster than transactions new property, with only 12-15 months separating pre-purchase negotiations from delivery the renovated site after the sale accommodation units.The financial expense incurred the acquisition these residences largely offset Group level the earnings generated operating them. 
Financing new sites 
Apartments and houses are acquired freehold: this enables investors receive rental income, benefit from tax incentives and make personal use the property. 
French Law 90-1169 December 29th 1990, amended July 9th 1991, stipulates that the purchaser apartment holiday residence who entrusts the management the property single operator can reclaim VAT under certain circumstances, for example the property classified the Prefect, used tourist accommodation, subject lease agreement with minimum term nine years, and provided commitment made market the property abroad. 
The investor only pays the acquisition price, exclusive VAT, while the Pierre Vacances Group assumes responsibility for paying and reclaiming the VAT. Pierre Vacances frees the investor from all financial constraints and property investment management responsibilities committing ensure the maintenance and management the property for the duration the lease. 
Three sales options 
Proprit Pierre Vacances offers two main advantages. First, the buyer granted vendor loan, corresponding approximately 14% the amount the initial investment, inclusive VAT. Second, revenue guaranteed, partly cash and partly kind. The Group signs 11-year lease with the buyer, whereby Pierre Vacances pays rent amount cash equal the annual repayment the loan granted, and rent kind corresponding the periods occupied the owner (maximum: weeks during high season, week mid-season and weeks low season). 
Proprit Financire Pierre Vacances avec sjours enables investors combine guaranteed income, net charges, with personal use the property. 
Proprit Financire Pierre Vacances guarantees the investor annual rental income cash over nine-year period, equal (or 4.5% for furnished units) exclusive VAT the initial investment, exclusive VAT and net charges.This option accounts for 80% new renovated apartments sold. 

Property development 
Four tax incentives apply this type investment France 
Under the tax status non-commercial furnished property lessor notary expenses, land tax and the amortisation property and furniture, are deductible the investors net income. 
The tax status commercial furnished property lessor offers other tax incentives, such wealth tax, capital gains tax and inheritance tax benefits, and longterm tax-exempt revenues. 
Tourist residences rural renewal zones entitle investors tax relief 15% the acquisition price exclusive VAT, within the limit  92,000 for married couple.The tax reduction applies irrespective the amount income tax paid the investor. 2004, the tax deduction rate will raised 25% and the limit  100,000, and coverage will extended new geographical regions. 2004, new finance act will provide for tax credit 10% the acquisition price exclusive VAT, within the limit  100,000, investments renovated property. connection with renovated property, the negative gearing generated some the renovation works may, under certain conditions, offset against taxable income and give rise additional tax savings. addition these tax incentives, the sound reputation the Pierre Vacances Group provides these investors
 with financial security and guarantees the quality the
 product.
 
The benefits ownership include access the Pierre
 Vacances property exchange, price reductions Group
 holidays and privileged treatment sites.
 Investor satisfaction high, with average lease renewal
 rate over 80%. Owners have also referred many new
 investors the Group.
 
The Groups international expansion has seen the
 Pierre Vacances concept exported Italy and
 Spain, with view rapidly acquiring significant
 number holiday rental sites.The Group thus forging
 partnerships with local professionals and has signed
 operating agreements sites that have been renovated designed its property development teams. New
 destinations are being developed, with apartments sold individual investors using financing solutions similar
 those offered France.
 
Sustainable development 
The Pierre Vacances Group seeks achieve sustainable  

profitable growth adhering growth model that compatible with 

its environment and accepting its responsibilities. development model focused long-term economic responsibility 
From the very beginning, the Pierre Vacances Group has relied upon simple strategy based letting rather than retaining ownership property built acquired under its expansion. Unlike with traditional real estate developers, the property built acquired the Group not intended for resale but kept under Group management via long-term commercial leases. The Pierre Vacances Group accepts full responsibility for the quality its property, which guarantees its profitability and optimises relations with its customers, partners, tourists and owners. 
The sale the property still owned Center Parcs Europe, concomitant the acquisition 100% the company September 26th 2003, once again demonstrates this strategy action. Center Parcs' portfolio properties represents genuine pan-European rental asset that generates recurrent, stable operating margins. 
The renovations carried out number sites are also part strategy continuing the profitable exploitation these assets over the long term adapting them the evolving requirements consumers and investors. 
The Groups current growth strategy underpinned the same principles, ensuring profitability for its shareholders and customer-investors. 
Two levels operational and strategic governance 
The Pierre Vacances Group has two main management bodies which validate its strategic decisions. 
The Board Directors Pierre Vacances S.A. made members(1), including three who hold executive positions within the Group and four independant directors (including one representative from CDC-Ixis, minority shareholder and long-standing partner the Group). The Board met times during the 2002/2003 financial year, with attendance rate around 66.67 each meeting. 
The Groups 22-member Executive Committee 
includes the heads both the operating divisions and the corporate departments (finance department, corporate secretariat, information systems, purchasing, human resources, etc.).The Committee meets regular basis (at least four times per year) assist the Chairman and the Board Directors developing the Group's strategy and taking decisions relating the development and management the Group. 
These two decision-making bodies are supported committees specific the different operating divisions, namely: 

 the Tourism Committee: comprised the top managers Pierre Vacances Tourisme and the Group finance department, this committee sets the tourism strategy for the Pierre Vacances, Maeva and MGM brands; 


 the Board Management and Supervisory Board Center Parcs Continental Europe: these management bodies are required Dutch legislation (Center Parcs Europe's head offices are located Rotterdam).The Supervisory Board comprised non-Group representatives; 


 the Property Committee: comprised the heads property development and sales, this committee rules property development transactions, sales and marketing strategy and the different property sales schemes. 

(1) including one appointement proposed the General Meeting March 11th 2004. 

