Fosun : après le Club Med, le géant chinois annonce son alliance avec Thomas Cook

Fosun : après le Club Med, le géant chinois annonce son alliance avec Thomas Cook

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Strategic Partnership between Thomas Cook & Fosun International Investor and analyst presentation 6 March 2015 A strategic partnership for profitable growth Objectives Opportunities Investment • • • • • • • • Build international cooperation between Thomas Cook and Fosun “uppoƌt Thoŵas Cook’s edžistiŶg pƌofitaďle gƌoǁth stƌategLJ to ŵutual ďeŶefit Create new growth opportunities Establish hotel investment partnership to support development of Concept hotels Collaborate withFosuŶ’sother tourism investments (e.g. in France) Partner with Fosun to capture value from the fast growing Chinese tourism market Fosun to invest £91.8 million to acquire new shares representing 5% of Thomas Cook, and intends to purchase up to an additional 5% in the open market over time PƌoĐeeds suppoƌt gƌoǁth iŶitiatiǀes aŶd fuƌtheƌ stƌeŶgtheŶ Thoŵas Cook’s fiŶaŶĐial position 2 Fosun International • Leading investment group in China • Founded in 1992 and headquartered in Shanghai • Listed on the Hong Kong Stock Exchange in 2007; market cap.

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Published 06 March 2015
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Strategic Partnership between Thomas Cook & Fosun International Investor and analyst presentation
6 March 2015
A strategic partnership for profitable growth
Objectives
Opportunities
Investment
Build international cooperation between Thomas Cook and Fosun “uppoƌt Thoŵas Cook’s edžistiŶg pƌofitaďle gƌoǁth stƌategLJ to ŵutual ďeŶefitCreate new growth opportunities
Establish hotel investment partnership to support development of Concept hotels Collaborate withFosuŶ’sother tourism investments (e.g. in France) Partner with Fosun to capture value from the fast growing Chinese tourism market
Fosun to invest £91.8 million to acquire new shares representing 5% of Thomas Cook, and intends to purchase up to an additional 5% in the open market over time PƌoĐeeds suppoƌt gƌoǁth iŶitiatiǀes aŶd fuƌtheƌ stƌeŶgtheŶ Thoŵas Cook’s fiŶaŶĐial position
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Fosun International
Leading investment group in China
Founded in 1992 and headquartered in Shanghai
Listed on the Hong Kong Stock Exchange in 2007; market cap. of £7 billion
Fouƌ ͞gƌoǁth eŶgiŶes͟ ofIndustrial Operations, Insurance, InvestmentsandAsset Management
Total assets distribution
Industrial Operations
Insurance
Investment
͞CoŵďiŶiŶg ChiŶa’s Growth MoŵeŶtuŵ with Gloďal ResourĐes͟
Fosun took stake in 2010, and acquired the company in February 2015 Rapid growth in ChinaŶoǁ Cluď Med’s second largest market
CIT“ is ChiŶa’s laƌgest tƌaǀel ageŶĐLJ, #ϭ iŶ inbound and outbound markets Fosun is CITS s largest private shareholder
In partnership to develop an Atlantis resort in Hainan province
Source: Fosun 2014 interim results. Note: As ǁell as the tƌaǀel aŶd leisuƌe seĐtoƌ, FosuŶ’s IŶǀestŵeŶts diǀisioŶ Đoŵpƌises holdiŶgs iŶ the ƌetail, ŵedia, manufacturing and finance sectors. Total assets of RMB 313 billion as at 30 June 2014.
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The vision for a hotel investment partnership
Thoŵas Cook’s existiŶg Concept hotel portfolio
220 hotels 150 added in last two years 16 destination countries 5 brands
Exclusive Differentiated Higher margin
Accelerate development through partnership
Partnership model
Benefits to Thomas Cook
Establish a mutually-beneficial hotel investment fund to support our concept hotels Fosun provides investment and development resources Thomas Cook provides hotel management expertise and sales channels
Supports improvement and expansion of Concept hotel portfolio Consolidated hotel ownership Tighter management control
