Edreams Odigeo · BME:EDR
Edreams Odigeo — 9M FY2018 Earnings Presentation
29 slides from Edreams Odigeo's earnings presentation, Feb 28, 2018
Slide 1: First 9 Months Results
First 9Months Results Fiscal Year 2018 9M Results, ending December 31st 2017 February 28th 2018
Slide 2: Disclaimer
First 9Months FY 2018 Results Presentation Disclaimer This presentation is to be read as an introduction to the unaudited consolidated financial statements of the Group and contains key information presented in a concise manner on the Group and its financial condition. The information contained in
Slide 3: First 9 Months Results Highlights
First 9Months Results Highlights • 9M Results Highlights • KPIs • Financial Results • Outlook • Appendix
Slide 4: Results Highlights
First 9Months FY 2018 Results Presentation Results Highlights Solid performance ▪ In line with Q3 guidance, which reflects the investments made in our business through the implementation of our strategy and the change in our revenue model 9M performance was driven by: ▪ Solid growth in Revenue Margi
Slide 5: Results on track to meet raised FY 2018 guidance
First 9Months FY 2018 Results Presentation Results on track to meet raised FY 2018 guidance Bookings (*) Revenue Margin (*) Adjusted EBITDA (*) In thousands +1% In € million In € million 8,504 8,393 368.3 88.7 349.7 7,818 333.9 75.9 64.1 +9% -1% +5% +5% +18% +17% 9M 9M 9M 9M 9M 9M 9M 9M 9M FY 16 FY
Slide 6: KPIs
KPIs • 9M Results Highlights • KPIs • Financial Results • Outlook • Appendix 6
Slide 7: Revenue diversification strategy tracked through performance indicators
First 9Months FY 2018 Results Presentation Success in our revenue diversification strategy is tracked through a series of performance indicators Revenue diversification ratio Product diversification ratio Acquisition cost per booking index Repeat booking Share of mobile bookings 77
Slide 8: Growing share of revenues coming from our diversification strategy
First 9Months FY 2018 Results Presentation Growing share of revenues coming from our diversification strategy Revenue diversification ratio (*) Revenue split Diversification revenue Classic Supplier revenue Revenue diversification ratio Classic customer revenue Advertising & Meta 33% 29% 5% 14% 15%
Slide 9: Increasing ability to add value to customers, booking with more attachments
First 9Months FY 2018 Results Presentation Increasing ability to add value to customers, booking with more attachments Product diversification ratio 51% Product diversification ratio (*) 44% Q3 ‘17 Q3 ‘18 (*) Definitions of Non-GAAP measures on page 27-29 9
Slide 10: Decreasing acquisition cost v. index of Q4 FY 15
First 9Months FY 2018 Results Presentation Decreasing acquisition cost v. index of Q4 FY 15 before start of transformation Acquisition cost per booking Index 100 -21 percentage points 77 79 Acquisition cost per booking index (*) Q4 ’15 Q3 ’17 Q3 ‘18 Baseline (*) Definitions of Non-GAAP measures on p
Slide 11: Repeat rates in line with guidance
First 9Months FY 2018 Results Presentation Repeat rates in line with guidance Customer repeat booking rate; Annualised view 40% 38% Repeat booking (*) Q3 ‘17 Q3 ‘18 (*) Definitions of Non-GAAP measures on page 27-29 11
Slide 12: Strong growth in Mobile Bookings, beating industry average
First 9Months FY 2018 Results Presentation Strong growth in Mobile Bookings, beating industry average Mobile as share of flight bookings 36% EU industry average 30% +12pp Gap vs Industry +9pp Average 24% 21% (**) (*) Q3 FY 2017 Q3 FY 2018 Share of mobile bookings (*) Source: Phocuswright European On
Slide 13: Financial Results
Financial Results • 9M Results Highlights • KPIs • Financial Results • Outlook • Appendix 13
Slide 14: Income statement
First 9Months FY 2018 Results Presentation Income statement 3M Dec 3M Dec 9M Dec 9M Dec FY17 FY18 Var. FY17 FY18 Var. Key highlights 9M FY 2018 (In € million) ▪ Revenue margin up 5% Revenue margin 108.7 113.9 5% 349.7 368.3 5% ▪ Variable Costs grew 2%, mostly due to discounts to Variable costs (64.9