Sustainable development 
Environmental responsibility 
The Group originally established its reputation the developer the first French car-free mountain resort Avoriaz.The organic growth its property portfolio through construction always guided the objective minimising the impact the environment. Pierre Vacances efforts this area include respecting the surrounding area, not only adhering local architectural norms, but also through its choice materials and methods, preserving existing trees the site, using local species when creating botanical walkways, systematically buying building materials site,etc.The fact that most the Groups customers are families means that special emphasis must placed health issues and product safety. Health and safety inspections, such checks for asbestos and legionnaires disease, are carried out regularly, and operating staff receive special training site safety. 
Center Parcs, the first tourist company receive ISO 14001 certification, sets example terms environmental policy applying its Environmental Management System its sites and head offices.As such,each employee must aware the consequences their own actions the environment and consider these consequences the accomplishment their daily tasks and their decisions. For instance, special waste sorting platforms have been installed provide easy access for employees and customers.These practices have been extended different levels within the company and are checked regularly external auditors. 
Lastly, the Pierre Vacances Group works collaboration with the local authorities promote the development green tourism and local employment, and enable the financing tourist facilities more rural sites (e.g. Center Parcs Ailette Picardy and the Belle-Dune Eco-Village the Somme). 
COMPOSITION THE EXECUTIVE COMMITTEE 
 Grard BREMOND 
Chairman and Chief Executive Officer 
 Franois GEORGES 
Chief Executive 
 Patricia DAMERVAL 
Group Chief Financial Officer 
 Thierry HELLIN 
Group Corporate Secretary 
 Pascal DUMINY 
Head Group Informations Systems 
 Louis SABBAGH 
Head Group Purchasing Department 
 Eric BLEUZE 
Head Group Development 
 Jrme GIMENEZ 

Head Group Human Resources Department 
 Martine BALOUKA 
Chief Executive Officer Pierre Vacances Maeva Tourisme 
 Antoine FOMBELLE 
Chief Executive Officer Pierre Vacances Dveloppement 
 Isabelle WAVRECHIN 
Chief Executive Officer Pierre Vacances Conseil Immobilier 
 Martin ROBINSON 
Chief Executive Officer Center Parcs Europe 
 Xavier GUILBERT 
Deputy Chief Executive Officer Center Parcs Europe 
 Pascal FERRACCI 
Deputy Group Chief Financial Officer 
 Christian BERTIN 
Deputy Chief Executive Officer Pierre Vacances Maeva Tourisme 
 Jean-Luc CHRETIEN 
Deputy Chief Executive Officer Pierre Vacances Maeva Tourisme 
 Jean CHABERT 
Deputy Chief Executive Officer Pierre Vacances Dveloppement 
 Max JACOBSEN 
Head Operations Center Parcs Europe 
 Jerry GOLDBERG 
Head Marketing/Sales Center Parcs Europe 
 Antoine LEVENT 
Head Property Management 
 Mark HAAK WEGMANN 

Head Innovation Center Parcs Europe 
 Dominique MENIGAULT 
Head Sales Pierre Vacances Conseil Immobilier
 
Social responsibility September 2001, the Group reorganised itself into single structure grouping all staff from the Pierre Vacances, Maeva/Orion and Residences MGM brands, representing total 3,460 employees (full-time equivalent).The property development division and Center Parcs Continental Europe each have separate organisation. 
This structure encourages internal mobility among the teams the various entities and fosters the sharing experience within the Group.The full acquisition Center Parcs Europe combined with the development new sites will offer all staff additional opportunities for professional and personal development the European countries which the Group active. 
The various divisions receive functional support from the corporate departments Pierre Vacances Services, which combines the finance, information systems, purchasing, communication and development departments and the corporate secretariat (legal department, group human resources department and general services). 
Over and above immediate financial profitability, the Group fully pledged considering the social and ethical interests both employees and society large order anticipate and integrate their expectations early possible.This socially-responsible approach reflected major initiatives number areas. 
Social matters 
The Group has put place structures and management team that encourage innovative practices terms training and skills development, performance assessment and recognition, career advancement and mobility, cohesion and its relationships with its social partners. this spirit that Group human resources department was set 2002 harmonise human resources policies while respecting the uniqueness each brand and business and the promotion best business practices. significant effort has been made foster dialogue between management and social partners via elected bodies and consolidate the social and organisational progress linked the adjustments the working week and the introduction more dynamic performance-related pay schemes (total compensation). 
Likewise, Group training programmes, which are often held holiday sites, have begun include specific sessions anticipate and satisfy the needs staff and the company far possible.These sessions are held regularly throughout the year and cover various topics such management, sales, and foreign languages. encouraging the development its employees within the Group and recognising all employees' rights assessment, development and information, the Pierre Vacances Group able capitalise their human and professional values. order complete these ambitious projects, Pierre Vacances Tourismes Human Resources Department has adopted more professional approach, creating department focused skills development and internal communications department, both which support its traditional role personnel management. 
Corporate citizenship 
The Group takes concrete action all levels this area. Several initiatives have been launched partnership with leading socio-economic welfare groups help tackle social exclusion and foster multicultural integration within what international Group. For example, initiative with French anti-racism group, SOS Racisme, sponsors young graduates non-French background, encourage their employment management positions. 
The Group also participates meetings the Institut Mcnat Solidarit (an organisation that encourages corporate social responsibility) order promote programmes involving the company social responsibility, its commitment corporate citizen, the management diversity and its involvement regions and neighbourhoods. 
Women are well represented within the Group's structure and constant monitoring ensures that their 

Sustainable development 
career advancement matches that men. Furthermore, the management bodies everything their power offer flexible working conditions. 
Lastly, given the high proportion young people the Groups workforce, the Group fully committed rethinking its structures and its working methods order attract new staff and integrate them quickly and successfully into its teams. 
Besides the benefits for the people involved, given the real risk labour shortage the medium term (within 5-8 years), the successful implementation and development these initiatives will help the Group anticipate and rise the challenges integrating people from diverse backgrounds. 
HEADCOUNT HEADCOUNT ENTITY COUNTRY 
Employee data: 2002/2003, the Pierre Vacances Group employed 8,406 people compared with 8,387 the 2001/2002 financial year, representing increase around 0.2%. 
The workforce includes seasonal workers required tourist resorts during the high season. Staff numbers fluctuate 30% 40% according season the course single financial year. 
Details changes the Group's average headcount over the past three years are included Note the consolidated financial statements. 
Hours training and training expenses 52,500 hours 2.24% total wage bill.The social assessment for 2003 will available the end April 2004 and may consulted its paper version the Groups head office. 
BREAKDOWN
 WOMEN/MEN

