Edreams Odigeo · BME:EDR
Edreams Odigeo — Investor Day (November 2021)
83 slides from Edreams Odigeo's investor day presentation, Nov 17, 2021
Slide 1: Reinventing Travel – Investor Day 2021
REINVENTING TRAVEL INVESTOR DAY 2021 17th November 2021 1 | INVESTOR DAY 2021
Slide 2: CMD Presentation Disclaimer
CMD Presentation Disclaimer This presentation has been prepared by eDreams ODIGEO S.A. (the “Company” and, together This presentation does not constitute or form part of, and should not be construed as, an offer with its subsidiaries, the “Group”) solely for information and background purposes and f
Slide 3: Cautionary Statement Regarding Certain Financial Forecasts and Other Forward-Looking Statements
Cautionary Statement Regarding Certain Financial Forecasts and Other Forward-Looking Statements This presentation includes forward looking statements regarding the Group’s intentions, The financial forecasts presented herein are based on the Group’s business plan which beliefs or current expectation
Slide 4: Non-GAAP and Alternative Performance Measures
Non-GAAP and Alternative Performance Measures The financial information included in this presentation includes, in addition to the financial information prepared in accordance with International Financial Reporting Standards (“IFRS”) and derived from the Group financial statements, alternative perfo
Slide 5: Agenda
AGENDA 01 Overview, Prime subscription model, investment highlights 05 Coffee break (16h00 –16h15) (12h00 –13h30) 02 Lunch break (13h30 –14h00) 06 Closing remarks (16h15 –17h00) 03 Prime economics, financial model and outlook 07 Dinner with the team (19h30) (14h00 –15h00) 04 Breakouts (15h00 –16h00)
Slide 6: Overview, Prime Subscription Model, Investment Highlights
OVERVIEW, PRIME SUBSCRIPTION MODEL, INVESTMENT HIGHLIGHTS 6 | INVESTOR DAY 2021
Slide 7: Our mission
Our mission We are helping our customers see the world through being their one-stop trusted travel partner 7 | INVESTOR DAY 2021
Slide 8: …and be the largest travel subscription program in the world
…and be the largest €XXXXX travel subscription program in the world eDreams Prime -€XX Netflix -€XX Spotify -€XX Amazon -€XX DoorDash -€XX HelloFresh -€XX Headspace -€XX 8 | INVESTOR DAY 2021
Slide 9: eDO superior value proposition leading to market share gains overperforming industry peers
eDO superior value proposition leading to market share gains overperforming industry peers Trading evolution vs. pre-COVID, % 25% 0% eDO -25% +74pp vs. IATA +58pp vs. Low Cost -50% -75% -100% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 IATA Low Cost Airlines eDreams ODIGEO Source: IATA Economics
Slide 10: We are transforming from transaction to subscription
We are transforming from transaction to subscription From transaction... ... to a subscription-based business Pre-COVID* 2Q FY22 annualized FY25 7% 61% ~34% 39% Bookings Bookings # # 93% ~66% 6% 45% ~16% 55% Cash Cash EBITDA EBITDA 94% €M €M ~84% Non Prime Prime Source: Company data * LTM Jan 2020 1
Slide 11: eDO is one of its kind in terms of profitability and growth among subscription peers
eDO is one of its kind in terms of profitability and growth among subcription peers (once maturity is reached) 30% Rule of 40 satisfied 25% Majority of companies have a mature subscription model that is EBITDA Margin 20% operating for more than 10 years 15% 10% 5% 0% 0% 5% 10% 15% 20% 25% 30% Revenu
Slide 12: eDO's large potential: superior returns for shareholders and customers
eDO’s large potential: superior returns for shareholders and customers while transforming the industry CREATE THE LARGEST Prime Members TRAVEL SUBSCRIPTION PROGRAM: PRIME >7.25M eDO Prime ARPU EXPAND OUR MARKET SHARE FY25 TARGETS ~€80 Cash EBITDA ACHIEVE SUPERIOR INDUSTRY MULTIPLES >€180M 12 | INVES
Slide 13: A strong position in an attractive market
1.0 A strong position in an attractive market 13 | INVESTOR DAY 2021
