OneSpaWorld Holdings Limited · NASDAQ:OSW
OneSpaWorld — Investor Presentation (November 2023)
23 slides from OneSpaWorld's investor presentation, November 2023
Slide 1: The Global Health and Wellness Company – Investor Presentation
– The Global Health and Wellness Company – INVESTOR PRESENTATION | November 2023
Slide 2: Disclosure & Forward-Looking Statements
Forward-Looking Statements This Investor Presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the “safe harbor” provisions of the Private Securities Litigatio
Slide 3: Disclosure, Continued
Use of Projections This Investor Presentation contains financial forecasts, including with respect to estimated Revenues, Net Income, Adjusted Net Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Unlevered After-Tax Free Cash Flow, Levered After-Tax Free Cash Flow and Unlevered After-Tax Fre
Slide 4: Examples of World Class Facilities at Sea, On Land
EXAMPLES OF WORLD CLASS FACILITIES AT SEA, ON LAND
Slide 5: Key Investment Highlights
• 90+% outsourced spa market share on cruise ships PREEMINENT LEADER • Nearly 20x larger than nearest maritime competitor • ~20M annual captive audience • 20+ consecutive years of global passenger growth1 FAVORABLE INDUSTRY KEY INVESTMENT • Strong population and demographic trends DYNAMICS • Emphasi
Slide 6: OneSpaWorld Overview: Highlights
ONESPAWORLD OVERVIEW Exceptional Performance in Q3 2023 • We delivered an excellent third quarter, continuing our strong performance from the first half of the year across substantially all key financial metrics, resulting in a 33% increase in ONESPAWORLD, THE total revenues to a record $216.3 milli
Slide 7: Q4 2023 and FY23 Guidance
Q2 2023 AND FY23 GUIDANCE Q4 2023 ONESPAWORLD, THE PREEMINENT GLOBAL HEALTH & WELLNESS SERVICES $193m-$198m $20m-$22m Revenue Adjusted EBITDA1 COMPANY FY 2023 $792m-$797m $86m-$88m Revenue Adjusted EBITDA1 GROWTH OF 45% AT MID-POINT GROWTH OF 73% AT MID-POINT VERSUS FY 2022 VERSUS FY 2022 INCREASED
Slide 8: Long-Term Agreements with the Largest and Most Reputable Cruise Lines
We Operate on All Global Long-Term C-Level Relationships Across Routes and Ship Classes 1 our Entire Fleet 3 Asia Cruise Line Other Relationship Total Ships OSW Ships Banner Australia 29 Years 26 26 LONG-TERM AGREEMENTS WITH Europe NORTH 29 Years 24 24 EUROPE North America THE LARGEST AMERICA 23 Yea
Slide 9: Cruise Industry Has Rebounded with Increasing Momentum
ON-BOARD SPEND / PASSENGER BOOKINGS 1 ($B) PCD 2 $90.6 $15.3 $15.9 $11.6 $13.9 $11.9 $75.4 $10.1 CRUISE INDUSTRY HAS $10.5 $9.9 REBOUNDED WITH INCREASING MOMENTUM, AND 2023 EXPECTED TO ECLIPSE 2019 — Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 FY LTM Q3 AS OF Q3 2023: 2019 2022 2019 2023 2019 2023 2019 2023 2019 2023 N
Slide 10: Revenue Sharing Contracts Offer Compelling Value
Onboard Health & Wellness Products and Services ONESPAWORLD CRUISE LINES REVENUE SHARING CONTRACTS OFFER RESPONSIBILITY RESPONSIBILITY COMPELLING VALUE Recruit, train and manage worldwide FOR ONESPAWORLD & Fund multi-million-dollar buildout onboard staff CRUISE LINES Offer comprehensive and innovati
Slide 11: OneSpaWorld Has the Only Platform with Processes and Infrastructure
End-to-End Logistics Capabilities BACK-END PLATFORM & FRONT-END PLATFORM & KNOW-HOW KNOW-HOW ONESPAWORLD HAS THE ONLY PLATFORM Global recruiting, training and Yield and revenue human logistics management WITH PROCESSES AND Exceptional pre- through INFRASTRUCTURE Product supply chain facility post-cr
Slide 12: Unmatched Service and Product Breadth
UNMATCHED SERVICE AND PRODUCT Broad Offering of Cruise Passengers an BREADTH ONBOARD Leading Brands Attractive Demographic * * COMPREHENSIVE SPA & BEAUTY SERVICES SERVICES $114,000 AND CURATED BRANDS MEDI-SPA AVERAGE INCOME SOLD TO AN * 49 84% FITNESS ATTRACTIVE CAPTIVE AUDIENCE HEALTH YEARS OLD MAR