10% 41% 53% 60% 9%58% 27% 

40% 

Tourism 

Property 

Center Parcs 

Composition the Board Directors 
Grard Brmond 
Chairman and Chief Executive Officer 
Franois Georges 
Chief Executive 
Olivier Brmond 
S.I.T.I. SA, represented Thierry Hellin Michel Dupont Sven Boinet Marc Pasture 

France 

Women 

Netherlands 

Men 

Germany 

Belgium 

Italy 

BREAKDOWN TOTAL HEADCOUNT SOCIO-ECONOMIC CATEGORY 
8,406

8,387 8,406
8,238 8,238 8,387 
8,000 

8,000 
6,000 
6,000 
4,000 
4,000 
2,797 
2,000 
2,000 

1999/2000 2000/2001 2001/2002 2002/2003 2000/2001 2001/2002 2002/2003 
Fixed-term contract 
Permanent contract 
Executive staff 
Supervisory/clerical staff 
Contents
 

GROUP MANAGEMENT REPORT P.35 

CONSOLIDATED FINANCIAL STATEMENTS P.55 

PARENT COMPANY FINANCIAL STATEMENTS P.107 

LEGAL AND ADMINISTRATIVE INFORMATION P.123 
GROUP MANAGEMENT REPORT 

Presentation the Groups activities 
and performance 2002/2003
 

Analysis the 2002/2003 
consolidated results
 

Recent developments
 and future prospects
 
Group management report 

For the 2002/2003 financial year, the Pierre Vacances Group recorded marked growth its results, demonstrating its ability weather the challenging economic climate. 
The Pierre Vacances Groups turnover for the financial year ended September 
30th 2003 amounted  881.5 million.
 The Group manages around 45,000 apartments and holiday homes, representing total 205,000 beds primarily located France (in mountain, seaside and country
 side resorts, Paris and the French West Indies), the Netherlands, Germany, Belgium,
 Italy and Spain.
 Changes the tourist property portfolio during the 2002/2003 financial year included:
 the delivery properties developed the Group (809 apartments and holiday homes), number renovations (798 apartments delivered) and property development Italy;
 the disposal approximately 4,000 apartments, pursuant the decision the DGCCRF (French Competition and Consumer Protection Agency) concerning the acquisition Maeva. 

PRESENTATION THE GROUPS ACTIVITIES AND PERFORMANCE 2002/2003 
Performance the groups activities over the 2002/2003 financial year 
TOURISM 
Over the period, turnover from the tourism business stood  692.9 million, representing 4.3% drop 2001/2002, mainly due the disposals required the DGCCRF (French Competition and Consumer Protection Agency) concerning the acquisition Maeva. 
Turnover from tourism rose 0.9% like-for-like basis (*) over the period. This was essentially driven the 1.9% increase turnover from accommodation the back 4.0% rise the average letting rate  498 per week. The number weeks sold recorded slight drop 2.0% (at 828,101), with average occupancy rate 67.9% for the period. 
Total turnover  692.9 million  686.7 million +0.9 
Turnover from accommodation  412.9 million  405.1 million +1.9 
Occupancy rate 67.9 70.2 -3.2 
(*) like-for-like basis, the figures for 2001/2002 financial year are restated take into account the following items: 
-Rsidences MGM consolidated over months (January 1st  September 30th)
 Maeva consolidated over months (versus months the reported 2001/2002 financial statements)
 the residences sold France Location and Lagrange December 2002, pursuant the agreements signed with the DGCCRF (French Competition and Consumer Protection Agency) approving the acquisition Maeva, have ben excluded the consolidation scope since the 1st October 2002 

Pierre Vacances, Maeva and Rsidences MGM like-for-like basis  i.e. after restating the 2001/2002 figures primarily take account Rsidences MGMs activity and the sale apartments required the DGCCRF (French Competition and Consumer Protection Agency)  the turnover the Pierre Vacances, Maeva and Rsidences MGM brands remained stable compared with 2001/2002. 
Turnover from accommodation rose 1.2% due to: 4.0% increase the net average letting rate  469 per week. This reflected average price increase some 2%, improvement the product mix, with the greater number four-sun apartments pushing the letting rate around 1%, and reduction marketing expenses; 
Seaside resorts 457.0 443.8 +3.0 
Mountain resorts 467.7 443.5 +5.5 2.7% drop the number weeks sold 614,883, compared with 631,649 2001/2002. This was due lower occupancy rates result the challenging economic environment. The overall average occupancy rate was nonetheless high, 63.9%, with 64.5% for Pierre Vacances, 62.0% for Maeva, 76.5% for Rsidences MGM. 
Seaside resorts 364,296 384,698 -5.3 61.1 63.4 -3.7 
Mountain resorts 190,567 193,001 -1.3 71.3 74.0 -3.7 
SEASIDE RESORTS 
Turnover from accommodation fell 2.5%, mainly reflecting the lower occupancy rate (down 3.7% 61.1%) which was partially offset the 3.0% rise net average letting rates. This pressure occupancy rates arose from extraordinary events including the Prestige oil spill and the numerous fires the Var region. Despite this unfavourable backdrop, the Group decided not sacrily the prices rather than improve its occupancy rates the short term. Excluding these extraordinary events, turnover from seaside accommodation would have risen against the previous year. 
Group management report 