Slide 14: eDO's market is sizeable, growing and attractive
1.0 eDO’s market is sizeable, growing and attractive Sizeable market and largest e- Attractive growth prospects eDO is positioned in the right commerce vertical after the pandemic segments (online and leisure) European Travel European Flight Market €1.3Tn Market Size Online penetration €Bn % over to
Slide 15: Within travel, eDO is the global leader in flights, excluding China
1.0 Within travel, eDO is the global leader in flights, excluding China #2 PLAYER IN FLIGHTS GLOBALLY #1 GLOBAL FLIGHT REVENUE Estimated, CY 2020 (€M) 957 162 #2 92 #3 Source: Company data 15 | INVESTOR DAY 2021
Slide 16: Unrivalled scale in Europe
1.0 Unrivalled scale in Europe #1 PLAYER IN FLIGHTS IN EUROPE EUROPEAN FLIGHT REVENUE Estimated, CY 2020 (€M) 2.3x 136 60 40 30 Source: PhocusWright, Company data, eDO estimate 16 | INVESTOR DAY 2021
Slide 17: We have increased our share during the pandemic
EUROPE MARKET SHARE 2020 OTA flight We have increased 37% (+6pp 19-20) our share during the pandemic Total flight 3.5% Source: PhocusWright, Company data 17 | INVESTOR DAY 2021
Slide 18: This strong position enables eDO to drive unrivalled scale advantages
1.0 This strong position enables eDO to drive unrivalled scale advantages SCALE IN DEMAND STRONG REVENUE DIVERSIFICATION 62M Avg. searches / day(1) 67% (+11pp YoY) 452M Online AI predictions / day(1) % of company revenue from ancillary and non-flight products(3) SCALE IN SUPPLY WORLD-CLASS TECHNOLOG
Slide 19: Building for growth: unrivalled Prime subscription program
2.0 Building for growth: unrivalled Prime subscription program 19 | INVESTOR DAY 2021
Slide 20: eDO is disrupting the market with Prime, a winning customer proposition
2.0 eDO is disrupting the market with Prime, a winning customer proposition What is Sign up for just €54.99 / year DISCOUNTS ON ALL PRIORITY CUSTOMER ACCESS TO SPECIAL YOUR TRAVELS SERVICE DEALS Save on flights, Free exclusive customer Exclusive access to special accommodation, cars & service hotlin
Slide 21: Prime is the #1 travel subscription in the world
2.0 Prime is the #1 travel subscription in the world 1,976 1,729 Prime members in 000’s 1,216 876 758 664 556 564 490 389 275 1Q FY20 2Q FY20 3Q FY20 4Q FY20 1Q FY21 2Q FY21 3Q FY21 4Q FY21 1Q FY22 2Q FY22 Current* Source: Company data *12th November 2021 21 | INVESTOR DAY 2021
Slide 22: Prime appeals to travellers of all ages and all travel preferences
2.0 Prime appeals to travellers of all ages and all travel preferences Who are our Prime members? Demographics Booking Type >150k (€) 6% w/children >56 y/o Inter- 8% continental 19% 60k-150k (€) 21% 23% w/other Regular adults Female 50% 45% 29% 36-55 y/o Domestic 38% 30% 30k-60k (€) 47% Alone 63% Ma
Slide 23: Ground-breaking innovation within the travel industry
Prime is a ground- breaking business model within travel and provides a win-win proposition for customers and for eDO 2.1 Ground-breaking innovation within the travel industry 23 | INVESTOR DAY 2021
Slide 24: The Prime virtuous cycle generates a win-win loyalty relationship with customers
2.1 Ground-breaking innovation 2.2 Superior customer value proposition 2.3 Value creating 2.4 Subscription business model 2.1 The Prime virtuous cycle generates a win-win loyalty relationship with customers Breaking the transactional dynamic in online travel Increased cross-selling allows us to Cust
Slide 25: Prime is a ground-breaking proposition within the travel industry
2.1 Ground-breaking innovation 2.2 Superior customer value proposition 2.3 Value creating 2.4 Subscription business model 2.1 Prime is a ground-breaking proposition within the travel industry Prime is solving the loyalty conundrum within travel EDREAMS PRIME TRADITIONAL LOYALTY SUBSCRIPTION PROGRAMS
Slide 26: Superior value proposition for customers
