Slide 1: 2021 Interim Results
2021 Interim Results August 2021 Presentation
Slide 2: Key Messages
Key Messages Although trading remains depressed versus FY 2019 (pre-COVID), demand is recovering quickly 1 when travel restrictions are eased Continued progress on core platform competitiveness, platform modernisation and longer term 2 growth strategy Strong liquidity position: operating cash burn r
Slide 3: H1 '21 Financial Summary
H1 ’21 Financial Summary Net Bookings Net Revenue Admin. Expenses2 0.3m €2.9m €13.5m Net Bookings: -73% YoY Net Revenue: -76% YoY1 Total Spend: -43% YoY EBITDA2 Free Cash Flow 3 Cash 4 – €9.7m – €9.7m €33.7m EBITDA H1 '20: - €8.3m FCF H1 '20: - €2.8m As at 30/06/2020: €32.9m 1 Decline in YoY net rev
Slide 4: All travel segments gradually improving
All travel segments gradually improving Quarterly Net Bookings, by destination type (as a % of 2019* Net Bookings) Long-Haul Short-Haul Domestic 80% 80% 80% 70% 70% 70% 60% 60% 60% 50% 50% 50% 40% 40% 40% 30% 30% 30% 20% 20% 20% 10% 10% 10% 0% 0% 0% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q1'20 Q2'20 Q3
Slide 5: North & Central America leading the recovery
North & Central America leading the recovery Net Bookings, H1 '21 by Source Net Bookings, H1 '21 by Destination (as a % of 2019 Net Bookings) (as a % of 2019 Net Bookings) North & Central America 33% North & Central America 20% Oceania South Oceania South 12% Europe UK America Europe 9% UK America 8
Slide 6: Where travel restrictions have eased, demand has recovered
Where travel restrictions have eased, demand has recovered ▪ Mexico has some of the world's least stringent restrictions in place with no prior requirement for vaccination, negative COVID test or quarantine Net Bookings, 2021 by Destination 36% ▪ Greece also opened its borders in mid-May'21 to (as a
Slide 7: Resilient hostel supply despite extended impact of low demand
Resilient hostel supply despite extended impact of low demand Growth in producing1 hostels as a % of 2019 producing hostels +4.9% -52.3% -53.0% ▪ The number of producing hostels in Q1 ’21 and Q2 ’21 slightly -51.2% ahead of Q2 ’20 (COVID low point) -55.3% -59.0% ▪ 16,700 hostels listed on our platfo
Slide 8: Overall revenue remains depressed versus H1 '19
Overall revenue remains depressed versus H1 ’19 Net Revenue Bridge (2YoY) Net ABV Bridge (2YoY) -93% -6% €0.61 €0.17 €2.43 €2.13 €33.4m €38.8m €12.47 €11.72 €2.6m €2.9m H1 20191 Bedprice - Bedprice - Cancellations Other H1 2021 Net Revenue H1 2019 Net Volume Effect Net ABV Net Revenue H1 2021 Underl
Slide 9: Marketing costs remain elevated given continued uncertainty
Marketing costs remain elevated given continued uncertainty Marketing costs1 per net booking (€) Marketing costs as a % of net revenue2 +67% +71% €7.75 €6.54 76% 64% €4.64 37% H1 2019 H1 2020 H1 2021 H1 2019 H1 2020 H1 2021 ▪ Marketing costs per net booking increased by 67% 2YoY, driven by continued
Slide 10: Continued reduction in operating costs
Continued reduction in operating costs Staff & contractor costs Other opex costs Annualised run rates by qtr, 2020 & H1 ’21 H1 ’19 vs H1 ’20 vs H1 ’21 -39% -41% -34% €24.5m €17.2m €16.2m €16.1m €14.8m €14.6m 03/2020 06/2020 09/2020 12/2020 03/2021 06/2021 ▪ Reduced working hours, temporary lay-offs
Slide 11: Liquidity remains very strong
Liquidity remains very strong Cash at Bank €32.9m €33.7m €3.5m ▪ Management actions: €14.5m1 €19.4m ▪ Entered FY 2020 with a strong cash balance and no debt €18.2m €28.8m1 €1.2m ▪ Liquidity measures taken in FY 2020 and H1 '21 include: ▪ Placing of 19.9% of issued share capital raised €14.5 million