MOUNTAIN RESORTS 
Turnover from accommodation mountain resorts was 4.1%, driven increase average net letting rates almost 5.5%. The average occupancy rate came out 71.3%. Like the previous year, the winter season was particularly satisfactory, despite the drop the number foreign tourists. 
CITY CENTRES 
The annual growth turnover from accommodation was exceptional, coming out 29.6%. This performance was due the opening the Val dEurope and Rome residences 2002/2003, overall good activity for all the Paris sites and the signing long-term agreements the Buttes Chaumont and Klber residences. 
This type destination now represents one the strategic focuses the Groups development policy. 
FRENCH WEST INDIES 
Turnover from accomodation fell 9.4% over the period. Although average letting rates increased 6.8% the back improved product segmentation, which prompted the Group offer customers full hotel service apartments privileged locations, the number weeks sold declined 15.1%. 
The focus French tour operators and local authorities turned away from these destinations this year, result the negative impact the events September 11th 2001 and the war Iraq all tourist activities the French West Indies and the reduced number flights the region. 
Consequently, the Group particularly developed its local sales with groups, seminars and accommodation for events (weddings, etc.). 
Turnover from accommodation generated across all destinations Italy stood  10.0 million (against  6.9 million 2001/2002). 
Center Parcs Continental Europe 
Turnover grew 2.6% like-for-like basis compared with 2001/2002. Turnover from accommodation was 3.6%, driven 3.7% rise average net letting prices mainly due the improvements the product mix (rebranding policy former Gran Dorado sites and the full-year impact the reopening the renovated Eemhof site 2002/2003). 
The number weeks sold remained stable overall, with the impact the reopening the Eemhof site (increasing the total offer 2%) offset lower occupancy rates Germany due the tough economic environment. 
The breakdown country turnover from accommodation shows growth for the Netherlands (+7.9%) and France (+3.9%), while Germany and, lesser degree, Belgium recorded slight drop turnover (-4.1% and -1.7% respectively) linked lower occupancy rates. 

Netherlands 111,640 108,521 +2.9 85.0 86.6 -1.9 
Germany 37,000 39,260 -5.8 79.3 83.2 -4.6 
Tourist Residences and Villages portfolio end-september 2003 the Group's properties are located France, sold under main brands: Pierre Vacances, Maeva, Rsidences MGM and Center Parcs. 
The Pierre Vacances Group therefore able offer wide range destinations across France: the Alps, the Pyrenees, the French Riviera, the Atlantic and Channel coasts, Provence, Paris and the French West Indies. Europe, the Group also present the Netherlands (11% properties), Germany (4%) and Belgium (3%) under the Center Parcs brand and Italy under the Pierre Vacances brand. 
The Group's acquisition Valtur Casa, the agreement signed manage Bagaglinos properties and the opening the Dehon residence Rome April 2003 rank the Group among the market leaders Italy with 2,233 apartments (5% the whole groupe portfolio). 
The Group also present Spain through the marketing activity the Maeva Group. This presence set expand the Group will run two tourist sites the country (including 250 apartments Tarragona which were launched for marketing 2002). 
France 18,501 12,677 891 -1,439 33,508 
French West Indies 851 ----851 
Netherlands ----5,126 5,126 
Germany ----1,830 1,830 
Belgium ----1,324 1,324 
Italy ---2,233 -2,233 
TOTAL 19,352 12,677 891 2,233 9,719 44,872 
Group management report 

Management the tourist residences and villages portfolio France (excluding the Center Parcs villages): 
The apartments and holiday homes are owned private investors (66%) and institutional investors comprising essentially insurance companies and property investment funds (31%), with the remaining owned the Group itself. 
The tourist residences and villages portfolio managed under two schemes:
under lease agreements, the lessee Pierre Vacances Group company) undertakes pay rent irrespective the profit generated from operating the property. The remaining income after rental payments therefore the lessee's profit. The cost refurbishment work borne either the lessor/owner Pierre Vacances;
under management agreements, the agent Pierre Vacances Group company) acts service provider 

and invoices the client for managing and marketing 
the property. All operating income accrues the owner 
(the client). some cases, the Pierre Vacances Group 
guarantees the owner minimum income, and any 
additional profits are split between the two parties. 
Outside France: line with its strategy, the Group sold the lands and the buildings eight Center Parcs sites which owned the freehold. September 30th 2003, the entire Center Parcs Continental Europe property portfolio was owned institutional investors who had taken out leases with Pierre Vacances generally covering years, apart from the Eemhof site, whose sale was finalised October 2003 and about one hundred apartments three former Gran Dorado sites owned private investors. Group level, the end September 2003, 49% the property portfolio was owned private investors and 47% institutional investors, while the remainder was owned directly the Group. 

Private investors 13,972 6,758 891 21,621 414 127 22,162 
Leases 13,870 5,585 891 20,346 -127 20,473 
(*) Excluding Center Parcs Continental Europe 
PROPERTY DEVELOPMENT 
Consolidated turnover from property development reached  188.6 million compared with  70.6 million 2001/2002. Two-thirds this amount were generated through four programmes, including one new property (Val dEurope) and three under renovation (Cannes Beach, Les Issambres, Mandelieu). 
During the financial year, 1,607 units were delivered and sold versus 568 units 2001/2002. These new units are located: the Atlantic coast: Bourgenay Moulin, Guilvinec, Branville, Ploemel Carnac the French Riviera: Cannes Beach, Issambres, Mandelieu 
-in mountain resorts: Valmeinier IV, Ax-les-Thermes, Saint Lary, Avoriaz the countryside resorts: Marciac, Monflanquin city centres: Val dEurope (Paris) 

The integration Maeva, with its portfolio wholly-owned residences, provided the Group with the opportunity carry out renovation work and subsequently resell the property, allowing finance these assets and upgrade the residences, which are situated prime locations. 
The commercial and qualitative success this innovative programme has encouraged the Group extend other sites. Consequently, the 2002/2003 financial year saw the delivery renovated properties Cannes, Les Issambres and Mandelieu the French Riviera, Carnac Brittany and Branville Normandy. 
This new policy will extended property acquired externally. addition the Cannes Beach property (690 units) currently under renovation, the Group purchased portfolio tourist residences from GMF-MACIF and tower located the Front Seine area Paris which will undergo renovation within the next two years. 

