Despite the difficult economic environment, Hapimag, the leading company in the European market for holiday rights of residence, was able in 2008 to build on its success of previous years, achieving 5.0 per cent growth and a positive result. The operating income – in the 2008 annual financial accounts stated for the first time in Euro – totalled Euro 165.4 million (+ 5.1%) in 2008. Although the good result from
operating activities was affected by the negative financial result, which was due to currency developments, at Euro 0.5 million it was nevertheless positive. As a joint-stock company organised as a cooperative, Hapimag is not profit-oriented and strives to attain a maximum degree of self-financing.

In the Hapimag holiday resorts, sales increased by Euro 5.1 million against the previous year (+8.5%) to Euro 64.2 million. The 3,068,000 overnight stays at the 58 Hapimag resorts in 18 countries generated an average capacity utilisation rate last year of 78.5 per cent. The increase in operating costs in the holiday resorts was mainly due to structural reasons (e.g. increasing personnel costs), but also external factors such as the development of energy costs, which led to greater expenditure for heating, cleaning and laundry. A total of Euro 4.3 million was spent on maintenance and repair work in the holiday resorts in 2008.

The Sales division generated net revenue of Euro 35.2 million from the sale of shares and right of residence products, a year-on-year increase of 7.2 per cent. Despite the unfavourable currency situation, the key markets of Germany and Italy developed positively. Revenue from sales activities enabled living space to be increased moderately and the buy-back of shares to continue.

Thanks to the revenue from annual subscription charges, in the area of properties further measures for maintaining and improving the quality of living space were again financed from Hapimag’s own resources. In 2008, Euro 39.0 million was invested in renovating and extending the holiday resorts. Depreciation remained stable at Euro 32.0 million, equivalent to 51.1 per cent of revenue from annual subscription charges.

The high equity ratio (56.5%) and the company’s equity capital base (79.3%) confirm Hapimag’s solid structure. The free cash flow improved in 2008 from Euro -10.8 million to Euro -7.5 million. The reason for the negative free cash flow was, as in the previous year, the high level of investments of Euro 41.9 million (2007: Euro 53.2 million), for example in Hörnum, Binz, Dresden, Salzburg and Burnside Park, among others, and the buy-back of 8,268 shares totalling Euro 17.4 million.

At the end of February 2009 after a construction period of two years, the third holiday resort on Sylt/Germany was put into operation in Hörnum. With regard to the architecture, furnishings and equipment, as well as the offer, the resort provides an indication of Hapimag’s future direction.
In November 2008, the foundation stone was laid for the new city resort in the reconstructed heart of Dresden. The ‘British Hotel’, being rebuilt with its historical facade, will, after its probable completion in 2010 as the eleventh city resort, complement the exclusive offer of Hapimag city destinations.

After Hapimag had already taken new paths in the sector with the introduction of new General Terms and Conditions of Holiday Share_21, now providing for the buy-back of right-of-residence shares, the system will also undergo further modifications in 2009, for example the possibility of booking stays in all holiday resorts on a day-by-day basis. And in the medium term, Hapimag wants to satisfy its members not only with regard to their holiday wishes, but increasingly also by helping them to organise and achieve their own individual lifestyle.

Hapimag is number 1 in the European market for holiday rights of residence. The company was founded in 1963 as a Swiss public limited company based in the Canton of Zug in Baar and today has approximately 140,000 members. On purchasing shares, members can choose from among 58 holiday resorts with more than 5,400 apartments and hotel rooms rent-free based on a points system. The resorts are located in 18
countries in Europe, Africa and the USA. The company has around 1,700 employees worldwide.

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