Prime is a ground- breaking business model within travel and provides a win-win proposition for customers and for eDO 2.2 Superior value proposition for customers 26 | INVESTOR DAY 2021
Slide 27: Prime is a superior value proposition for customers
2.1 Ground-breaking innovation 2.2 Superior customer value proposition 2.3 Value creating 2.4 Subscription business model 2.2 Prime is a superior value proposition for customers Prime has the best ...together with compelling ...resulting in a higher A prices in travel... B non-price benefits... C cu
Slide 28: We offer the best prices in the market across Flights, Accommodation and Car Rentals
2.1 Ground-breaking innovation 2.2 Superior customer value proposition 2.3 Value creating 2.4 Subscription business model We offer the best prices in the market across Flights, 2.2.A Verified Accommodation and Car Rentals by KPMG Flights* Accommodation** Car rental*** % of times eDO Prime has a bett
Slide 29: How much do customers save?
2.1 Ground-breaking innovation 2.2 Superior customer value proposition 2.3 Value creating 2.4 Subscription business model 2.2.A How much do customers save? Couple travelling for a weekend Family holiday for one week (2 adults + 2 children) LISBON BARCELONA MADRID ORLANDO Fri 05/11 – Sun 07/11 Fri 29
Slide 30: Prime also provides compelling non-price benefits
2.1 Ground-breaking innovation 2.2 Superior customer value proposition 2.3 Value creating 2.4 Subscription business model 2.2.B Prime also provides compelling non-price benefits EXCLUSIVE 24x7 CUSTOMER SERVICE 24x7 / Lower waiting time / Best agents “ I first called to make a change to my flight and
Slide 31: Prime also provides compelling non-price benefits
2.1 Ground-breaking innovation 2.2 Superior customer value proposition 2.3 Value creating 2.4 Subscription business model 2.2.B Prime also provides compelling non-price benefits EXCLUSIVE ACCESS TO SPECIAL EXCLUSIVE 24x7 CUSTOMER SERVICE DEALS & PROMOTIONS 24x7 / Lower waiting time / Best agents “ I
Slide 32: Leading to superior customer advocacy and decommoditizing the value proposition
2.1 Ground-breaking innovation 2.2 Superior customer value proposition 2.3 Value creating 2.4 Subscription business model 2.2.C Leading to superior customer advocacy and External independent decommoditizing the value proposition study performed by 91% of our Prime repeat customers score us a 7 or ab
Slide 33: Members promote us for the outstanding customer experience, cheap prices and transparency
2.1 Ground-breaking innovation 2.2 Superior customer value proposition 2.3 Value creating 2.4 Subscription business model Members promote us for the outstanding customer 2.2.C External independent experience, cheap prices and transparency of information study performed by What are the main drivers f
Slide 34: Highly value-creating for eDO and its shareholders
Prime is a ground- breaking business model within travel and provides a win-win proposition for customers and for eDO 2.3 Highly value-creating for eDO and its shareholders 34 | INVESTOR DAY 2021
Slide 35: Prime is highly value-creating for eDO and its shareholders
2.1 Ground-breaking innovation 2.2 Superior customer value proposition 2.3 Value creating 2.4 Subscription business model 2.3 Prime is highly value-creating for eDO and its shareholders High Lifetime Value with More stable source Stronger relationship with attractive returns of revenue our partners
Slide 36: Prime members visit us more often and have a higher CVR than Non Prime
2.1 Ground-breaking innovation 2.2 Superior customer value proposition 2.3 Value creating 2.4 Subscription business model 2.3 Prime members visit us more often and have a higher CVR than Non Prime customers, leading to higher repeat bookings Prime vs. Non Prime index x2.7 x1.4 Repeat bookings (in 12
Slide 37: …and cheaper channel mix
