2. CLUB méditerranée Group is a leader franchise in
leisure villages market.
Its strategy is based on modes of developement that
require low capital investment and offer flexible,
upscale capacity.

3. The owner and operator of a village delegates its
management to ClubMed.
The capital expenditures and operating and
maintanence costs of the village are the
responsibility of the owner.
In some cases Club Med could decide to make an
investment in order to turn the hotel into a Club
Méditerranée Resort.

4. • Club Méditerranée charges a management
fee calculated as a percentage of revenue and
a profit-sharing fee calculated as a
percentage of gross operating profit.
• Club Med also charges a sales and marketing
commission.
• The advantage of these contracts is that they
are flexible since remuneration is based on a
percentage of revenues related to the fill
rate.

5. Financial Income statement is fundamental to
understand the difference between revenues and
expenses during the fiscal year.

6. CLUB MED - CONSOLIDATED STATEMENT OF INCOME 2008 % 2009 % 2010 %
Revenue - Villages (Net Sales) 1484 100,00% 1344 100,00% 1336 100,00%
Total income from ordinary activities 1492 100,54% 1352 100,60% 1349 100,97%
EBITDAR Villages 248 16,7% 254 18,9% 264 19,8%
EBITDA Villages 100 6,7% 100 7,4% 107 8,0%
Operating income- Villages 35 2,4% 36 2,7% 42 3,1%
Operating income -Management of assets -8 -0,5% -29 -2,2% -14 -1,0%
Other operating income and expense -15 -1,0% -27 -2,0% -15 -1,1%
Operating income (EBIT) 12 0,8% -20 -1,5% 13 1,0%
Finance cost, net -33 -2,2% -23 -1,7% -22 -1,6%
Income (loss) before tax -21 -1,4% -43 -3,2% -9 -0,7%
Net income from continuing operations -31 -2,1% -43 -3,2% -14 -1,0%
Net income(loss) 2 0,1% -53 -3,9% -14 -1,0%

7. BALANCE SHEET IS ABOUT EVALUATING INVESTMENTS OF A FIRM
• WE HAVE HIGH QUICK ASSETS LEVEL WITH AN INTENSIVE FLOW
CASH AND LOW CONCENTRATION OF INVENTORIES.
• NON-CURRENT ASSETS ARE COMPOSED MAINLY OF PROPERTY .

8. LIABILITY AND EQUITY SECTION ALLOWS TO EVALUATE
THE FINANCIAL SOURCES OF THE FIRM AND FINANCIAL RISKS TAKEN.
• EQUITY OF CLUB MED CONSTITUTES 1/3 OF TOTAL LIABILITIES.
• THE FINANCIAL AUTONOMY OF THE GROUP IS SECURED BY
TOTAL LIABILITIES OF FINANCIAL AND TRADE NATURE

9. • Financial ratios are so important because they quantify
many aspects of a business and they are part of
financial statement analysis.
• A ratio is just one number over another number so, in
order to judge if it is positive or negative, we have to
compare it with the company’s own ratios over time to
verify trends (and with other companies).
• Significant changes in the financial ratios during a
period provide information to investors and managers
for making decisions related to a firm.

10. 1. LIQUIDITY RATIO (the ability of a firm to meet its short-
term obligations):
• QUICK RATIO (QA/CL)
• CURRENT RATIO (CA/CL)

11. 2. SOLVENCY RATIOS (the ability of the firm to meet long-term
obligations)
•DEBT/EQUITY RATIO (the ability of a firm to be solvent)
•EQUITY RATIO (how many euros of T. A. are supported by each

12. PRODUCTIVITY 2008 2009 2010
ROA N.A. -1,31% 0,92%
ROE N.A. -10,73% -2,85%
TAT N.A. 0,8854 0,9588
ROS 0,80% -1,48% 0,96%
• ROA indicates the product of operative margin and the
sales to total asset ratio.
• ROE measures the company’s profitability.
• TAT measures the efficency of assets in producing sales.
• ROS indicates the company’s abilities to earn operative
income from sales.

13. INCOME STATEMENT:
•Net loss of 53 millions in 2009 and 14 millions in 2010
•Reduction of Revenues from 2008 to 2010
BALANCE SHEET:
•71% of Long Term assets, quite unusual for a franchise.
•Debts represents 65% of Total Assets, as shown by EquityDebt
Ratio
RATIO:
•Solvency ratios are always is superior to 1, so the firm seems
to be unsolvent.
•Bad results in 2009 Productivity, partially recovered in 2010.
•Negative ROE makes the firm unappealing for new SH

14. INCOME STATEMENT:
•Good work on EBIT  In 2010 EBIT is again positive after the
fall of 2009.
BALANCE SHEET
•Good management of payments Only 13% out of 40% are
real Current Liabilities.
RATIO
• The average 0,5 in Liquidity is not so bad because it takes into
account also the «fake» current liabilities.
•Good management of Investments Very good TAT for the
sector.
•Good work on EBIT ROA and ROS recovered.

15. • IMPROVE CUSTOMERS NUMBER AND RETENTION
-offer special prices for packages during the low season
-creation of fidelity programs
-offer customizable holiday packages
-offer long stay packages at a discounted price
• REDUCE OR OUTSOURCE COSTLY ACTIVITIES
-reduce costs related to new buildings and structure mantainance.
-sell off unprofitable structures.