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Finance & Insurance - In the world of leisure

Tony Clish

Sales & Marketing DirectorPark Holidays UK

Circa 3,500 parks – big & smallFew major groups – Haven, Parkdean, Park Holidays UK etcGroups own larger parks – 400+ pitchesSell holidays Sell caravan holiday homes (static caravans / lodges)Circa 60,000 sold PA new & usedAnnual owner site fees Operate bars, swimming pools, provide entertainment

Established 19851985 - 2006 - grew to 19 holiday parks‘BIMBO’ 2006 – Graphite Capital Private Equity2006 – 2008 – grew to 23 holiday parksSecondary MBO 2013 – Caledonia Investments2013 – £21M EBITDA (2006 £10M)

Thing’s ain’t what they used to be!

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We sell circa 80,000 holidays a year…….

-Price £69 - £1,000-No finance-No external insurance-Sell ‘cancellation protection’ – self insured risk-£10 short break / £20 week-15% penetration-Cancellation cover - sales falling in later booking pattern

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We sell circa 80,000 holidays a year…….

-Price £69 - £1,000-No finance-No external insurance-Sell ‘cancellation protection’ – sell insured risk-£10 short break / £20 week-15% penetration-Sales falling in later booking patternNOT VERY

EXCITING!!!!!!

Selling Caravan Holiday Homes…Spot the difference………

- High volume- Often low margin- Selling location not important- They move (or should do!)- Cars highly branded- Glass’s guide values

- Low volume – limited supply - High margin- Location crucial- They don’t move-Minimal brand awareness- Glass’s guide values- Hybrid of car / house market

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Park Holidays UK sell circa 2,000 caravans a year…

-Price £6900 - £200,000-Finance penetration 42%-Average balance £20,000-5 – 10 year term-5.5% - 7% flat-10% + deposit

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We sell circa 2,000 caravans a year…….

-Price £6900 - £200,000-Finance penetration 42%-Average balance £20,000-5 – 10 year term (20 year pitch licence)-5.5% - 7% flat-10% + deposit

-ACCEPTANCE RATE CIRCA 50%-A BIG OPPORTUNITY TO GROW!!!

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Our customers…….-Typically aged 50 – 70-Live max 2 hours drive from park-Multi- generation buying decision / lifestyle-Have holidayed on the park in past – like location-Flexible retirement / lifestyle-C1 / C2 / D-Blue collar workers / self employed etc-Niche locations – each park different

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The Caravan Finance Market …….- Defined as Holiday Homes, Touring Caravans & Motorhomes- In total £300M - £325M- Max advance linked to Glass’s Guide – typically 185%- Term 5 – 10 years- Low penetration 20%- Bad debt provision 1.5% - 1.8% typical- Black Horse 75-80% market share- Other lenders - Barclays / Close Consumer Finance/ Santander/ Hitachi / Ratesetter / Glenside

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Caravan Holiday Home Finance – -An opportunity for new lenders?

-Static caravans are ‘static’!! Don’t disappear!-We offer risk protection – Repurchase Undertakings-Lending linked to caravan value Glass’s Guide etc-Park Holidays UK strong financial covenant – low gearing / profitable

- GET IN TOUCH TO LEARN MORE!!