Hostelworld Group Plc · LSE:HSW

Hostelworld — Investor Day (April 2025)

50 slides from Hostelworld's investor day presentation, Apr 29, 2025

1. Slide 1: Capital Markets Day

   Capital Markets Day April 29 2025 th

2. Slide 2: Disclaimers

   CAPITAL MARKETS DAY 2025 | 2 Disclaimers This presentation, and any ancillary documents relating to it, any oral presentation and any question or answer session (together, the "Presentation") is being supplied to you solely for information purposes in connection with the capital markets day to be ho

3. Slide 3: Agenda

   overview insights growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 3 Agenda 01 Overview 02Insights 03 Growth 2.00-2.15pm 2.15-2.30pm 2.30-3.00pm 04 Outlook 05 Summary 06 Q&A 3.00-3.20pm 3.20-3.30pm 3.30-4.00pm

4. Slide 4: Overview

   S 2 > hon ® > 1°)

5. Slide 5: Our Vision

   overview insights growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 5 Our Vision The world's leading social travel platform Empowering a global community of travellers to connect, explore, and create unforgettable experiences together

6. Slide 6: Investment proposition

   overview overview insights growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 6 Investment proposition Highly differentiated First mover advantage successfully delivering against a powerful unmet travel product need in the travel industry : “Help travellers find people to hang out with” Growing T

7. Slide 7: Significant progress since last CMD

   overview overview insights growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 7 Significant progress since last CMD Successfully built world’s 1st social …capturing highly valuable hostel …delivering substantial free travel network…. OTA customers…. cashflow ● 2.6m+ social members ● Social Member

8. Slide 8: Strong cashflow generation will fuel expansion and enhanced shareholder returns

   overview overview insights growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 8 Strong cashflow generation will fuel expansion and enhanced shareholder returns Strengthen core business Expand addressable market ~20m youth travellers/year ~120m youth travellers/year ● Expand Hostel inventory ● Exp

9. Slide 9: Capital allocation priorities provide both near term returns and support long term value creation

   overview overview insights growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 9 Capital allocation priorities provide both near term returns and support long term value creation for shareholders ● Invest to strengthen core business ● Invest to support expansion into wider youth travel market ● Re

10. Slide 10: Insights: Social travel platform

    Insights Social travel platform

11. Slide 11: overview insights growth

    overview insights growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 11

12. Slide 12: Social Members LOVE our platform

    overview insights insights growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 12 Social Members LOVE our platform

13. Slide 13: Social Members become our strongest brand advocates

    overview insights insights growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 13 Social Members become our strongest brand advocates ● Unique social network inspired ”customer testimonials” − 660k+ brand tags and mentions on Instagram to date − ~3,000 pieces of new branded/tagged UGC collected ea

14. Slide 14: Pioneering social strategy attracts and retains high value customers

    overview insights insights growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 14 Pioneering social strategy attracts and retains high value customers Social members account for ... make 2.2x the bookings compared … and are 3.2x more likely to >80% of all bookings on our platform to non members ov

15. Slide 15: Growth in active social members driving higher booking volumes

    overview insights insights growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 15 Growth in active social members driving higher booking volumes… Booking frequencies consistently outpacing non social members Active Customers1 (m) Net bookings / month Net bookings (m) 0.7 3.0 0.7 0.0 0.0 0.0 Jul-22

16. Slide 16: Social Network is expanding rapidly, with increasing engagement

    overview insights insights growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 16 Social Network is expanding rapidly, with increasing engagement Driven by continued product innovation and powerful network effects Unique Social Members (m) +47% +87% Growth in bookings made Growth in messages sent

17. Slide 17: Generating a highly valuable, proprietary data set

    overview insights insights growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 17 Generating a highly valuable, proprietary data set Key enabler for future innovation and competitive advantage Key characteristics: Value: ● Content-rich, peer to peer ● Comprehensive data set : authentic conversatio

18. Slide 18: App-centric business model proven to reduce traditional marketing spend

    overview insights insights growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 18 App-centric business model proven to reduce traditional marketing spend over the long term Net booking mix by platform Marketing as a % of Revenue1 +18% Growth in App bookings CAGR, Q1’23-Q1’25 58% 50% 46% FY '22 FY

