Slide 1: 2020 Preliminary Results
2020 PRELIMINARY RESULTS March 2021 Presentation Gary Morrison Caroline Sherry Johnny Quach CEO CFO CPO Credit:@vidademochila
Slide 2: Key Messages
Key Messages 1 FY20 financial performance significantly impacted by COVID-19 travel restrictions Made solid progress on our Roadmap for Growth, delivering core platform enhancements designed to 2 improve marketing capabilities, user experience and inventory competitiveness Balance sheet strengthened
Slide 3: FY20 Financial Summary
FY20 Financial Summary Net Bookings Net Revenue Admin. Expenses1 1.5m €15.4m €36.1m Net Bookings: -79% YoY Net Revenues: -81% YoY Total Spend: -43%YoY EBITDA2 Free Cash Flow2 Cash at Bank3 – €17.3m – €12.3m €18.2m EBITDA FY19: +€20.5m FCF FY19: +€10.9m As at 31/12/19: €19.4m 3 ¹2 Administrative expe
Slide 4: Covid-19 impacted the entire travel landscape, with booking volumes mirroring travel restrictions
Covid-19 impacted the entire travel landscape, with booking volumes mirroring changes in travel restrictions Quarterly Net Bookings, 2020 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
Slide 5: All regions affected, AU/NZ fared better than most
All regions affected, AU/NZ fared better than most Net Bookings, 2020 by Source Net Bookings, 2020 by Destination (as a % of 2019 Net Bookings) (as a % of 2019 Net Bookings) 36% 30% 27% 25% 23% 21% 22% 22% 22% 19% 20% 20% 18% 18% North South Oceania Oceania America America North Europe UK Asia Afric
Slide 6: Robust hostel supply at very low levels of demand
Robust hostel supply at very low levels of demand Growth in producing1 hostels 2018-2020 Growth in producing1 hostels 2020 QoQ +4.9% +7.7% -14.7% ▸ Growth in producing hostels continued +11.2% -14.2% into Q1’20 (pre Covid-19) ▸ Despite significantly lower Q2 through Q4 2020 bookings versus FY19, the
Slide 7: Lower volumes, increased cancellations and bed price deflation impacted revenue
Lower volumes, increased cancellations and bed price deflation impacted revenue Net Revenue Bridge Net ABV Walk -81% -22% €47.4m -13% €80.7m €11.97 -7% -2% €17.9m €9.33 €15.4m 2019 Net Volume Effect¹ Net ABV 2020 2019 Cancellations Bedprice Other 2020 ▸ Volume reduction accounts for 73% of revenue d
Slide 8: Travel patterns significantly impacted marketing costs
Travel patterns significantly impacted marketing costs Marketing costs1 per net booking (€) Marketing costs as a % of net revenue2 +32% +78% €6.38 72% €4.83 €4.31 37% 41% 2018 2019 2020 2018 2019 2020 ▸ Marketing costs per net booking increased by 32% YoY, driven by significant shift in consumer beh
Slide 9: Cost reduction programme implemented in mid-March
Cost reduction programme implemented in mid-March Staff & contractor costs Other opex costs Annualised run rates by qtr, 2020 Annualised run rates by qtr, 2020 -34% -35% €7.7m €8.0m €24.5m €17.2m €5.3m €5.0m €16.2m €16.1m 03/2020 06/2020 09/2020 12/2020 03/2020 06/2020 09/2020 12/2020 ▸ Reduced work
Slide 10: Balance sheet significantly strengthened
Balance sheet significantly strengthened Cash at Bank Management actions: ▸ Entered FY 2020 with a strong cash balance and no debt €40.8m ▸ Liquidity measures taken in FY 2020 include: • Placing of 19.9% of issued share capital raised €14.5 million net proceeds in June 2020 €32.9m • €7 million three
Slide 11: Supporting Employees, Customers and Hostel partners
Supporting Employees, Customers and Hostel partners Employees Customers Hostels ▸ Implemented agile working for ▸ Extended our free cancellation window ▸ Introduced Covid-19 sanitation badge employees to match hostels free cancellation allowing hostels to publish compliance policies with local guide
Slide 12: Looking forward
Looking forward Credit:@madmonkeyhostels
Slide 13: Remain optimistic for the future
Remain optimistic for the future Demand will return Platform strength vs Q4’19 Organisational strength vs Q4’19 ▸ Strongly believe the desire for gap ▸ More competitive inventory ▸ Significantly reduced cost base, year/gap semester travel remains ▸ Improved booking journey, driving increased operati
Slide 14: Hostelling, Volunteering, Working Experiences
Hostelling Volunteering Working Experiences
Slide 15: Making solid progress towards our vision
Making solid progress towards our vision 2019 2020 2021 • Sort Order enhancements (more personalised search results, greater ranking transparency) Supply • Additional promotional rate plan configurations (e.g. discounts on min length of stay) competitiveness • Improved connectivity to 3rd party PMS/
Slide 16: Summary: short-term outlook remains uncertain, but well positioned to emerge stronger
Summary: short-term outlook remains uncertain, but well positioned to emerge from the crisis stronger Latest trading trends FY 2021 outlook Beyond FY 2021 ▸ Booking levels remain very depressed, No formal guidance Continue to execute on our vision though some green shoots appearing ▸ Outlook for tra
Slide 17: Key Investment Highlights
Key Investment Highlights 1 Strong brand recognition across travelers 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 2021 Materially stronger platform is well positioned to captur
Slide 18: Appendices
Appendices Credit:@ClinkHostels
Slide 19: Income Statement
Income Statement €m 2020 2019 ▸ 81% decrease in Net Revenue to €15.4m (2019: €80.7m). The Revenue 15.4 80.7 group's net booking volumes declined by 79% in 2020 (2019: 6% Administrative expenses (36.1) (63.4) decline) Depreciation and amortisation expenses (14.2) (14.0) Impairment Losses (15.0) - ▸ A
Slide 20: Balance Sheet
Balance Sheet €m 2020 2019 ▸ Reduction in carrying value of intangible assets from €109.1m to Non-current assets €86.3m due to a €15.0m impairment recognised on Hostelworld’s Intangible assets 86.3 109.1 Property, plant and equipment 4.5 5.4 intellectual property, as at 31 December 2020 Deferred tax
Slide 21: Cash Flow Statement
Cash Flow Statement €m 2020 2019 ▸ Adjusted EBITDA loss €17.3m (2019: €20.5m profit) due to decline Adjusted EBITDA (17.3) 20.5 in revenue Working capital movement 8.9 (4.4) ▸ €8.9m increase in working capital movement due to: Capitalisation and acquisition of intangible assets (3.8) (2.9) Exception
Slide 22: Key conditions of €30m 5-year Term Loan
Key conditions of €30m 5-year Term Loan1 ▸ 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: • Minim
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
Slide 24: Hostelworld - Meet the World
HOSTELWORLD MEET THE WORLD