Slide 15: Cash flow statement
First 9Months FY 2018 Results Presentation Cash flow statement 3M Dec 3M Dec 9M Dec 9M Dec Key highlights Q3 FY 2018 (In € million) FY17 FY18 FY17 FY18 ▪ Cash flow from operations decreased by €15.4 million: Adjusted EBITDA (*) 21.7 30.1 75.9 88.7 – Increase adj. EBITDA by €8.3m Non recurring items
Slide 16: Debt and leverage
First 9Months FY 2018 Results Presentation Debt ▪ Gross Leverage ratio was down to 3.61x in December 2017 Gross Leverage Ratio (*) vs 4.00x in December 2016, which gives us ample headroom (Total Gross Financial Debt / LTM Adjusted EBITDA ) 7 vs our covenant ratio. 6 x LTM Adj. EBITDA 5 ▪ Despite cas
Slide 17: Outlook
Outlook • 9M Results Highlights • KPIs • Financial Results • Outlook • Appendix 17
Slide 18: Reiterate full year Outlook
First 9Months FY 2018 Results Presentation FY 2018 TARGETS Reiterate full year Outlook Outlook Statement Outlook for FY 2018 (Updated Nov 2nd) We continue to benefit from the strategic shift in our business model and we reconfirm our increased guidance from November 2017 for Bookings, Revenue Margin
Slide 19: Financial policy in line with strategy
First 9Months FY 2018 Results Presentation OUR VISION - LONGER TERM TARGETS Financial policy in line with strategy We will control the transformation pace to continue Increased long-term target of EUR to grow absolute EBITDA 130-145m EBITDA by 2020 We expect a period of softer top-line performance
Slide 20: In summary
First 9Months FY 2018 Results Presentation In summary… World-class product Customer value Growing market Industry structure and technology Mobile leader Scale Market leadership Investment Results 20
Slide 21: Appendix
Appendix • 9M Results Highlights • KPIs • Financial Results • Outlook • Appendix 21
Slide 22: Flight and Non-Flight Bookings
First 9Months FY 2018 Results Presentation FLIGHT AND NON-FLIGHT BOOKINGS Revenue diversification drives growth in Flight Business Flight - Bookings Flight In ‘000 +0% ▪ As guided to the market, 9M result was driven by: – Accelerated investment in the evolution in the change of our revenue model, an
Slide 23: Flight and Non-Flight Revenue Margin
First 9Months FY 2018 Results Presentation FLIGHT AND NON-FLIGHT REVENUE MARGIN Revenue diversification drives growth in Flight Business Flight – Revenue Margin Flight In € million +7% ▪ In 9M FY 2018, revenue margin performance driven by: +7% 274.3 294.6 – Bookings, already explained in previous sl
Slide 24: Core and Expansion Bookings
First 9Months FY 2018 Results Presentation CORE AND EXPANSION BOOKINGS Revenue diversification drives growth in the Expansion Markets Core- Bookings Core In ‘000 -6% 4,389 ▪ In 9M FY 2018, strategic initiatives on track and delivering the desired result, as guided 4,146 to the market at our full yea
Slide 25: Core and Expansion Revenue Margin
First 9Months FY 2018 Results Presentation CORE AND EXPANSION REVENUE MARGIN Revenue diversification drives growth in the Expansion Markets Core – Revenue Margin Core In € million -2% ▪ In 9M FY 2018, revenue margin performance driven by: – Bookings, already explained in previous slide. -8% 196.7 19
Slide 26: eDreams ODIGEO
eDreams ODIGEO
Slide 27: Glossary of Definitions
First 9Months FY 2018 Results Presentation Glossary of Definitions Non-reconcilable to GAAP measures "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 num
Slide 28: Glossary of Definitions
First 9Months FY 2018 Results Presentation Glossary of Definitions Other Defined Terms “Bookings” refers to the number of transactions under the agency model and the principal model as well as transactions made under white label arrangements. One Booking can encompass one or more products and one
Slide 29: Glossary of Definitions
First 9Months FY 2018 Results Presentation Glossary of Definitions Other defined terms Classic Customer Revenue represents customer revenue other than Diversification Revenues earned through flight service fees, cancellation and modification fees, tax refunds and mobile application revenue. Our ma