All these projects, addition Pierre Vacances Development's traditional property development business (Loches, Biscarrosse, Saint Jean Pied Port, Port Bourgenay, etc.) should help maintain sustained activity over the years come. 
The volume business generated Group and non-Group property development programmes (total reservations signed during the year, inclusive VAT and net cancellations over the same period) reached  241.8 million, corresponding 2,038 reservations (including  19.4 million the resale existing property), compared with  143.0 million 2001/2002 (including  21.9 million the resale existing property). 
NEW 
Atlantic coast 231 240 
Channel coast -31 
Brittany -195 
French Riviera 643 245 
Other 4975 
Group management report 

List apartments the process marketing September 30th 2003 are shown the table below: 
ATLANTIC COAST 
CHANNEL COAST 

Branville* Jun-03 
Trouville* Mar-04 Mar-05 110 
BRITTANY 
FRENCH RIVIERA 

MOUTAIN RESORTS 516 
Val d'Europe 4th Quarter 1st Quarter 291 100 renovation ZRR (Rural renewal zones) 
ANALYSIS THE 2002/2003 CONSOLIDATED RESULTS
 
HIGHLIGHTS 
Acquisition Rsidences MGM February 10th 2003, Pierre Vacances acquired the
 management activity luxury resorts under the
 Rsidences MGM brand.
 
All these residences are rated 4-star and offer spacious
 apartments and first-class facilities (indoor swimming pool,
 fitness centre, hammam and sauna). The acquisition was line with the Groups strategy expanding its range offering its customers luxury residences mountain
 resorts. This highly targeted acquisition will also enable
 Pierre Vacances gain wider access new tour
 operators for all its brands.
 
The Group now manages mountain resort residences
 (Chamonix, Les Arcs, Les Carroz dArches, Les Houches,
 Les Menuires, Plagne, Mribel, Pralognan, Tignes and
 Val dIsre) and seaside resort residence (Deauville). 
The net cash allocated the acquisition the management these residences, representing 939 apartments,
 amounted  13.5 million.
 
Purchase MidOceans stake Center Parcs, making the Group the sole shareholder September 26th 2003, Pierre Vacances purchased MidOceans stake Center Parcs Continental Europe, thereby consolidating its leading position Europe leisure residences. 
The total acquisition cost the shares and shareholders' loans amounted  303 million, including  270 million for MidOcean. total  126 million goodwill arose this transaction. the Group has been managing Center Parcs Continental Europe since March 2001, the acquisition presents operational risk. 
This acquisition took place the end the 2002/2003 financial year, therefore impacting the balance sheet but not the income statement. 
Sale and lease-back the lands and buildings eight Center Parcs villages the same time acquired the remaining stake Center Parcs and line with the Groups financial policy not retaining ownership the assets manages, Center Parcs Continental Europe sold the lands and buildings eight villages which owned the freehold. September 25th 2003, the lands and buildings seven the eight villages still owned Center Parcs were sold non-Group company, Green Buyco BV, for  440 million ( 413 million net fees and tax). This disposal allowed for the repayment all Center Parcs Continental Europes debt. 
The Pierre Vacances Group also signed agreement for the sale the lands and buildings the Eemhof village the Netherlands consortium led the non-Group Dutch company, Zeeland Investments Beheer, for  million ( million net fees and tax). This transaction was finalised October 30th 2003. 
Center Parcs Continental Europe, which signed leases with the new owners for 11.5-15 years, will continue run these eight villages. 
This acquisition and these disposals will have positive impact Group results. Their accretive impact 2002/2003 results would reflected growth earnings per share before extraordinary items about 30% before goodwill amortisation (15% after). 
PRESENTATION THE CONSOLIDATED FINANCIAL STATEMENTS 
Accounting principles and methods 
Under the accounting principles and valuation methods used the Pierre Vacances Group, only the following items are booked turnover: the tourism side, income exclusive VAT from holidays sold and related income generated under lease agreements. For residences run under management agreements, only management fees invoiced the client are booked turnover; the property development side, sales generated the business, corresponding residences delivered during the financial year and for which notarised deed sale has been signed. 
The results the property development business are therefore recognised the profit and loss account the date completion the works and once the notarised deed sale has been signed. 
Activity 

The 2002/2003 financial year was marked by: 
-sustained growth Group income despite the challenging economic climate: 

 10.9% growth turnover  881.5 million. 


 25.7% rise net income before extraordinary items  40.1 million.
 


 25.1% growth net attributable income 
 47.3 million. 

-the full acquisition Center Parcs Continental Europe, strengthening the Groups position Europe and enhancing its development prospects. 
Group management report 

Turnover 
Consolidated turnover for 2002/2003 includes the Group's 50% share turnover generated Center Parcs Continental Europe over the full year and that Maeva over 12-month period. addition, the activity Rsidences MGM, acquired during the year, was consolidated over months. 
Consolidated turnover for the 2001/2002 financial year included months activity for Maeva (from September 2001 September 2002). the acquisition date the Maeva group (September 4th 2001) was very close the year-end closing the Pierre Vacances Groups accounts, only the opening balance sheet was consolidated 2000/2001 and the activity for September 2001 the Maeva sub-group was consolidated 2001/2002. 
2001/2002 turnover also included the contribution the residences sold France Location and Lagrange, pursuant the decision the DGCCRF (French Competition and Consumer Protection Agency) approving the acquisition Maeva. These residences were not consolidated the 2002/2003 financial statements. 
Consolidated turnover for the 2002/2003 financial year rose 10.9%  881.5 million, compared with  794.7 million the previous financial year. Like-for-like, sales increased 16.4%.  This trend was due the strength the property development business, particular the renovation activity, tourist activities overall remained flat. 