19. Slide 19: Scalable, asset light business model is driving FCF growth

    overview insights insights growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 19 Scalable, asset light business model is driving FCF growth Returned to net cash position in 2024 Opex as % of Revenue1 Adjusted Free Cashflow2 (€m) €m Net Cash / (Debt)3 FCF % FCF % 40% 15.0 75% 66% 5.0 14.4 13.9 35%

20. Slide 20: Growth: Core business opportunity

    Growth Core business opportunity

21. Slide 21: overview insights growth

    overview insights growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 21

22. Slide 22: Invest to grow share in our existing hostel category

    overview insights growth growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 22 core business opportunity Invest to grow share in our existing hostel category Four key investment areas already underway Expand Hostel Inventory Increase marketplace monetisation ● Target >80% market ● Flexible tools

23. Slide 23: Expand our directly contracted hostel inventory

    overview insights growth growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 23 core business opportunity Expand our directly contracted hostel inventory Targeting >80% market coverage in 2027 Supply Side initiatives Market coverage1 >80% ● Increase local presence in LatAm & Asia destinations 77%

24. Slide 24: Grow marketplace monetisation

    overview insights growth growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 24 core business opportunity Grow marketplace monetisation Providing hostels with more flexible tools to manage inventory and visibility, increases Hostelworld revenues Platform enhancements OTA Commission rate (%)1 ● Enh

25. Slide 25: Travellers often seek connections with like-minded travellers

    overview insights growth growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 25 core business opportunity Travellers often seek connections with like-minded travellers Need reassurance in their travel plans before committing to flights/accommodation ● Research shows a significant demand to find tr

26. Slide 26: Our new global trip plan marketplace will enhance our social network

    overview insights growth growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 26 core business opportunity Our new global trip plan marketplace will enhance our social network Driving app adoption in the “pre-booking” phase will reduce future customer acquisition costs Value for Users Value for Hos

27. Slide 27: AI-powered features enhance the post-booking customer experience

    overview insights growth growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 27 core business opportunity AI-powered features enhance the post-booking customer experience Unlocks smarter ways for travellers to discover and connect ● Enhanced traveller matching : Recommend traveller to traveller an

28. Slide 28: Which will power a social media flywheel

    overview insights growth growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 28 core business opportunity Which will power a social media flywheel Investing in a new, low-cost customer acquisition channel that leverages our social brand advocates Our unique advantages: ● Every social interaction w

29. Slide 29: Strengthening our core business unlocks future market expansion

    overview insights growth growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 29 core business opportunity Strengthening our core business unlocks future market expansion Growing youth traveller customer base, engaging via our Apps, driven by… Continuing to build our market coverage to drive active

30. Slide 30: Growth: Evolving towards our Vision

    Growth Evolving towards our Vision

31. Slide 31: Our customers book diverse travel products from a highly fragmented set of providers

    overview insights growth growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 31 evolving towards our vision Our customers book diverse travel products from a highly fragmented set of providers Social Travel for all age groups ~120m youth travellers1 ~€90Bn experience market2 Study Abroad & ~€10bn

32. Slide 32: Youth travellers share a common need for social connection

    overview insights growth growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 32 evolving towards our vision Youth travellers share a common need for social connection We can leverage our Social Network capabilities in this broader market to create competitive advantage

33. Slide 33: Strong youth travel growth forecasted over the coming years

    overview insights growth growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 33 evolving towards our vision Strong youth travel growth forecasted over the coming years Expanding our product range will enable us to tap into a growing youth travel market Global Youth Travel Travelers (Pax≤2) by year

34. Slide 34: Supplement hostel inventory with budget accommodation options

    overview insights growth growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 34 evolving towards our vision Supplement hostel inventory with budget accommodation options… ● Fully HW-branded experience within our OTA platform ● Seamless integration into our social network ● Partnering with a third-

