Edreams Odigeo · BME:EDR
Edreams Odigeo — Q2 2021 Earnings Presentation
25 slides from Edreams Odigeo's earnings presentation, Nov 19, 2020
Slide 1: Results Presentation 2Q FY 2021
RESULTS PRESENTATION 2Q FY 2021 19th November 2020
Slide 2: Disclaimer
Disclaimer This presentation is to be read as an introduction to the unaudited condensed consolidated interim financial statements of the Group and contains key information presented in a 1 concise manner on the Group and its financial condition. The information contained in this presentations is ex
Slide 3: 1. Results highlights
1. Results highlights Current trading & strategy update 2Q FY21 results update Closing remarks Appendix
Slide 4: Results Highlights
1 RESULTS HIGHLIGHTS Improved performance as market picked up significantly in 2Q, yet renewed softening towards the end of the quarter SHORT TERM TRADING AFFECTED BY TRAVEL RESTRICTIONS €34.4 million of Revenue Margin (decrease of 75% vs. 2Q FY20), but 2.1x the amount of 1Q FY21 Marginal Profit
Slide 5: Revenue diversification continues to improve and the largest contributor to revenues
1 REVENUE DIVERSIFICATION CONTINUES TO IMPROVE AND THE LARGEST CONTRIBUTOR TO REVENUES REVENUE DIVERSIFICATION RATIO (**) REVENUE EVOLUTION (**) +8 48% pp 5% Diversification 48% 56% 15% Classic customer 41% Classic supplier 2Q FY20 Advertising & Meta 2Q FY19 2Q FY20 2Q FY21 32% PRODUCT DIVERSIFICATI
Slide 6: Continued strategic progress as evidenced by our KPIs
1 CONTINUED STRATEGIC PROGRESS AS EVIDENCED BY OUR KPIS MOBILE BOOKINGS AS SHARE OF FLIGHT BOOKINGS (*) ACQUISITION COST PER BOOKING INDEX (*) +12 pp 57% 42% 45% -48pp 100 2Q FY19 2Q FY20 2Q FY21 75 CUSTOMER REPEAT BOOKING RATE (ANNUALISED) +3 (**) 52 pp 49% 46% 44% 22% 2Q FY19 2Q FY20 2Q FY21 FY15
Slide 7: 2. Current trading & strategy update
Results highlights 2. Current trading & strategy update 2Q FY21 results update Closing remarks Appendix
Slide 8: Trading shows strong and rapid rebound as travel restrictions lifted
TRADING SHOWS STRONG AND RAPID REBOUND AS TRAVEL RESTRICTIONS LIFTED 2 KEY HIGHLIGHTS ON TRADING POST COVID-19 GRADUAL IMPROVEMENTS IN YEAR-ON-YEAR TRADING & AHEAD OF AIRLINE INDUSTRY ● Rapid rebound in Bookings during the summer, from April trough at minus 96% to minus 59% in Sept Nov August. REGIO
Slide 9: Leisure customer is willing to travel if allowed
LEISURE CUSTOMER IS WILLING TO TRAVEL IF ALLOWED 2 INTRODUCTION OF A VACCINE LIKELY TO RESULT IN A THERE IS WILLINGNESS TO FLY BETWEEN 0 & 6 MONTHS SHARP REBOUND AGAIN Survey question: When will you return to air travel? ● Analysis from IATA Economics on the 29th of September suggest: Over 80% pas
Slide 10: Strong liquidity is a consequence of strong business model and active management
STRONG LIQUIDITY IS A CONSEQUENCE OF STRONG BUSINESS MODEL AND ACTIVE 2 MANAGEMENT OF THE SITUATION KEY HIGHLIGHTS ON LIQUIDITY PERFORMANCE IMPROVED LIQUIDITY EVOLUTION Strong liquidity despite increasing travel restrictions and acceleration of reimbursements to customers vs inflows 144 132 receiv
Slide 11: Prime is performing strongly in a weak market
PRIME IS PERFORMING STRONGLY IN A WEAK MARKET 2 KEY HIGHLIGHTS OF PRIME PERFORMANCE EVOLUTION OF PRIME MEMBERS AND SHARE OF TOTAL BOOKINGS 700 664 35% Prime subscription and share of Prime continue to grow o Prime members 2Q FY21: 664k vs 389k in 2Q 600 564 30% 556 FY20 (+71%) 26% o Prime share of