Pierre Vacances Maeva Rsidences MGM 431.3 461.3 -6.5 -0.1 
Turnover from the tourism business stood  692.9 million, compared with  724.1 million 2001/2002. like-for-like basis, turnover from tourism rose 0.9%, mainly due to: 
-the 1.9% increase turnover from accommodation thanks the rise average letting rates  498 per week (resulting from the new pricing policy and improvements the product mix and sales strategy). The number weeks sold fell due the drop the occupancy rate 67.9% for the period (compared with 70.2% 2001/2002); stabilisation turnover from supplementary incomes (-0.5%): Center Parcs activity grew 1.7% over the period, while that Pierre Vacances/Maeva/Rsidences MGM (which does not generate profits) fell 2.6% result depackaging and the outsourcing some activities. 
Turnover from property development stood  188.6 million, compared with  70.6 million the previous period. 1,607 accommodation units were delivered the 2002/2003 financial year (compared with 568 2001/2002). This sharp growth mainly reflects the development renovation activities, which generated turnover  million. 
The acquisition Center Parcs Continental Europe and Gran Dorado, together with the developments Italy, provided the Group with pan-European dimension, with accommodation France, the Netherlands, Belgium, Germany and Italy. 
The geographical breakdown turnover from tourism 2002/2003 follows: 
32.7% turnover from tourism was generated outside France 2002/2003. 
The property development arm generated 4.1% its business outside France 2002/2003. 

Earnings before tax and extraordinary items
 
Operating income 82.5 73.2 
Financial income -13.5 -15.4 
EARNING BEFORE TAX AND EXTRAORDINARY ITEMS 69.0 57.8 CONSOLIDATED COMPANIES 
Operating income Tourism 
Group operating income stood  82.5 million, compared Against particularly unstable economic backdrop marked with  73.2 million the previous year, representing the uncertain geopolitical climate (war Iraq) and the increase 12.7%. This performance mainly linked economic slowdown Europe, tourism activities recorded the sharp growth the property development business, operating income  68.3 million, unchanged while the contribution tourism activities remained 2001/2002 ( 68.2 million). virtually stable relation 2001/2002. 
This amount breaks down follows: The operating margin increased from 9.2% 2001/2002 9.4%. 
(*) including 2002/2003:
 Rsidences MGMs activity over months (not consolidated 2001/2002)
 Maevas activity over months (versus months 2001/2002) 

-the sites sold France Location and Lagrange, pursuant the agreements signed with the DGCCRF (French Competition and Consumer Protection Agency) have been excluded the consolidation scope since October 1st 2002. 
The Pierre Vacances/Maeva/Rsidences MGM division generated operating income  29.0 million, compared with  30.9 million 2001/2002. 
Pierre Vacances/Maeva/Rsidences MGM, which were particularly affected negative events (the Prestige oil spill, fires the Var region) and the slow economy, maintained their operating margin thanks tighter control operating costs and synergies arising from the integrated structure put place manage the three brands. 
The Center Parcs Continental Europe division contributed  39.3 million operating income 2002/2003 versus  37.3 million for the previous year. This improvement reflects the cost-cutting policy implemented sites and the head office the first half the year anticipation potential drop turnover from other activities. The operating margin rose 15.0% 2002/2003 (versus 14.2% 2001/2002), reflecting improvement profitability. This margin higher than that the Pierre Vacances/Maeva/Rsidences MGM division due the entitys accounting structure which books depreciation and amortisation expenses rather than rental income (the joint venture still owned the freehold eight sites until September 25th 2003). The operating margin came out 10.9% comparable Group structure basis. 
Overall, the operating margin for tourism activities rose 9.8% 2002/2003 versus 9.4% 2001/2002. 
Property development 
Operating income from the property development business totalled  14.2 million for the 2002/2003 financial year compared with  5.0 million 2001/2002. This sharp increase due buoyant activity for both new and renovated properties and the rise the operating margin, which stood 7.5% versus 7.1% for the previous year. The operating margin was boosted the renovation programmes, which generate greater margins than new property developments. 
Group management report 

Net financial income 
Financial income amounted  -13.5 million, compared with  -15.4 million 2001/2002. 
This expense mainly corresponds the cost financing the bank loan taken out Center Parcs Continental 
Net income 
Europe finance the purchase the lands and buildings eight villages, prior the sale seven sites September 25th 2003. 
The Center Parcs Continental Europe sub-group accounted for  -10.1 million total net financial income 2002/2003 (including the financial costs related its acquisition). 

Earnings before tax and extraordinary items consolidated companies 69.0 
Extraordinary items (net tax)  (*) 7.2 
(*) this table, extraordinary items include extraordinary income according the French accounting principles well other extraordinary items booked the financial year (namely the tax savings from the restructuring the French Tourism division reclassified from corporate income tax and non-recurrent goodwill amortisation reclassified from Amortisation goodwill). 
The goodwill amortisation expense totalled  6.4 million The share minority interests Group net income 2002/2003. primarily comprised the amortisation totalled  0.7 million.
 goodwill the acquisition Maeva ( 2.8 million),
 
After tax, amortisation goodwill, net income from Center Parcs ( 2.1 million), and Rsidences MGM companies accounted for the equity method and( 0.4 million) well the goodwill corresponding minority interests, net attributable income before the project management and property development extraordinary items came out  40.1 million, byactivities ( 0.5 million). 

25.7% the previous financial year ( 31.9 million). Corporate income tax (excluding extraordinary items) for the 2002/2003 financial year came  21.7 million, representing effective tax rate 31.4%. 
Extraordinary items for 2002/2003 break down follows: 
 net gain  19.9 million the sale the lands and buildings seven the eight villages owned Center Parcs Continental Europe; 

 expense  15.7 million corresponding the Groups share the purchase the stakes Center Parcs Continental Europe held mezzanine funds and its management team connection with the full acquisition the company; 

 net gain  5.8 million the restructuring the French Tourism division, mainly resulting from tax savings; 

 
 2.2 million net extraordinary expenses related the reorganisation and the cost-cutting programme Center Parcs Continental Europe; 

 
 2.3 million net costs related the set-up structures southern Europe. 

Net attributable income rose 25.1%  47.3 million, compared with  37.8 million the previous year. 
Following the exercise stock options the companys senior officers during the period, the weighted average number outstanding shares came 8,513,040 for 2002/2003 versus 8,099,861 for the previous year. 