35. Slide 35: To accelerate active customer growth and conversion rates

    overview insights growth growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 35 evolving towards our vision … to accelerate active customer growth and conversion rates… Significantly expanding accommodation options available. Total number of budget properties available2 ● The depth and breadth of

36. Slide 36: Creating more value for all stakeholders in our ecosystem

    overview insights growth growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 36 evolving towards our vision …creating more value for all stakeholders in our ecosystem Augmenting our inventory with budget accommodation properties creates value for all stakeholders ● Alternative budget accommodation

37. Slide 37: Create new revenue streams from our growing Social platform

    overview insights growth growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 37 evolving towards our vision Create new revenue streams from our growing Social platform Leverage social platform growth to generate incremental revenue streams Laying the foundations AI powered user experience Social M

38. Slide 38: Evaluating a variety of different monetization models

    overview insights growth growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 38 evolving towards our vision Evaluating a variety of different monetization models Advertising/ Partnerships Premium Subscription eCommerce Integration Data Licensing

39. Slide 39: Actively progressing our three-year growth plan

    overview insights growth growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 39 evolving towards our vision Actively progressing our three-year growth plan New capabilities set to launch in 2025, broader scaling expected in 2026 Already Underway Q2 25 Q3 25 Q4 25 2026 Hostel inventory Expansion En

40. Slide 40: Selective M&A opportunities will supplement organic initiatives

    overview insights growth growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 40 evolving towards our vision Selective M&A opportunities will supplement organic initiatives Accelerate revenue and margin growth by expanding into new adjacent markets ~120m youth travellers ~€90Bn experience market •

41. Slide 41: Rigorous selection criteria to evaluate targets and ensure attractive returns

    overview insights growth growth outlook summary Q&A CAPITAL MARKETS DAY 2025 | 41 evolving towards our vision Rigorous selection criteria to evaluate targets and ensure attractive returns Attractive Strategic Value Creation Financial 1 sub-segment 2 Alignment 3 Potential 4 Returns Online marketplace

42. Slide 42: Outlook

    Outlook

43. Slide 43: We expect our growth strategy to yield stronger cashflows over time

    overview insights growth outlook outlook summary Q&A CAPITAL MARKETS DAY 2025 | 43 We expect our growth strategy to yield stronger cashflows over time Investments focused on enhancing our existing business model Revenue Margin Operating 1 Growth 2 Discipline 3 Model ● Customer focused growth ● Maint

44. Slide 44: Our capital allocation priorities focus on creating long-term value for shareholders

    overview insights growth outlook outlook summary Q&A CAPITAL MARKETS DAY 2025 | 44 Our capital allocation priorities focus on creating long-term value for shareholders through multiple initiatives Strengthen the Expand into Incremental Share 1 Core 2 adjacencies 3 Dividend 4 M&A 5 buy-back Additiona

45. Slide 45: Short and medium-term targets

    overview insights growth outlook outlook summary Q&A CAPITAL MARKETS DAY 2025 | 45 Short and medium-term targets FY 2024 FY 2025 FY 2026 / 27 Actuals Trends Targets Net Revenue €92.0m Mid single-digit % Low double-digit %* Marketing % of Revenue 46% 45% - 50% 45% - 50% Adj. EBITDA margin 24% c. 20%

46. Slide 46: We will reinstate a progressive dividend for 2025, and introduce a share buy-back programme

    overview insights growth outlook outlook summary Q&A CAPITAL MARKETS DAY 2025 | 46 We will reinstate a progressive dividend for 2025, and introduce a share buy-back programme Warehoused Continue to repay Irish Revenue Commissioners per agreed timeline (€2.7m due in 2025) payroll taxes Dividend Reins

47. Slide 47: Summary

    Summary ——

48. Slide 48: A differentiated investment in Social and Travel

    overview insights growth outlook summary summary Q&A CAPITAL MARKETS DAY 2025 | 48 A differentiated investment in Social and Travel Highly differentiated, customer led Powerful business model with Significant organic and inorganic growth strategy strong network effects growth opportunities ● Unique

49. Slide 49: Q&A

    Q&A

50. Slide 50: Meet the World

    - MEET THE WORLD ©

Hostelworld Group — Investor Day (April 2025) on 6ix