On The Beach Group Plc · LSE:OTB
On The Beach — FY2022 Earnings Presentation
21 slides from On The Beach's earnings presentation, Dec 8, 2022
Slide 1: FY22 Results Presentation
FY22 RESULTS PRESENTATION Our vision is to become Europe’s leading online retailer of beach holidays 8 December 2022
Slide 2: Agenda and Cautionary Statement
AGENDA FY22 Financial Performance CAUTIONARY STATEMENT Shaun Morton - CFO This presentation may contain certain forward-looking statements with respect to the financial condition, results, operations and businesses of the Company. Forward looking statements are sometimes, but not always, identified
Slide 3: Shaun Morton, CFO: FY22 Financial Performance
Shaun Morton Chief Financial Officer FY22 Financial Performance
Slide 4: FY22 Overview
FY22 Overview ➢ The Group achieved booked TTV growth of 15.5% vs FY19 (259% up vs FY21), despite disruption and a proportion of our addressable audience being held captive to other operators this year ➢ Early H1 trading was heavily disrupted by the emergence of the Omicron variant, with consumer dem
Slide 5: Rapid recovery in premium versus 3* since travel restrictions eased
Rapid recovery in premium versus 3* since travel restrictions eased Group TTV Growth 80% vs FY19 vs FY22 ➢ Group TTV up 15.5% vs FY19, despite heavily disrupted trading in H1 60% and ongoing disruption across the travel supply chain in H2 40% 20% ➢ 82% increase in TTV for premium holidays with 5* ho
Slide 6: Monthly TTV consistently ahead of pre Covid-19 trading since March
Monthly TTV consistently ahead of pre Covid-19 trading since March Group Travelled TTV £m Winter 21/22 down (2%) v FY19 Summer 22 up +19% v FY19 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct FY19 FY22/23 6
Slide 7: Profit and Loss Account – Group
Profit and Loss Account – Group FY22 FY21 Change FY19 3 YoY % % ➢ Bookings +247% YOY and (12%) vs FY19 Bookings '000 478.6 137.7 247% 544.5 (12.1%) ➢ H1 disrupted by emergence of Omicron Booked TTV £'m 856.1 238.3 259% 741.4 15.5% ➢ Market recovery began mid-January as restrictions eased FY22 FY21 C
Slide 8: Profit and Loss Account – OTB Segment
Profit and Loss Account – OTB Segment FY22 FY21 Change FY19 3 YoY % % ➢ Adjusted Revenue of £86.9m, an increase of £64.8m vs FY21 Bookings '000 452.6 129.2 250% 522.4 (13%) ➢ Revenue stated net of holiday perks costs Booked TTV £'m 762.7 204.2 274% 671.5 14% ➢ Total brand and marketing investment of
Slide 9: Profit and Loss Account – B2B segments
Profit and Loss Account – B2B segments CCH FY22 FY21 Change FY19 3 YoY % B2B Overview % % ➢ B2B TTV up 45% versus FY19, despite a slower recovery on the high Bookings '000 8.2 3.2 155% 12.5 (34%) street and a higher proportion of captive customers across B2B Booked TTV £'m 55.6 23.2 140% 55.0 1% ➢ B
Slide 10: Balance Sheet
Balance Sheet FY22 FY21 £m £m ➢ Seasonal cash flow requirements are covered by a revolving credit facility (RCF) which is drawn down as required Intangible assets 74.3 74.1 Tangible assets 9.1 8.3 ➢ At 30 September 2022, Cash was £64.5m (30 September 2021: £56.0m) Other Assets 0.6 - Deferred Tax 3.4
Slide 11: Cash Flow
Cash Flow FY22 FY21 Change £m £m % ➢ At 30 September 2022, Cash was £64.5m (30 September 2021: £56.0m) Profit/(Loss) Before Tax 2.1 (36.7) (106%) ➢ Total cash balances including amounts held in trust of £133.9m Adjustments for: Depreciation and amortisation 12.8 11.9 ➢ The Group generated £21.9m of
Slide 12: Simon Cooper, CEO: Strategy
Simon Cooper Chief Executive Officer Strategy
Slide 13: Growth Strategy
Growth Strategy Core: Grow share of UK Value Expansion: Attract the widest possible audience of UK beach holidaymakers Vision: Build Europe’s leading beach holiday retailer Online / B2C Offline / B2B Invest in Talent 19m Total UK market: pax 19m pax 1 Long Expansion Drive +4m pax Haul = Brand (Onlin
Slide 14: Premium – a significant expansion opportunity
Premium – a significant expansion opportunity Resilient segment, high earnings visibility and profitability Short haul online beach market: OTB rationale for penetrating Premium: Market size (pax): 9m Significant incremental revenue opportunity Market TTV: £6.5bn Segment of market recovering q
Slide 15: Brand activity
Brand activity Grow brand traffic and consideration Top 3 Consideration and Spontaneous Awareness Enhanced FY22 proposition: 27% £5m investment in FY22 (nil in FY19) 25% 22% Free airport fast track for all customers Free lounge for customers booking premium holidays in S22 16% Created the
Slide 16: Invest in talent and technology to extend core capabilities
Invest in talent and technology to extend core capabilities Evolving our platform will allow us to take advantage of opportunities in core and expansion areas Created conditions to support the attraction, development and retention of talent, and support flexible working for all colleagues Re-pla
Slide 17: Supply
Supply Leverage existing capabilities to further optimise supply Direct contracting – share of hotel sales 100% Direct bookings in FY22 at 89%, up from 70% in FY19: 90% 80% ― Margin benefit vs 3rd party bedbanks 70% ― Improved customer and supplier experience 60% ― Mitigated the S22 airline disrup
Slide 18: Expansion opportunities: B2B
Expansion opportunities: B2B A huge opportunity exists to attract a wider audience of beach holidaymakers B2B Booked TTV Growth 100% vs FY19 vs FY22 Overview: 80% ― Despite the slow restart and high %ge of captive customers, FY22 was a record 60% year 40% ― Total B2B TTV was up 45% vs FY19 20% ― N
Slide 19: Expansion opportunities: LH and International
Expansion opportunities: LH and International A huge opportunity exists to attract a wider audience of beach holidaymakers Long Haul Booked TTV Growth 500% vs FY19 vs FY22 LH overview 400% ― Benefitted from improvements to OTB's proposition (including FT and FL) 300% ― B2B distribution also suppor
Slide 20: Current trading and outlook
Current trading and outlook ➢ FY22 was heavily disrupted by Omicron, the war in Ukraine, escalating cost of living and significant proportion of captive holidaymakers ➢ We successfully invested into our platform and our brand to deliver record TTV and growth in share in premium, B2B and long haul ➢
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