2.1 Ground-breaking innovation 2.2 Superior customer value proposition 2.3 Value creating 2.4 Subscription business model 2.3 …and cheaper channel mix ~75% of Prime members repeat on cheap channels Repeat channel Paid 26% Paid 75% App 39% ~75% Cheap App 8% excl. app Cheap 35% excl. app 17% Transacti
Slide 38: Leading to a significantly higher 24 Month Lifetime Value for Prime members
2.1 Ground-breaking innovation 2.2 Superior customer value proposition 2.3 Value creating 2.4 Subscription business model 2.3 Leading to a significantly higher 24 Month Lifetime Value (LTV) for Prime members Non Prime Prime Prime vs. Non Prime +Prime fee +Revenue Margin +Revenue Margin Similar level
Slide 39: Subscription business model well proven in multiple industries
Prime is a ground- breaking business model within travel and provides a win-win proposition for customers and for eDO 2.4 Subscription business model well proven in multiple industries: we are pioneering it in travel 39 | INVESTOR DAY 2021
Slide 40: The subscription business model is already well proven outside travel
2.1 Ground-breaking innovation 2.2 Superior customer value proposition 2.3 Value creating 2.4 Subscription business model 2.4 The subscription business model is already well proven outside travel, growing much faster than traditional businesses The Subscription Economy Index level vs. S&P 500 and Re
Slide 41: eDO is one of its kind in terms of profitability and growth among subscription peers
2.1 Ground-breaking innovation 2.2 Superior customer value proposition 2.3 Value creating 2.4 Subscription business model 2.4 eDO is one of its kind in terms of profitability and growth among subcription peers (once maturity is reached) 30% Rule of 40 satisfied 25% Majority of companies have a matur
Slide 42: We have a head start with 4.5 years of testing & learning
2.1 Ground-breaking innovation 2.2 Superior customer value proposition 2.3 Value creating 2.4 Subscription business model We have a head start with 4.5 years of testing & learning, product 2.4 and market launches Portugal, USA Spain and United Market France Italy Germany Kingdom test (MVP*) and Aust
Slide 43: Moving from transactional to membership-centric requires a holistic company transformation
2.1 Ground-breaking innovation 2.2 Superior customer value proposition 2.3 Value creating 2.4 Subscription business model 2.4 Moving from transactional to membership-centric requires a holistic company transformation that takes years to achieve Revenue Management AI-based pricing model, lifetime Mar
Slide 44: Outlook: >7.25M Prime members and >€180M Cash EBITDA (FY25)
3.0 Outlook: >7.25M Prime members and >€180M Cash EBITDA (FY25) 44 | INVESTOR DAY 2021
Slide 45: We are transforming into a subscription business, expecting to reach >7.25M Prime members in FY25
3.0 We are transforming into a subscription business, expecting to reach >7.25M Prime members in FY25 # Prime members >7.25M Achievable plan to scale-up Prime Strong track record and x3.7 consistent Prime overperformance in all markets supports renewed guidance Value creating for both customers and
Slide 46: We expect to achieve this target through 4 key growth levers
We expect to achieve this target through 4 key growth levers 3.A 3.B 3.C 3.D Convert current Capture Prime Grow members Capture new Prime transactional share in European in new markets members in other customers to Prime core markets (e.g. US) product categories 46 | INVESTOR DAY 2021
Slide 47: Grow in our core markets by converting current customers
3.A Grow in our core markets by converting current customers… eDO Customer Base 18M AMPLE CONVERSION CONVERT OPPORTUNITY CURRENT …as customers come back after COVID and Transactional customers CUSTOMERS 2019-2021* get exposed to Prime Source: Company data * Flight transactional (non-Prime) eDO custo
Slide 48: …and gaining further share in Europe