Earnings per share rose 19.0%  5.56. extraordinary distribution reserves  1.5 per share will proposed the Joint Annual General Meeting Shareholders. dividend  per share was paid 2001/2002. 
INVESTMENT AND FINANCIAL STRUCTURE 
Principal cash flows 
Following period major acquisitions, the Group reinforced its financial structure 2001/2002 (capital increase, disposal non-strategic assets) and entered new stage development 2002/2003 with:
the continuation its external growth strategy, which included the full acquisition Center Parcs Continental Europe, partially financed the sale eight villages which Center Parcs Continental Europe had thus far owned the freehold, and the acquisition the management activity residences under the Rsidences MGM brand;
the purchase tourist residences from institutional investors for renovation and resale. 

Cash flow generated 2002/2003 the normal operations the Group's tourism and property development activities totalled  70.1 million versus  86.8 million for the previous year. The sharp increase cash flow (up  29.9 million +49.8%) was offset the change the working capital requirement ( -46.6 million). 
The Group's cash flow stood  89.9 million compared with  60.0 million 2001/2002. 
The change working capital requirement came out  -19.8 million, mainly due the change inventories held the company for renovation property development programmes (representing  -65.7 million). This primarily reflects the acquisition mid-March nine residences (Maubuisson, Leucate, Lacanau, Moliets, Rochelle, Perros-Guirec, Trouville, Touquet, Pyrnes 2000) managed the French Tourism division (amount investment including renovation work completed September 30th 2003:  29.7 million) and 32-storey tower Front Seine the center Paris ( 32.6 million). These property assets will resold private investors after renovation. 
Excluding the impact the launch the renovation business, the change working capital requirement generated cash surplus  45.9 million. 
Cash used investment transactions amounted  284.1 million, which mainly derives from acquisitions ( 233.6 million) and investments made for the development tourist activities ( 65.5 million). 
The main strategic acquisitions made during the financial year are follows:
the purchase MidOceans stake Center Parcs Continental Europe, making the Pierre Vacances Group the companys sole shareholder. This investment amounted  220.6 million (including  188.2 million paid MidOcean for its shares,  12.1 million paid the mezzanine fund and  19.2 million the management);
the acquisition the management activity tourist residences under the Rsidences MGM brand ( 13.5 million net cash was allocated this transaction). 

Group management report 

The Groups capex mainly include: 
-the Group's share (50%) the investments made the Center Parcs joint venture ( 44.6 million). These investments mainly relate site enhancements under the strategy improving the product mix ( 41.8 million). They also include the acquisition cost new land reserves ( 2.8 million) the Eemhof site the Netherlands; 
-expenses incurred the French Tourism division ( 13.3 million) furnishings for new apartments, infrastructure facilities for new residences delivered during the period and the overhaul its systems; 
-PV Italias acquisition the land and the construction new tourist residence ( 7.2 million) Cefalu (Sicily). 
The  208.7 million increase borrowings primarily reflects transactions that were specific the period, namely:
the loan taken out for the acquisition Center Parcs Continental Europe, the amount  170.5 million. The gain realised the sale the lands and buildings seven villages owned the Group was used repay Center Parcs Continental Europe's existing debt well MidOceans shareholder loan  81.5 million;
the renovation business increased the amount debt  36.8 million, which breaks down follows: 

 
 +60.1 million loans taken out finance the acquisition new residences renovated: the main transactions include the purchase portfolio eight residences from GMF-MACIF ( 22.4 million) and tower Front Seine Paris used tourist residence ( 32.3 million); 

 
 -23.3 million repaid the Cannes Beach and Cala
 Rossa renovation programmes.
 

Changes the balance sheet view the asset and liability management principles adopted the Pierre Vacances Group its tourism and property development businesses, the following points should noted regarding the contribution these two activities the consolidated balance sheet: 
-The tourism business has low capital requirement, the Groups objective not retain property ownership the residences, villages and sites that manages. Consequently, investments relate essentially the followings: 

 supplying furniture for apartments that are sold
 unfurnished individual investors;
 


 infrastructure facilities for the residences; 


 leisure facilities for holiday villages and sites (swimming pools, tennis courts, children's clubs, etc.); 


 commercial premises (restaurants, bars, conference
 rooms, etc.). 

Ownership these assets guarantees the long-term viability these sites for the Group. 
The working capital requirement the tourism business, which structurally negative, fluctuates sharply during the financial year line with seasonal factors. 
-The Group's property development business has the following financial characteristics: 

 the amount capital needed fund each new residence equivalent around 10% the cost price exclusive VAT; 


 bridging loans are set for each transaction, with
 maximum use made these facilities before the
 notarised deeds sale are signed;
 


 the relatively high size balance sheet items (accounts receivable, work progress, deferred income and prepayments) significant due the fact that revenues and margins are recognised the accounts when the property delivered rather than percentage completion basis. Once deed sale has been signed, the sale recorded deferred income the balance sheet until completion the work. the same time, costs incurred connection with the property are recorded work progress or, the case selling costs, prepayments. The Groups marketing method (properties sold off-plan for delivery completion), its insistence marketing its properties before beginning construction, and its policy not acquiring land before final planning permission has been obtained means that stocks completed properties and land are kept low. 

-However, the start-up new renovation business generates temporary deterioration the working capital requirement. This activity represents new development focus for the Group. Pierre Vacances generally acquires existing residences with 2/3-sun rating prime locations from institutional investors, renovates and upgrades them 3/4-sun rating, and resells them private investors using the Groups traditional sale formula. These residences are held during the renovation period, thus increasing the property portfolio, which temporarily weighs the working capital requirement until they are delivered the private owners. 
The change the balance sheet structure 2002/2003 was marked the acquisition MidOceans stake Center Parcs Continental Europe and the sale property assets (seven sites fully owned the Group), which enabled the Group maintain the balance its financial structure. 

