Edreams Odigeo · BME:EDR
Edreams Odigeo — Q4 2021 Earnings Presentation
42 slides from Edreams Odigeo's earnings presentation, May 25, 2023
Slide 1: eDreams ODIGEO
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Slide 2: Disclaimer
Disclaimer 1 This presentation is to be read as an introduction to the audited consolidated financial statements of the Group and contains key information presented in a concise manner on the Group and its financial condition. The information contained in this presentations is extracted from the aud
Slide 3: Overview
F 7 Q . . 1. Overvie FY21 was hea The first quarter o FY eDO will be a clear winner after Wecrisig “an Going forward, wi 0 reinventtfavel dnd tA Sr isto = Closing remarks Appendix
Slide 4: After a difficult year, the market is coming back
1 AFTER A DIFFICULT YEAR, THE MARKET IS COMING BACK. EDREAMS ODIGEO IS COMING BACK STRONGER: GAINING MARKET SHARE AND OVER 1M PRIME MEMBERS FY21 WAS HEAVILY AFFECTED BY TRAVEL RESTRICTIONS COVID-19 led to 79% Revenue Margin decrease Adjusted EBITDA margin well managed due to a highly adaptable b
Slide 5: FY21 was heavily affected by travel restrictions
2. FY21 was heavily affected by travel restrictions
Slide 6: Income Statement Highlights FY21
2 INCOME STATEMENT COVID-19 led to 79% Revenue Margin decrease Highlights FY21 VAR VAR 1. Revenue Margin decreased by 79%, to €111.1 million, mainly due 4Q 4Q 12M 12M to the volume effect (-70% decrease in Bookings) and lower (IN EUROS MILLION) FY21 FY21 FY21 VS FY20 FY20 FY21 VS FY20 FY20 RM/Bookin
Slide 7: Cash Flow Highlights FY21
2 CASH FLOW Highlights FY21 (IN EUROS MILLION) 4Q 4Q 12M 12M 1. Net cash from operating activities improved by €101.8 million. FY21 FY20 FY21 FY20 mainly reflecting: Working capital inflow of €65.0 was driven by better volume in the ADJUSTED EBITDA (*) -10.9 28.3 -38.2 115.1 last two weeks of March
Slide 8: Adjusted EBITDA well managed due to highly adaptable business model
ADJUSTED EBITDA WELL MANAGED DUE TO A HIGHLY ADAPTABLE BUSINESS 2 MODEL SUPPLEMENTARY MEASURES IN FC AND CAPEX ADDED EXTRA ADAPTABILITY TO OUR BUSINESS MODEL OUR HIGHLY VARIABLE BASED COST STRUCTURE ENABLES US TO QUICKLY ADAPT TO SOFTER DEMAND MEASURES in fixed costs and CAPEX resulted in: -70% SUCC
Slide 9: Diversification contributed to adaptability
ADJUSTED EBITDA WELL MANAGED DUE TO A HIGHLY ADAPTABLE BUSINESS 2 MODEL DIVERSIFICATION CONTRIBUTED TO ADAPTABILITY +11 ppt +3 ppt International (from 26% to 37% of Expanded product (from 85% to 88%) Expansion our total bookings) diversification +4 ppt 56% Increased And mobile diversification (from
Slide 10: The liquidity of eDO was never at risk