Slide 13: Global Cruise Operations Are Highly Complex
Global Passenger Routes GLOBAL CRUISE OPERATIONS ARE HIGHLY COMPLEX In 2022, OneSpaWorld… VISITED EMBARKED ON REQUIRED 1,129 6,661 5,279 GLOBAL PORTS OF CALL VOYAGES STAFF TO FILL OPEN POSITIONS MADE PLACED SENT STAFF ON MORE THAN 1,115 5,378 7,825 MANAGEMENT VISITS TO SHIPS IN PURCHASE ORDERS TO VE
Slide 14: More Than 20 Consecutive Years of Global Passenger Growth
GLOBAL CRUISE SHIP PASSENGERS (M) Recession Recession 29.7 28.5 MORE THAN 20 26.7 CONSECUTIVE YEARS 25.2 OF GLOBAL PASSENGER 23.1 22.3 GROWTH 21.3 20.9 20.5 19.1 17.8 17.2 The global cruise 16.6 15.9 industry has proven 14.8 13.9 resilient through 12.6 recessions with 11.5 passenger counts 9.9 9.6 g
Slide 15: Uniquely Visible and Predictable Growth
Growth Strategy Built on the Following Key Drivers: UNIQUELY VISIBLE AND 1 Capture Highly Visible New Ship Growth with Current Cruise Line Partners 3 Focus on Enhancing Health and Wellness Center Productivity PREDICTABLE GROWTH Cruise capacity growth is highly visible Increase pre-booking and pre-pa
Slide 16: Global Trends to Drive Sector Growth
MULTIPLE MEGA TRENDS DRIVE POSITIVE ROBUST CAPACITY GROWTH IN CRUISING ACROSS GEOGRAPHIES OUTLOOK Global Cruise Capacity Growth: 2020 – 2027 GLOBAL TRENDS TO AGING GLOBAL DRIVE SECTOR POPULATIONS GROWTH 38.7M + PERSISTENT HEALTH & Multiple long-term mega 29.5M WELLNESS TRENDS trends underlie a + com
Slide 17: Exclusive & Highly Attractive Service & Product Innovation
Introduction of High-Value Services Drives Revenue Growth Across Existing Footprint SERVICE & PRODUCT OneSpaWorld Medi-Spa Rollout: Vessel Count by Year INNOVATION ACUPUNCTURE 1ST VESSEL 2005 EXCLUSIVE & HIGHLY ATTRACTIVE GLOBAL 99 94 CHANNEL FOR HIGH 86 86 75 66 MARGIN SPA SERVICES FLEET ROLLOUT
Slide 18: Cruise Lines Are Increasingly Aligned with Us to Drive Onboard Revenue
Onboard Spend as a % of Cruise Operator Revenue 1 Historical Collaboration Health & Wellness Center SIDE ENGAGEMENT ISOLATED SHORE- Branding & Design 34.4% CRUISE LINES ARE INCREASINGLY ALIGNED Signage & Limited Marketing WITH US TO DRIVE ONBOARD REVENUE 25.8% New Areas of Collaboration Weekly Budge
Slide 19: Strong, Visible and Consistent Revenue and Adjusted EBITDA Growth
Historical Revenue Historical PF Adj. EBITDA 2 ($M, FYE Dec.) ($M, FYE Dec.) +43% $7951 $541 $562 $546 $871 $507 STRONG, $453 $476 +73% $59 VISIBLE AND $49 $53 $56 $50 Pandemic $45 CONSISTENT REVENUE & ADJUSTED EBITDA $121 $144 GROWTH WITH EXCEPTIONAL 2015 2016 2017 2018 2019 2020 2021 2022 2023E 20
Slide 20: Asset Light Business Model & Superior After-Tax Free Cash Flow
Exceptional After Tax Free Cash Flow Conversion MINIMAL NEW HEALTH & WELLNESS CENTER CAPEX Cruise lines fund nearly all maritime health and wellness center buildout costs ASSET LIGHT MODEL ASSET LIGHT BUSINESS OneSpaWorld does not own any of its maritime health and wellness centers – all major maint
Slide 21: Sustainability and Social Responsibility
PLANET PEOPLE INTEGRITY Sustainability and Social Responsibility For over half a century, we have been innovators in the spa and wellness industry; bringing our premier services to passengers around the world on cruise ships and in resort spas. Our commitment to the environment is unwavering. We con
Slide 22: OneSpaWorld, the Preeminent Global Health and Wellness Services Company
ONESPAWORLD, THE PREEMINENT GLOBAL HEALTH AND WELLNESS SERVICES COMPANY UNDISPUTED LEADER IN A HIGHLY ATTRACTIVE INDUSTRY GLOBAL MEGA TRENDS DRIVING ROBUST SECTOR GROWTH COMPLEX BUSINESS MODEL NOT EASILY REPLICATED HIGHLY VISIBLE, UNIQUELY PREDICTABLE GROWTH ENHANCED CAPABILITIES ADD TO SALES PRODUC
Slide 23: Thank You
T H A N K YOU P R I V I L E G E D , P R O P R I E T A R Y A N D C O N F I D E N T I A L 25
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