ROOM FOR GROWTH
Andreas Veilstrup Andersen, CEO & President
Liseberg AB
20 September 2016
1923 2021
WHY EXPAND?
WHY EXPAND?
THE TOURISTS PAY A SUBSTANTIAL PART OF THE LOCAL VISITOR’S TICKETS
The incoming market counts for 40% of the visitation, but at the same time for approximately 60% of revenues.
THE LISEBERG PRODUCT IS EXPENSIVE TO DELIVER
Considerable parts of Liseberg’s product are not profitable, but is part of Liseberg’sheritage. To finance Liseberg’s cultural offerings, music performances, social programmes and charity activities, Liseberg needs a stable, financial foundation.
LISEBERG SHOULD PROVIDE A VALUE-FOR-MONEY PRODUCT
Liseberg sees limited possibilities for price increases in forecasts, which will put profitability under pressure.
LISEBERG 2015 – EMPLOYMENT 1 946 (FTEs)
- Operational Impact 1 172 FTEs
- Construction Impact 774 FTEs
LISEBERG 2015 – ECONOMIC IMPACT 2 764 MKR
- Operational Impact 1 349 mkr
- Construction Impact 310 mkr
- Tourism Impact 1 105 mkr
LISEBERG 2015 – 950 000 GUEST NIGHTS
- 23% of destination total
ECONOMIC IMPACT
FIVE YEAR SUMMARY
2015 2014 2013 2012 2011
Turnover & Profit
Total Revenue MSEK 1 139 1 096 977 974 962
Profit before Tax MSEK 122 119 53 74 78
Financial SItuation
Total Assets MSEK 1 565 1 558 1 529 1 082 886
Equity MSEK 914 828 750 715 658
Solidity % 58 53 49 69 74
Cashflow MSEK 211 209 144 147 140
Investment MSEK 82 278 521 135 78
Economic Impact MSEK 2 800 2 750 2 500 2 450 2 550
Revenues in Europe 2014; €4,9 billions …
…. of which 16% is attributed to hotels.
Total investments in 2014; €587 million …
… of which a considerable amount is allocated to accommodation …
THE EUROPEAN THEME PARK MARKET
PARK COUNTRY GUESTS KEYS COMMENTS
Disneyland Paris France 10 300 000 5 700 Expands with Village Nature (1 730 keys) in 2016
Europa-Park Germany 5 500 000 950 Expands with two hotels (500 keys) i 2017/18
TIVOLI Denmark 4 700 000 708 Expanded with 288 keys in 2015
de Efteling Netherlands 4 700 000 450 Expanded with100 keys 2016
Disney Studios France 4 400 000 … …
Port Aventura Spain 3 600 000 2 250 Expanded with 250 keys in 2016
Liseberg Sweden 3 100 000 180 + 110 keys on campsites
Gardaland Italy 2 900 000 245 …
Alton Towers UK 2 500 000 540Expanded with 120 keys in 2016, expands with 75 keys in
2017
Legoland Windsor UK 2 300 000 160
TOP 10 EUROPEAN PARKS
THE PROCESS
June 2014
September 2014
October 2014
November 2014
December 2014
January 2015
September 2015
November 2015
September 2016
Market Study
Risk Analysis
Cost Analysis
Feasibility Study
Legal Analysis
Concept Operational Analysis
Schematic Programme Programme
Idea
Hypothesis
Market Study
Test
Concept
Design
Financial
Modelling
Business Plan
Feasibility
DD
Costing
Build
Procurement
Opening
Operation
PROCESS
Idea
Hypothesis
Market Study
Test
Concept
Design
Financial
Modelling
Business Plan
Feasibility
DD
Costing
Build
Procurement
Opening
Operation
33 ALTERNATIVES → 8 HYPOTHESIS → 2 SCENARIOS
A FUNNEL PROCESS
Idea
Hypothesis
Market Study
Test
Concept
Design
Financial
Modelling
Business Plan
Feasibility
DD
Costing
Build
Procurement
Opening
Operation
33 ALTERNATIVES IDENTIFIED
ALTERNATIVES
Theme Park-second gateOutdoor WaterparkIndoor WaterparkWaterpark HotelSafari ParkLegoland/children's parkPuy du Fou (historic) parkBoardwalk type attractionIndoor FECOutdoor FECAquariumButterfly / Bird/ Small Animal Attraction
Full-scale BiodomeEco Pavilion with adventure activitiesPlanetariumMirror Maze/Specialty AttractionPassage of terror/DungeonFamily HotelGlampingConference HotelRDE zoneOutlet ShoppingGo Karts
Adventure GolfArenaOutdoor AmphitheatreLiving History VillageViewing towers/wheelsBranded Permanent live show (e.g. CdS)Dinner TheatreExtreme Park- ropes/climbing etcIndoor Ski/snowCluster w/ bowling / adventure golf / cinema /dining
ALTERNATIVES
ALTERNATIVES MATRIX
ALTERNATIVES POINTS
1. Indoor water park with hotel 338
2. Themed onsite hotel 324
2. Indoor FEC 324
4. Glamping 319
5. Outdoor FEC 310
6. Outdoor water park 290
…
10. Indoor waterpark 285
…
33. Arena 165
BEST PERFORMING ALTERNATIVES
Idea
Hypothesis
Market Study
Test
Concept
Design
Financial
Modelling
Business Plan
Feasibility
DD
Costing
Build
Procurement
Opening
Operation
8 HYPOTHESIS TESTED
HYPOTHESIS
Hypothesis
Liseberg
Owner
Partners
What is best for Liseberg?