3.B …and gaining further share in Europe Addressable EU Market 225M WIDE ADDRESSABLE GAIN SHARE European Households* MARKET ...Europe is the third IN CORE largest travel market MARKETS and we have a large ~95% share to capture Addressable market share** Source: Eurostat, UK Office for National Stati
Slide 49: Grow our members via newer markets
3.C Grow our members via newer markets where we do not have a strong brand or long legacy Prime ...successfully launched in 8 different markets Key differentiator in new markets US example (launched as Minimum Viable Product) Strong +4pp Strong US vs. Core opportunity to Subscription markets** Rate*
Slide 50: Grow our Prime member acquisition in other product categories
3.D Grow our Prime member acquisition in other product categories Non-flight product categories … and eDO cross-sells them with are attractive… great success European OTA Market Gross Non-flight vs. flight Bookings Bookings growth index €Bn, 2019 FY22E vs. FY19 35 x3 1.3x 12 Flight Rest of product c
Slide 51: eDO has demonstrated the ability to capture new customers through Prime
3.0 eDO has demonstrated the ability to capture new customers through the Prime program Share of new customers within Prime members* 60% Source: Company Data * Average % of new customers over 2M Prime member base, October 2021. New customer defined as not having transacted with eDO during the past 3
Slide 52: Targeting a >7.25M Prime member base, >€820M Cash Revenue and >€180M Cash EBITDA
3.0 All in all, targeting a >7.25M Prime member base, >€820M Cash Revenue and >€180M Cash EBITDA Cash Revenue Margin Cash EBITDA €M €M >7.25M 6% 55% ~84% Prime Members FY25* 18% CAGR >820 > 180 34% CAGR 570 454 132 ~€80 65 Prime ARPU FY25 Pre-COVID 2Q FY22 FY25 Pre-COVID 2Q FY22 FY25 annualized annu
Slide 53: eDO is becoming more comparable to subscription based online models
3.0 eDO is becoming more comparable to subscription based online models following successful take-up of Prime From transaction… … to subscription Transaction based online model Subscription based online model Higher customer churn High recurring revenue Higher customer acquisition cost Higher retent
Slide 54: Focused and proven strategy is transforming eDO into a subscription based business
Focused and proven strategy is transforming eDO 3.0 into a subscription based business From transaction… …to subscription Subscription based Traditional OTAs Transition FY25 business model Weight of subscription business(a) 0% 39% 66% 55% Cash Revenue Growth(b) 7% 9% 18% 17% Cash EBITDA Margin(c) (6
Slide 55: Well-proven management team to deliver the plan
3.0 Well-proven management team to deliver the plan High-quality ... with capacity to innovate and management team… adapt to a changing landscape Experienced Leaders in revenue Committed with a clear diversification vision Creating a revolution by Demonstrated track introducing the first record subs
Slide 56: eDO's large potential: superior returns for shareholders and customers
eDO’s large potential: superior returns for shareholders and customers while transforming the industry CREATE THE LARGEST Prime Members TRAVEL SUBSCRIPTION PROGRAM: PRIME >7.25M eDO Prime ARPU EXPAND OUR MARKET SHARE FY25 TARGETS ~€80 Cash EBITDA ACHIEVE SUPERIOR INDUSTRY MULTIPLES >€180M 56 | INVES
Slide 57: Investor Day 2021
INVESTOR DAY 2021 57 | INVESTOR DAY 2021
Slide 58: Reinventing Travel – Investor Day 2021
REINVENTING TRAVEL INVESTOR DAY 2021 17th November 2021 1 INVESTOR DAY 2021
Slide 59: Agenda
AGENDA 01 Overview, Prime subscription model, investment highlights 05 Coffee break (16h00 –16h15) (12h00 –13h30) 02 Lunch break (13h30 –14h00) 06 Closing remarks (16h15 –17h00) 03 Prime economics, financial model and outlook 07 Dinner with the team (19h30) (14h00 –15h00) 04 Breakouts (15h00 –16h00)
Slide 60: Prime Economics, Financial Model and Outlook
PRIME ECONOMICS, FINANCIAL MODEL AND OUTLOOK 3 INVESTOR DAY 2021
Slide 61: CMD Presentation Disclaimer
