Club Méditerranée: Revenue for the First Quarter of Fiscal 2015 (November 1st, 2014 - January 31st, 2015)

Regulatory News:

Club Méditerranée (Paris:CU):

- Business Volume Villages ¹: € 358 million - 0.3% at constant exchange rates (+1.6% reported)

- Group revenue: € 350 million - 0.1% at constant exchange rates (+1.7% reported)

- Weight of 4 and 5-Trident Customers: 82.7% + 1.6 percentage point

- Cumulative Winter 2015 bookings² at February 14^th, 2015 : flat at constant exchange rates with a flat capacity.

I. Business performance

• Business Volume Villages (corresponding to total sales regardless of village operating structure) amounted to 358 M€ versus 352 M€ in the prior year, up 1.6%. At constant exchange rates, business volume is flat driven by the growth in Americas. The decline of 11.1% observed in Asia is due to late Chinese New Year holidays (positioned this year on February versus on January in 2014).
  In Europe-Africa, the first quarter was impacted by a lack of snow during the early season and a customer disaffection for Senegal (fear of Ebola virus), Egypt and Morocco (the terrorist threat fear).

• Despite the opening of the 4-Trident village of Val Thorens Sensations, capacity is globally down 2.6% in the first quarter, due to the temporary closure of the village of Sinaï Bay (Egypt) until December 20, 2014 and to permanent closures of the 3-Trident villages of Val Thorens (France), El Gouna (Egypt), and the village of Belek (Turkey).
  The capacity of the most upscale villages (4 and 5-Trident villages) continued to rise to 82.3% of the total capacity, up 1.7 percentage point versus first quarter 2014.

• RevPab (Revenue per available bed) posted an increase at constant exchange rates of +2.5% at 115,4 € versus 112,5 € in the first quarter 2014 thanks to the improvement of the average price per hotel day at 174,2 € (+5,7%), an increase observed across all geographies.
• The weight of the customers staying in the most upscale villages (4 and 5-Trident villages) continued to rise by 1.6 percentage point. In the first quarter 2015, they count for 82.7% of the total number of customers.

II. First quarter highlights

• Market share gains in France within a very challenging context
  
  According to the latest data of SETO³, the ongoing Winter season confirms, once again, the sharp deterioration of the Individual French Market which recorded a decline of -15.2% in business volume on the departures from November to December 2014. In this very challenging environment, Club Med continues to beat the market by posting an increase of +0.6% over the same period. These market share gains reflect the strength of the unique position of Club Med.

• Club Med: the undisputed leader in the Mountain destination
  • Successful opening of Val Thorens Sensations:
    On December 5^th, Club Méditerranée inaugurated its 4-Trident village of Val Thorens Sensations, the 14^th ski resort located in France. This village, a true flagship in terms of comfort, design, technology and ambience, is an other symbol of the upscale strategy in the mountain destination. Since its opening, it has hosted 42 different nationalities and had an occupancy rate of nearly 90%.
    Moreover, the ski area of Val Thorens was rewarded, for the second consecutive year, as "Best ski area in the world” by the 2014 World Travel Awards.
  • Family Club Med ski resorts rewarded:
    The ski resorts of Peisey-Vallandry and Valmorel were respectively elected first and second best French destinations for families at the 13^th edition of the "Traveler's Choice Awards hotels 2015" organized by TripAdvisor. These awards confirm the success of the strategy of moving upmarket on the family segment.

III. Outlook

• Flat Winter 2015 bookings

As of February 14^th, 2015, cumulative Winter 2015 bookings, expressed in business volume at constant exchange rates, are flat versus Winter 2014. At the same time last year, bookings represented around 90% of the Winter season.

The growth of +7.8% recorded in Americas is mainly driven by the performance of Canada, Brazil and United States. Bookings in Asia at +0.5% are affected by temporary factors in some destinations (the village of Cherating in Malaysia impacted by air crashes and the village of Mauritius impacted by the fear of Ebola virus).

In Europe-Africa, bookings posted a limited decline of -1.4% in a very downbeat environment in some European tourism markets, especially the Individual French market where bookings are down 11% in business volume (SETO at end-December). Moreover, this market was particularly affected in January by a decrease in bookings to Morocco (-63% reported in business volume) according to Snav and Atout France data published on February 17^th.

IV. Post first-quarter-closing highlights

• Success of the tender offer initiated by Gaillon Invest II on Club Méditerranée shares and convertible bonds
  
  Club Méditerranée has noted the results of the tender offer initiated by Gaillon Invest II, published on February 12^th by the French Autorité des Marchés Financiers (AMF). The participation of Gaillon Invest II is brought to 92.81% of the capital and at least 91.57% of Club Méditerranée voting rights⁴.

• Negotiation of new funding contracts
  
  Following the success of the tender offer initiated by Gaillon Invest II, new funding contracts have been negociated to replace former contrats with a change in control trigger. It deals in particular with the syndicated loan, the German type of loan Schuldschein and the convertible bonds, replaced by the following funds which are subject to pledges on some shares, bank accounts and intra-group receivables:
  • A repayable loan over 6 years (€ 20 million);
  • A repayable loan with a maturity of 7 years ( € 30 million);
  • A revolving credit facility with a maturity of 6 years (€ 50 million);
  • A credit line dedicated to financing investments with a maturity of 6 years (€ 20 million):
  • Multiple credit lines for the financing or refinancing of the repayment of the nominal value of the convertible bonds (maximum € 23 million).
• Sale of CMAR securities
  
  The condition precedent relating to the sale by Club Méditerranée of its 22.5% interest in the CMAR property company that owns the 5-Trident village of La Plantation d'Albion located in Mauritius was lifted on December 30, 2014.

V. Shareholding

• Thresholds crossed during the first quarter

¹ Indicator that best represents the business : total sales regardless the operating structure
² Stated in terms of business volume at constant exchange rates (as at February 14^th, 2015)
³ SETO: Syndicat des Entreprises du Tour Operating (Union of Tour Operating Companies), data as of end of December 2014
⁴ According to the timetable published by the AMF, the offer initiated by Gaillon Invest II is reopened from February 20^th, 2015 to March 5^th, 2015