Slide 12: Looking forward
Looking forward credit:@MADMONKEYHOSTELS
Slide 13: Remain optimistic for the future
Remain optimistic for the future Encouraging near term demand data Strong business fundamentals ▪ H1 '21 trading data demonstrates our customers are ▪ : Improved inventory competitiveness, booking when restrictions are lifted user experience enhancements and stronger marketing ▪ Trading economics gr
Slide 14: Making solid progress on our strategy (H1 '21 delivery)
Making solid progress on our strategy (H1 '21 delivery) ▪ Continued delivery of hostel driven promotion plus… features increasing inventory competitiveness ▪ Continued checkout experience improvements ▪ More experiences (inventory) which our increasing conversion rates customers use as a means to me
Slide 15: Significant upgrade to website design, Apps to follow in Q4
Significant upgrade to website design, Apps to follow in Q4 15
Slide 16: While near term outlook remains uncertain, we remain confident in our vision and execution ability
While near term outlook remains uncertain, we remain confident in our vision and execution ability Latest trading trends H2 '21 outlook Beyond FY 2021 ▪ Booking levels continuing to improve, No formal guidance Continue to execute on our strategy mirroring changes in travel restrictions ▪ Outlook for
Slide 17: Key investment highlights
Key investment highlights 1 Strong brand recognition across travellers and hostel owners 2 Asset light, historically highly cash generative business model operating in a growing market 3 Lean cost base with strong balance sheet going into H2 ‘21 4 Materially stronger platform is well positioned to c
Slide 18: Appendices
Appendices Credit:@clinkhostels
Slide 19: Income Statement
Income Statement €m H1 2021 H1 2020 Revenue 2.9 12.0 Administrative expenses (13.5) (23.7) Depreciation and amortisation expenses (8.5) (6.9) Operating loss (19.1) (18.6) Finance income - - Finance costs (1.4) (0.1) ▪ Net revenue declined by 76% to €2.9m (H1 '20: €12.0m). The Group's net booking vol
Slide 20: Balance Sheet
Balance Sheet €m H1 2021 H1 2020 Non-current assets Intangible assets 79.7 105.6 Property, plant and equipment 3.4 5.7 Deferred tax assets 8.0 7.2 Investment in associate 2.2 2.6 93.3 121.1 Current assets Trade and other receivables 2.0 2.3 Corporation tax - 0.1 Cash and cash equivalents 33.7 32.9 ▪
Slide 21: Cash Flow Statement
Cash Flow Statement €m H1 2021 H1 2020 Adjusted EBITDA (9.7) (8.3) Working capital movement 0.9 9.6 Capitalisation and acquisition of intangible assets (0.8) (2.2) Exceptional costs (0.6) (3.0) Purchase of property, plant and equipment - (0.1) Net interest / income tax paid (0.1) (0.0) Free cash flo
Slide 22: Key Conditions of €30m 5-year Term Loan
Key Conditions of €30m 5-year Term Loan ▪ Pricing: margin of 9.0% per annum over EURIBOR (with a EURIBOR floor of 0.25%) ▪ Year 1: capitalised interest ▪ Year 2 and 3: option to capitalise 4.0% of interest and 5.0% to be paid in cash ▪ Year 4 and 5: cash interest only ▪ Financial Covenants: ▪ Minimu
Slide 23: Disclaimer
Disclaimer ▪ NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO ANY JURISDICTION IN WHICH SUCH DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL. ▪ This presentation has been prepared by hostelworld group plc (the "company") for informational and background purposes only. ▪ The