• Market position
• ROI
• …
What is best for the owner?
• FTE’s
• Dynamic impacts
• …
What is best for the tourism?
• Hotel nights
• Tourism impacts
• …
Hotel
Water Park
+3,5h park
+2,5h park + hotel
FEC
FEC + hotelHotel & Water Park
Idea
Hypothesis
Market Study
Test
Concept
Design
Financial
Modelling
Business Plan
Feasibility
DD
Costing
Build
Procurement
Opening
Operation
2 SCENARIOS FORMULATED
SCENARIOS
Liseberg
- no hotel
Scenario 1
Liseberg
- with hotel
Scenario 2
+ water park
+ park expansion
+ FEC
SCENARIOS
Idea
Hypothesis
Market Study
Test
Concept
Design
Financial
Modelling
Business Plan
Feasibility
DD
Costing
Build
Procurement
Opening
Operation
HOTEL + WATER PARK
SCENARIO 2
• Hotel + Water Park alternative;
• + 600 000 guests (500 +100)
• + 400 million SEK revenue
• + 300 FTEs
• + 500 million SEK tourism impact
• + 185 000 guest nights (+55 000 for Liseberg Hotel)
• Total investment 1,9 billion SEK, financed 100% by Liseberg
ESTIMATED IMPACT
THE PROGRAM
Ägardialog
WHAT IF WE DON’T
EXPAND?
28%
34%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecLiseberg incl Christmas Liseberg excl Christmas European Outdoor Parks
SEASONALITY
5,4%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
0
10
20
30
40
50
60
70
80
90
100
Bu2015
Bu2016
ÅR2017
ÅR2018
Bu2019
Bu2020
Bu2021
Bu2022
Bu2023
Bu2024
Bu2025
Rörelseresultat (efter avskriv.), Mkr Rörelsemarginal
PROFIT MARGIN
THANK YOU
Room for growth: Lodging and
resort development
in the attraction business
Søren Kragelund, CEO
Fårup Sommerland
September 20th 2016
Fårup Sommerland(in northern Jutland, Denmark)
VIDEO NON AVAILABLE
3
Growth-curve
4
Guest-satisfaction: 99 %NPS-score: 82%
A dream coming true…Hotel Fårup in Fårup Sommerland
• Opened on May 4th, 2016• Investment 51 million DKK (7 million Euro)• Integrated part of the park• 4 star hotel• 51 rooms
• Size of the hotel: 3.300 m2
• Four types of rooms + new suites in 2017• Standard rooms: 24 m2, large rooms: 32 m2
• Prices 4-persons rooms: Low-season: 173 EUR, Mid-season: 227 EUR High-season: 280 EUR (without twodays-tickets, price 45 EUR)
• Hotel-guests have 30 min. alone in the park before opening• Two seatings in the restaurant• Rooms and interior themed in genuine “Fårup wood-style”
The business case Hotel Fårup
• The hotel is open when the park is open
• Open approximately 1/3 of the year
• The hotel cannot ”stand alone”
• Build for shortterm holidays (1-2 nights stay)
• Hotel Fårup – also for conferences and business-meetings
Guests, Hotel Fårup, geographically
3%
Denmark, outside local area Norway Sweden Others Locals
1 %18 %
20 %
58 %
Country Amount of guests, May-August
Great Britain 54
Switzerland 12
Greenland 10
India 10
Belgium 8
Italy 6
Spain 5
Austria 4
Finland 4
A very positive start for Hotel Fårup
• Already 5 ”stars” on Trip Advisor
• Guests per room 3,6 (budget: 3)
• Guests in evening-buffet: 66% (budget: 40%)
• Positive occupancy-rates: 66,5 % (budget: 65 %)
• Length of stay: 1,4 days (budget: 1,4)
• Rooms rented until 31/7: 2.428 rooms (budget: 2.056)
• Guests until 31/7: 8.255 guests (budget: 6.168)
• 8.255 unique guests, equals 20.637 visits in the park (until 31/7)
• Average rental-price: Index 97 (budget: Index 100)
• A new ”paradigm” – open 24 hours – never closed
Thank you for listening
Questions?
17