CMD Presentation Disclaimer This presentation has been prepared by eDreams ODIGEO S.A. (the “Company” and, together This presentation does not constitute or form part of, and should not be construed as, an offer with its subsidiaries, the “Group”) solely for information and background purposes and f
Slide 62: Cautionary Statement Regarding Certain Financial Forecasts and Other Forward-Looking Statements
Cautionary Statement Regarding Certain Financial Forecasts and Other Forward-Looking Statements This presentation includes forward looking statements regarding the Group’s intentions, The financial forecasts presented herein are based on the Group’s business plan which beliefs or current expectation
Slide 63: Non-GAAP and Alternative Performance Measures
Non-GAAP and Alternative Performance Measures The financial information included in this presentation includes, in addition to the financial information prepared in accordance with International Financial Reporting Standards (“IFRS”) and derived from the Group financial statements, alternative perfo
Slide 64: eDO's guidance for continuing the transformation to Prime
eDO’s guidance for continuing the transformation to Prime Prime members Cash Revenue Margin Cash Marginal Profit Cash EBITDA (M) (€M) (€M) (€M) >7.25 >820 >280 >180 ~18% CAGR ~26% CAGR ~34% CAGR ~3.7x 454 123 2.0 65 Current* FY25** 2Q FY22 FY25 2Q FY22 FY25 2Q FY22 FY25 annualized annualized annuali
Slide 65: Aiming to become a predominantly subscription-based platform
Aiming to become a predominantly subscription-based platform… % Prime vs. non-Prime flight bookings Cash Revenue Margin (€M) ~34% >820 61% ~66% 454 39% 2Q FY22 FY25 2Q FY22 FY25 annualized annualized Prime Non Prime Further enhance customer Grow top-line significantly based engagement to foster tran
Slide 66: …with higher Prime mix driving profitability uplift
…with higher Prime mix driving profitability uplift Cash Marginal Profit % ~ 45% ~34% Cash Marginal Profit expected to more than double from 36% 27% FY22 to FY25 due to Prime growth 21% Margin uplift from mix effect as higher margin Prime makes ~ 15% up a higher percentage of Marginal Profit 2Q 2QFY
Slide 67: Attractive unit economics of Prime
Attractive unit economics of Prime... Non Prime Prime Non Prime vs. Prime +Prime fee +Revenue Margin +Revenue Margin Similar level of Revenue Margin First -Variable Cost -Variable Cost Slightly higher variable cost for Prime booking -Prime Discount YEAR 1 +Revenue Margin +Revenue Margin 1st year Sim
Slide 68: … to drive increasing value over time
… to drive increasing value over time Illustrative example – Cash Marginal Profit % Assumes one Prime customer # customers that renews each year 1 1 1 Year 1 margins lower due to 55% customer acquisition costs 50% Variable cost decreases meaningfully as customer renews in years 2 and 3 8% Year YEAR
Slide 69: Understanding the key drivers of the Prime business model
Understanding the key drivers of the Prime business model A B C D Prime subscribers Prime ARPU Variable costs Capital investment Reaching >7.25M Stable ARPU partially Acquisition cost per Investments in Prime members by re-invested in customer driven Prime will benefit end of FY25 customer savings d
Slide 70: Prime subscribers
A Prime subscribers Reaching >7.25M Prime members by end of FY25 Prime members evolution Prime member build-up >7.25M >7.25 ~4x 2.0 ~10x 2.0 0.2 0.6 0.9 Existing Existing Converting Converting New New Geographical Geographical FY25 FY25 FY19 FY19 FY20 FY20 FY21 FY21 Current* Today FY25 FY25 members
Slide 71: Prime ARPU
B Prime ARPU Stable ARPU partially re-invested in customer savings Illustrative Prime ARPU breakdown Prime ARPU evolution (€) (€) Subscription price: relatively similar across geographies Diversification and other revenues: additional revenues on top of flight ticket (additional baggage, seat ~80 ~8
Slide 72: Cash Revenue Margin to become predominantly subscription based