The increase the gross value goodwill mainly linked the full takeover Center Parcs Continental Europe. total  125.9 million goodwill was booked this acquisition, while  9.5 million was booked the acquisition Rsidences MGM. 
The net book value the main goodwill items September 30th 2003 breaks down follows: 
The drop net fixed assets ( 106.3 million) primarily concerns the sale the freehold seven Center Parcs Continental Europe villages (net book value items sold:  208.9 million) and depreciation and amortisation ( 30.1 million), net investments made over the 2002/2003 financial year ( 75.3 million). 
The contribution Center Parcs Continental Europe net fixed assets September 30th 2003 stood  160.4 million, including  143.9 million tangible fixed assets. These assets were fully consolidated this date. 
After taking into account dividend payment  9.4 million made the first half the year, 2002/2003 net earnings  47.3 million and capital increase  0.7 million linked the exercise stock options, Group shareholders equity rose from  220.3 million  258.9 million. 
The increase provisions for risks and charges  106.4 million September 30th 2003, included: 
-the full consolidation Center Parcs Continental Europe, representing  20.8 million increase provisions;  5.6 million increase linked other changes the consolidation scope (Htel Golf Toulouse and SAGITS) concerning provisions for support funds booked result the disposal; decrease  2.2 million linked changes during the period. This includes write-backs provisions for restructuring costs booked extraordinary items for amount equal costs beard during the 2002/2003 financial year ( 2.7 million for Center Parcs Continental Europe and  3.6 million for the French Tourism division). September 30th 2003, these provisions broke down 
The Groups net debt September 30th 2003 ( 298.2 million) breaks down follows: 
Borrowings 405.2
 Cash and cash equivalents -107.0
 
For the most part, this made of:
the  170.5 million loan taken out finance the full takeover Center Parcs Continental Europe;
the  million bridging loan taken out pending the finalisation the sale the Eemhof site; 

-loans taken out the Group ( million) finance its fixed assets intended for resale, notably the Front Seine tower ( 32.3 million), the Cala Rossa site ( 13.5 million) and the GMF/MACIF portfolio residences ( 22.4 million). The net book value these assets sold amounts  124.1 million; 
-the amount still payable loans taken out buy Gran Dorado ( 15.3 million) and Maeva ( 7.6 million). These debts were refinanced part the full takeover Center Parcs Continental Europe; 
-net cash and cash equivalents. 
Group management report 

RECENT DEVELOPMENTS AND FUTURE PROSPECTS 
LIKE-FOR-LIKE GROWTH 9.3% TURNOVER FOR 2003/2004 
Consolidated turnover for the first quarter financial year 2003/2004 (from October 1st December 31st 2003) increased 61.1%  245.7 million, compared with the figure  152.5 million recorded over the first three months the previous year. like-for-like basis growth stood 9.3%. 
(*) the main adjustment 2002/2003 involved the consolidation 100% Center Parcs Continental Europe (as against the 50% stake taken into account 2001/2002, its full acquisition having been completed the end September 2003). 
(**) including +1% turnover from accommodation. 
Turnover from tourism that, like-for-like, has remained nearly stable 
Turnover from tourism the first quarter 2003/2004 stood  170.6 million, compared with the figure  172.3 million recorded the first quarter 2002/2003 restated according the Group's structure 2003/2004. This figure reflects: 
-the 1.0% increase turnover from accommodation result the 4.8% growth the activities Pierre Vacances/ Maeva/Rsidences MGM entirely due favourable calendar effect, with turnover from Center Parcs Continental Europe down slightly 0.9%. drop turnover from supplementary incomes (-3.0%). This was primarily linked the activities Pierre Vacances/ Maeva/Rsidences MGM (-5.4%) which generate margins for the Group (these activities are generally outsourced third parties). Center Parcs Continental Europe also suffered 2.4% drop turnover related these activities. The cost-cutting measures undertaken the Group anticipation offset this evolution turnover. 
Increase property development turnover  75.1 million 
Property development turnover reached  75.1 million for the first quarter 2003/2004, against the  52.5 million recorded one year earlier. 838 apartments were delivered (compared with 562 units the first three months 2002/2003), including 174 new apartments (Isola 2000) and 664 refurbished apartments (Cannes Beach, Lacanau, Maubuisson, Trouville, etc...). 
Sale and lease-back Eemhof site October 30th 2003, the Pierre Vacances Group sold the lands and buildings the Eemhof village the Netherlands external consortium led the non-Group Dutch company, Zeeland Investments Beheer, for  million ( million net fees and tax). September 30th 2003, the net book value these assets amounted  80.3 million, financed bridging loan the amount  71.0 million pending their future resale. The sale the freehold was accompanied 15-year leasing agreement relative this site, renewable the lessee for further years. Socit dInvestissement Touristique Immobilire company indirectly held the Chairman and Chief Executive Officer, founder and indirect majority shareholder Pierre Vacances SA) has purchase option enabling acquire the lands and buildings the Eemhof site when the lease expires October 2018, for  million. The annual rent provided for the contract amounts  7.65 million. This amount will revised fixed rate 2.9%. the initial lease renewed expiry the new annual rent will calculated the basis the most recent annual rent payable. Pierre Vacances guaranteed the payment the rent due its operating subsidiary Zeeland Investments Beheer. 
Acquisition Center Parcs Continental Europe Nordsee Tropen Parc holiday village Tossens Germany December 2003, Center Parcs Continental Europe acquired the Nordsee Tropen Parc village Germany 
 Tossens the shores the North Sea near Bremerhaven  from the company Eurohypo (Frankfurt) for  8.6 million. 

This holiday village comprises 345 cottages, 76-room hotel and sports and leisure facilities including tropical swimming pool, restaurants, bars and conference rooms. 
Upon completion the refurbishment works, the village will marketed under the SeaSpirit from Center Parcs brand. 
Building third Center Parcs Continental Europe village France line with its development France, the Pierre Vacances Group signed agreement with the Aisne departmental authorities November 27th 2003 concerning the construction third Center Parcs village. The village, located 120 kilometres northeast Paris, will built site covering some hectares and will include 700 cottages, tropical swimming complex, restaurants, bars, boutiques and sports facilities, for total investment  155 million. The Domaine lAilette site scheduled open the summer 2007. POSITIVE OUTLOOK FOR THE 2003/2004



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