THE LIQUIDITY OF eDO WAS NEVER AT RISK 2 LIQUIDITY HAS REMAINED STABLE WITH A STRONG LIQUIDITY POSITION OF €106 MILLION AT THE END OF MARCH, AND AN AVERAGE OF €116 MILLION SINCE SEPTEMBER 2020 DESPITE THE TEMPORARY SOFTENING OF TRADING WE ARE THE ONLY OTA THAT DID NOT REQUIRE A CAPITAL OR DEBT RAISE
Slide 11: The first quarter of FY22 shows clear signs of market recovery
3. The first quarter of FY22 shows clear signs of market recovery
Slide 12: US key data points supporting a strong travel recovery
US KEY DATA POINTS SUPPORTING A STRONG TRAVEL RECOVERY 3 As more people are vaccinated, travel activity tends to picks up AIR TRAFFIC CONTINUES TO IMPROVE AS DAILY TSA US CORRELATION OF VACCINES VS BOOKINS SHOWS SCREENINGS REACHED 12% BELOW 2019 LEVELS ON TRAVEL ACTIVITY PICKE UP AS MORE PEOPLE ARE
Slide 13: Europe expected to follow suit quickly due to vaccinations
EUROPE EXPECTED TO FOLLOW SUIT QUICKLY DUE TO VACCINATIONS 3 OUR TOP EUROPEAN COUNTRIES HAVE ALREADY IN OUR CORE COUNTRIES 36% OF THE POPULATION SURPASSED THE SPEED OF VACCINATION OF THE HAS RECEIVED THEIR FIRST DOSES OF A VACCINE, A UK AND US NUMBER THAT HAS TRIPLED SINCE MARCH (*) Weekly COVID-19
Slide 14: Online trend has been hugely accelerated by COVID-19
ONLINE TREND HAS BEEN HUGELY ACCELERATED BY COVID-19 3 eDO leading the way – Mobile even more important ONLINE PENETRATION ACCELERATING - THE ONLINE WE CONTINUE TO LEAD THE TRAVEL INDUSTRY IN TRAVEL PENETRATION ADVANCED 3 PPT IN 2020 MOBILE INNOVATION 59% 58% 56% 56% 55% 55% 53% 52% 2020 2021 2022 2
Slide 15: Our own numbers already show strong improvements
OUR OWN NUMBERS ALREADY SHOW STRONG IMPROVEMENTS 3 KEY HIGHLIGHTS ON CURRENT TRADING MEANINGFUL IMPROVEMENTS IN YEAR-ON-YEAR TRADING AS VACINNE PROGRAMS ACCELERATE IN OUR ● Rising COVID-19 cases in the autumn and CORE MARKETS winter caused further travel restrictions to be eDO Bookings growth vs 201
Slide 16: In great shape: strong pent-up demand
IN GREAT SHAPE…EVIDENCED BY OUR OWN STRONG PENT-UP DEMAND 3 We have seen that leisure travel wants to return as soon as practical OUR STRONG PEN-UP DEMAND INDICATED BY SUBSTANTIAL INCREASE IN SEARCHES FOR LONG DATED DEPARTURES Searches – Advance (+61 days) The increase in searches for 61+ days in ad
Slide 17: Changes in sales mix show recovery
IN GREAT SHAPE…EVIDENCED BY OUR OWN STRONG PENT-UP DEMAND 3 We have seen that leisure travel wants to return as soon as practical MOST RECENTLY, CHANGES IN SALES MIX SHOW ALSO SOME RECOVERY TOWARD PRE-COVID LEVELS, POSITIVE FOR EDO Changes in Sales Mix – Advance (+31 days) Changes in Sales Mix – 2 o
Slide 18: eDO will be a clear winner after the crisis
4. eDO will be a clear winner after the crisis!