Slide 12: Focus on the customer during high airline cancellations
DURING THESE TIMES OF HIGH AIRLINE CANCELLATIONS WE HAVE FOCUSED ON THE 2 CUSTOMER KEY HIGHLIGHTS ON CANCELLED FLIGHTS MANAGEMENT 92% of cancelled flights have been resolved and/or processed We have invested in significantly increasing our contact centre capacity We have developed automated fl
Slide 13: Our top 3 priorities
OUR TOP 3 PRIORITIES 2 PRIME CONNECTIVITY CS AUTOMATION Introduce Prime in more of Improve the quality of the Implement an automated our markets, expand to other content by building a content customer service system, travel services and improve agnostic platform which will which is volume agnostic s
Slide 14: 3. 2Q FY21 results update
Overview Current trading & strategy update 3. 2Q FY21 results update Closing remarks Appendix
Slide 15: Highlights 2Q FY21: Income Statement
3 INCOME STATEMENT Highlights 2Q FY21 2Q VAR 2Q 6M VAR 6M 1. Revenue Margin decreased by 75% mainly due to the volume (IN EUROS MILLION) FY21 FY21 FY20 FY21 FY21 FY20 effect (62% decrease in Bookings) and lower RM/Booking, VS FY20 VS FY20 driven by lower average basket value of Bookings due to REVEN
Slide 16: Highlights 2Q FY21: Cash Flow Statement
3 CASH FLOW STATEMENT Highlights 2Q FY21 (IN EUROS MILLION) 2Q 2Q 6M 6M 1. Net cash from operating activities improved by €12 million. FY21 FY20 FY21 FY20 mainly reflecting: ADJUSTED EBITDA (*) -2.1 29.1 -16.8 57.2 Working capital outflow of €1.8 million due to acceleration of reimbursements to cust
Slide 17: 4. Closing remarks
Results highlights Current trading & strategy update 2Q FY21 results update 4. Closing remarks Appendix
Slide 18: In Summary
4 IN SUMMARY Our business is strong and we are positioning to be a winner from the crisis. We have a good liquidity position. Our liquidity position of €117 million at the end of October, no short term financial debt payments and our Senior Notes, new Government Sponsored loan and bank facilities ar
Slide 19: Why eDreams ODIGEO?
4 32% #1 European Winner in Europe OTA flight market share Pioneer in travel 2 1 subscription Significant revenue diversification 2 1 World leading capabilities 1 2 1 1 1 Why eDreams ODIGEO? RoW Top 6 Market position Source: Internal analysis; Amadeus bookings data; Phocuswright European Travel Over
Slide 20: 5. Appendix
Results Highlights Current trading & strategy update 2Q FY21 results update Closing remarks 5. Appendix
Slide 21: Diversification revenue is more resilient than classic customer revenue
5 DIVERSIFICATION REVENUE IS MORE RESILIENT THAN CLASSIC CUSTOMER REVENUE DIVERSIFICATION REVENUE MARGIN (IN € MILLION) Var (IN EUROS MILLION) 2Q FY21 2Q FY20 FY21 vs FY20 DIVERSIFICATION 20.6 -70% 69.9 -70% 69.9 CLASSIC CUSTOMER 10.6 -72% 38.3 CLASSIC SUPPLIER 1.7 -93% 24.8 20.6 ADVERTISING & META
Slide 22: Revenue diversification by geography remains stable
5 REVENUE DIVERSIFICATION BY GEOGRAPHY REMAINS STABLE TOP 6 REVENUE MARGIN (IN € MILLION) Var (IN EUROS MILLION) 2Q FY21 2Q FY20 FY21 vs FY20 FRANCE 11.8 -67% 36.1 -74% SPAIN + ITALY 106.0 6.4 -78% 29.5 GERMANY, NORDICS & UK 9.6 -76% 40.5 27.8 TOP 6 27.8 -74% 106.0 REST OF THE WORLD 6.7 -80% 33.7 2Q
Slide 23: 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 24: 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 25: 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