Cash Revenue Margin to become predominantly subscription based Cash Revenue Margin (€M) Growth in Cash Revenue driven by an increase in volume, as ~64% more users convert to Prime due to the platform’s functionality ~18% CAGR >820 and product offerings 41% Additional revenues from repeat 454 custome
Slide 73: Variable costs
C Variable costs Variable costs (€M) Acquisition costs per Prime ~43 customer decrease over time given the lower associated costs with renewal versus ~54% 60 <540 new customer acquisition costs 36% 331 Unitary costs per booking for call center and merchants assumed to stay stable over time to ensure
Slide 74: Cash Marginal Profit uplift from growing base of loyal customers
Cash Marginal Profit uplift from growing base of loyal customers Cash Marginal Profit (€M) ~34% As Prime subscriber base increases, acquisition costs (as % of revenues) decrease driven by repeat customers ~45% ~15% 27% 36% 21% ~84% eDO benefits from platform scalability once the shift to a subscript
Slide 75: Capital investment
D Capital investment Investing to seize further growth opportunities in Prime Fixed costs (€M) 13% steady Investment in IT and product ~100 “eDOers”, which represents the 58 largest component of fixed costs 2Q 2QFY22 FY22 annualized annualized FY23 FY23 FY24 FY24 FY25 FY25 Additional investment to e
Slide 76: Cash EBITDA
Cash EBITDA Prime business model translates to greater profitability Cash EBITDA evolution (€M) Substantial increase in Prime 14% ~22% members (>7.25M in FY25) 19% 10% ~29% ~10% Stable and conservative Prime ARPU ~84% across the period >180 ~34% CAGR Increasing customer engagement and ‘stickiness’ 5
Slide 77: Cash EBITDA sensitivities to base case
Cash EBITDA sensitivities to base case Cash EBITDA upside based on evolution of sales mix Cash EBITDA sensitivity (€M) >5% COVID-19 has changed sales mix (number of passengers, haul type, provider price, >30% return ticket or one way) resulting in lower gross sales per booking Business plan assumes
Slide 78: Highly accretive investments deployed to accelerate Prime program
Highly accretive investments deployed to accelerate Prime program Customer acquisition investment as profitable driver to attract new subscribers... Prime LTV to CAC range* Customer acquisition investment generates significant return over the long-run 2x-3x The initial decrease in margin is recovere
Slide 79: Highly accretive investments deployed to accelerate Prime program
Highly accretive investments deployed to accelerate Prime program …together with capital investment to secure sustainable growth Investment for Prime acceleration*… ∑FY23-25 < €105M Existing platform is ready for further expansion with selective investments (which will slow down EBITDA growth in the
Slide 80: eDO's leverage profile
eDO’s leverage profile Proven de-leveraging track record Leverage profile (ND / Cash EBITDA) eDO had demonstrated a strong 7.2x deleverage capacity until the pandemic COVID pandemic Strong Cash Flow generation enables 4.1x Prime investments while maintaining 3.5x a strong de-leveraging profile 2.3x
Slide 81: What do we need to meet our guidance
What do we need to meet our guidance Conservative assumptions to reach our targets Air travel market Assumed to recover in FY24/25, which provides extensive buffer for recovery recovery Expected to reach 6.3% in FY25 from current 5.5%* (and 3.5% in CY20)… Market share in …. backed by a reasonable im
Slide 82: All in all, significant value creation for eDO achieved through Prime
All in all, significant value creation for eDO achieved through Prime Lower acquisition costs Significant business de-risking Larger loyal leading to higher LTV and from shift to subscription based customer base attractive returns model # Prime members Indexed 24M Lifetime Value 64% FY25 Cash Revenu
Slide 83: Investor Day 2021
INVESTOR DAY 2021 26 | INVESTOR DAY 2021