Slide 19: We are structurally well positioned
WE ARE STRUCTURALLY WELL POSITIONED 4 IN GREAT SHAPE AND PRIMED TO WIN IN A POST COVID-19 WORLD 19
Slide 20: We have unrivalled scale advantage
WE HAVE UNRIVALLED SCALE ADVANTAGE 4 eDO is the scale player and leader in flight revenues in Europe, and second largest worldwide eDO UNRIVALLED SCALE WITH 2.3X MORE POST COVID-19 EDO BECAME 2ND EUROPEAN FLIGHT REVENUE THAN THE #2 PLAYER LARGEST PLAYER IN FLIGHT EUROPEAN FLIGHT REVENUE ESTIMATED, L
Slide 21: We continue to outperform the market
WE CONTINUE TO OUTPERFORM THE MARKET 4 YEAR-ON-YEAR TRADING AHEAD OF AIRLINE INDUSTRY AND EXPANDING eDO vs IATA +9pp +15pp +14pp +11pp +21pp -62% -65% -62% -70% -77% -79% -81% -87% -83% -97% 1Q FY21 2Q FY21 3Q FY21 4Q FY21 MARCH 2021 eDO Total IATA Europe Source: IATA Economics & Company Data (*) IA
Slide 22: We continue to gain market share
WE CONTINUE TO GAIN MARKET SHARE 4 Our market share in Europe grew by 6% points OUR MARKET SHARE IN EUROPE HAS MOVED FROM 32 TO 37% eDO MARKET SHARE EVOLUTION IN THE EUROPEAN OTA MARKET Gross Bookings Flights 37.3% +6% +1% +2% 31.0% 31.6% 28.8% 2017 2018 2019 2020 Source: Company data and Phocuswrig
Slide 23: Extending our offer and expanding our footprint
EXTENDING OUR OFFER AND EXPANDING OUR FOOTPRINT 4 On top, through automation cost per booking is down Product Geography Customer Segments Prime flights (France, Spain, Prime: 2017 (Spain, France), Service automation and Italy, Germany, UK, US 2018 (Italy), 2019 (Germany), omni channel and Portugal)
Slide 24: Prime has now 1 million members and 39% of flight bookings
PRIME HAS NOW 1 MILLION MEMBERS AND 39% OF FLIGHT BOOKINGS 2 PRIME SUBSCRIPTION PROGRAM PROVIDES A FIXED REVENUE STREAM 60% 1,009 1000 876 50% 800 758 38% 39% ‘000 Prime Members 36% 40% 664 Prime Share (%) 600 556 564 490 26% 30% 389 400 18% 275 +2% 20% 200 165 9% 8% 6% 7% 10% 79 13 25 38 3 5% 0 0%
Slide 25: Innovation – Prime is ahead of its time
INNOVATION – PRIME IS AHEAD OF ITS TIME 4 Over 1 million Prime subscribers Launch of Prime in UK, REACHED US & 1M Portugal Hotels launched in MEMBERS Italy, Spain, Launch of Hotels Germany, US Launch of 1st Launch of Spain and launched & Portugal pilot in France Prime in Italy Germany in France COVI
Slide 26: Going forward, we want to reinvent travel and travel provision
5. Going forward, we want to reinvent travel and travel provision
Slide 27: eDO Strategy – Strategic Priorities
eDO STRATEGY – STRATEGIC PRIORITIES 5 Strategy VISION: TO REINVENT TRAVEL AND TRAVEL PROVISION Priorities Goals Vision #1 Continue to grow To have a largely Prime membership subscription based program relationship with customers in which Create a leading #2 we cover their edge transportation travel
Slide 28: #1 Continue to grow Prime membership program
#1 CONTINUE TO GROW PRIME MEMBERSHIP PROGRAM 5 WHAT’S COMING NEXT Product Geography Customer Segments Continue to test and refine Continue to test and Continue to test and develop core proposition. Iterate rollout product across more segmented propositions around duration & price point geographies a
Slide 29: #2 Connectivity – create a leading edge transportation platform
#2 CONNECTIVITY - CREATE A LEADING EDGE TRANSPORTATION PLATFORM 5 THE 4 PILLARS OF OUR STRATEGY TO DRIVE OUR BUSINESS AND OFFER: Connectivity Customer • Instant search results • Automated customer Experience services processes • Seamless booking across Platform providers modernization • Secure exist
Slide 30: #3 Customer centric retailing platform driving diversification
#3 CUSTOMER CENTRIC RETAILING PLATFORM DRIVING DIVERSIFICATION 5 Be the one-stop travel provider for our customers Our Vision is to take the Retail experience through the entirety of the Trip The Right Top of Mind The Go To Be with our Product at for our Travel Customer the Right Customers Retail Ev
Slide 31: #4 Customer service automation – omni channel customer service
#4 CUSTOMER SERVICE AUTOMATION - OMNI CHANNEL CUSTOMER SERVICE 5 WHATS COMING NEXT "To become the first OTA in the world IMPROVED to offer a truly digital Customer PERCEPTION Service Experience" OPTIMISED OPERATIONS "We will reduce the cost of serving our customers by 45% from pre-pandemic levels. 7
Slide 32: Closing Remarks
" Overview at. She, eDO will to be aclear winner after the crisis The first quarter of FY22 shows clear signs eDO will be a clear winner after the crisis” se Closing Remarks Appendix
Slide 33: In Summary
6 IN SUMMARY Our business is strong, and we are positioned to be a winner from the crisis. The travel industry is a €1 Trillion market, one of the largest industries in the world. We have weathered the storm and in fact are coming out stronger. We have a good liquidity position €106 million at the e
Slide 34: Appendix
Overview a . ; ee P FY21 was heavily affected by travel eDO willto be actea The first quarter-of FY22 Closing remarks 7. Appendix
Slide 35: Why eDreams ODIGEO?