More higher margin exclusive product More funds for further hotel investment
4
Opportunity to collaborate with other travel and leisure ďusiŶesses iŶ FosuŶ’s iŶǀestŵeŶt poƌtfolio
Leverage Thomas Cook’s ƌetail distribution network (on and offline) Other possible procurement and product efficiencies Expand offer for Chinese guests into Russia though Intourist Expand use of CITS as inbound operator foƌ Thoŵas Cook’s clients visiting China
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Opportunity to create value from the fast-growing Chinese tourism market over the medium term
China domestic
Offer a leisure hotel brand for Chinese clients on domestic holidays Jointly develop concept hotel brands tailored to the Chinese market
Build up iŶĐoŵiŶg pƌoduĐt foƌ ChiŶese guests ĐoŵiŶg to Euƌope, ďased oŶ Thoŵas Cook’s China existing platform in Spain outbound Explore opportunities together with Fosun for a China outbound tour operating JV CoŵďiŶe Thoŵas Cook’s deep experieŶĐe iŶ leisure traǀel aŶd ďraŶd heritage ǁith FosuŶ’s loĐalmarket knowledge, operational resources and real estate development skills & competencies
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Summary: benefits of the strategic partnership
New long-term strategic investor
Accelerate the execution of our existing strategy and create new growth potential
New investment funds growth initiatives and further strengthens our financial position
Partner of choice: Fosun has a long track record of successful investments
͞AŶ iŶterŶatioŶal Đo-operation for further profitaďle groǁth͟
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Q&A
8 8
Appendix
New share placing mechanics
Capital increase
ϳϯ.ϭŵ Ŷeǁ shaƌes eƋuiǀaleŶt to ϱ.Ϭ% of Thoŵas Cook’s edžistiŶg shaƌe Đapital ǁill ďe issued, ƌepƌeseŶtiŶg ϰ.ϴ% of Thoŵas Cook’s edžpaŶded shaƌe ĐapitalThe new shares will be issued and subscribed by Fosun via a private placement
Subscription priceNewly issued shares will be subscribed for by Fosun at a price of 125.59p th Equivalent to 30 day volume weighted average price as of 5 March 2015 Generates gross proceeds of £91.8m for Thomas Cook
Fosun holding
IŵŵediatelLJ afteƌ the plaĐiŶg, FosuŶ ǁill hold ϰ.ϴ% of TC’s issued shaƌe ĐapitalFosun intends to purchase further shares in the open market, in order to increase its stake in Thomas Cook to c. 10% over time
Foreign ownershipTo facilitate Fosun's investment, the threshold for non-EEA ownership of Thomas Cook will be raised to 45% New shares will be subscribed for by Fidelidade-Companhia de Seguros, S.A., a suďsidiaƌLJ of FosuŶ aŶd Poƌtugal’s laƌgest iŶsuƌaŶĐe ĐoŵpaŶLJ
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Chinese tourism market opportunity
ChiŶa is the ǁoƌld’s laƌgest outďouŶd ŵaƌket ǁith a total expenditure of US$129bn in 2013 Total outbound expenditure grew by 17% in first three quarters of 2014 The total number of trips abroad from China was estimated to be 107m in 2014, up 20% year-on-year Domestic tourism growth of 10% p.a. over the last decadenow over 4% of GDP Chinese outbound tourism Outbound tourists (million) 120 107 98 100 660 4 2 830 58 6 4 802 700 48 6 4 2 0 5738 6 604 2 480 4628 6 414 2 0 18 406 4 2 0 8 6 4 2 20 2007 2008 2009 2010 2011 2012 2013 2014
Chinese domestic tourism Domestic trips (total distance)
1.4
1.5
1.7
1.9
2.2
2.5
0.5 2007 2008 2009 2010 2011 2012 Chinese outbound tourism Key European countries visited Outbound tourists (thds - 9M 2014)
619
497
437
“ouƌĐe: Tƌaǀel ChiŶa Guide, ChiŶa IŶďouŶd aŶd OutďouŶd Touƌisŵ data. EuƌoŵoŶitoƌ ChiŶa ͞DoŵestiĐ Touƌisŵ ďLJ DestiŶatioŶ͟. ͞EsseŶtial ChiŶa Tƌaǀel TƌeŶds ϮϬϭϮ͟.Note: Euromonitor data measures total distance travelled on domestic tourist trips.
398
2.7
2013
354
3.0
2014
240
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