IN SUMMARY 7 37% European OTA flight market eDO LEADING THE WAY - A PROVEN MODEL share 2 1 2 1 1 2 1 WHY EDREAMS ODIGEO? 1 1 RoW Top 6 Market position Source: Internal analysis; Amadeus bookings data; Phocuswright Europe Travel Market Report 2020-24 (March 2021) 35
Slide 36: Diversification revenue continued as the largest contributor
7 DIVERSIFICATION REVENUE CONTINUED AS THE LARGEST CONTRIBUTOR DIVERSIFICATION REVENUE MARGIN (IN € MILLION) Var (IN EUROS MILLION) FY21 FY20 FY21 vs FY20 DIVERSIFICATION 63.9 -77% 278.0 278.0 -77% CLASSIC CUSTOMER 33.0 -79% 156.5 CLASSIC SUPPLIER 10.6 -86% 76.3 63.9 ADVERTISING & META 3.7 -79% 17.9
Slide 37: Revenue diversification by geography remains stable
7 REVENUE DIVERSIFICATION BY GEOGRAPHY REMAINS STABLE TOP 6 REVENUE MARGIN (IN € MILLION) Var (IN EUROS MILLION) FY21 FY20 FY21 vs FY20 TOP 6 85.9 -79% 405.2 405.2 -79% REST OF THE WORLD 25.2 -80% 123.4 TOTAL 111.1 -79% 528.7 85.9 FY20 FY21 REST OF THE WORLD 12% 23% 23% 123.4 -80% FY15 FY20 FY21 77%
Slide 38: Revenue diversification continues to improve
7 REVENUE DIVERSIFICATION CONTINUES TO IMPROVE AND THE LARGEST CONTRIBUTOR TO REVENUES REVENUE DIVERSIFICATION RATIO (*) REVENUE EVOLUTION (*) +13 pp 3% 53% 14% Diversification 53% 57% 44% Classic customer Classic supplier FY20 Advertising & Meta 30% FY19 FY20 FY21 PRODUCT DIVERSIFICATION RATIO +16
Slide 39: Continued strategic progress as evidenced by our KPIs
7 CONTINUED STRATEGIC PROGRESS AS EVIDENCED BY OUR KPIS MOBILE BOOKINGS AS SHARE OF FLIGHT BOOKINGS EVOLUTION OF PRIME MEMBERS AND SHARE OF TOTAL BOOKINGS (*) +17 1000 50% pp 900 876 45% 56% 44% 800 38% 40% 39% 700 35% ‘000 Prime Members Prime Share (%) 600 556 30% FY19 FY20 FY21 500 25% ACQUISITION
Slide 40: Glossary of Definitions
Glossary of Definitions Non-reconcilable to GAAP measures 1. Acquisition Cost per Booking Index refers to the most relevant marketing expenses incurred to acquire new customers (encompassing Paid search, Metasearch and Affiliates), divided by the total number of Bookings. For any given period, the r
Slide 41: Glossary of Definitions
Glossary of Definitions Other Defined Terms 15. Advertising and Metasearch Revenue represents revenue from other ancillary sources, such as advertising on our websites and revenue from our metasearch activities. Our management believes that the presentation of the Advertising and Metasearch Revenue
Slide 42: Glossary of Definitions
Glossary of Definitions Other Defined Terms 25. Fixed Costs per Booking means fixed costs divided by the number of bookings. See definitions of "Fixed costs" and "Bookings". 26. Adjusted Items refers to share-based compensation, restructuring expenses and other income and expense items which are con