Edreams Odigeo · BME:EDR
Edreams Odigeo — 9M FY2015-16 Earnings Presentation
41 slides from Edreams Odigeo's earnings presentation, Feb 25, 2016
Slide 1: Investor presentation
Quarter ended December 31st 2015 Investor presentation February 25th 2016
Slide 2: Disclaimer
Disclaimer Certain statements included or incorporated by reference within this presentation may constitute “forward-looking statements” in respect of the Group’s operations, performance, prospects and/or financial condition and the industry in which the Group operates. By their nature, forward-lo
Slide 3: Agenda
AGENDA 9 Months Results Highlights Industry Overview & Strategic Developments Financial Analysis Outlook Appendix 2 9M 2015-16 Results Presentation
Slide 4: Results Highlights
Results Highlights Solid results with growth in bookings, revenue margin & EBITDA Cash flow in line with historical seasonality pattern Strategic initiatives on track and delivering improved performance Improved business proposition and business model Benefits from channel mix optimisation Customer
Slide 5: Strategy delivering solid results in all magnitudes
Strategy delivering solid results in all magnitudes Competitive landscape remains stable Bookings growth accelerating in all Core markets Flight revenue growth stable and non-flight improving Mobile channel bookings continue growing Continue to grow market share Bookings Revenue Margin Adj
Slide 6: Strategy delivering strong growth in adjusted EBITDA
Strategy delivering strong growth in adjusted EBITDA Adjusted EBITDA quarterly Evolution Improvement in product starting YoY variation to pay off Individual channel improvement Growth adjusted for no bonus payment and micro pricing actions paying last year. 100% off accrual this year Growth in
Slide 7: Flight and Non-flight bookings: Strong growth in the flight business and non-flight trend improving
Flight and Non-flight bookings: Strong growth in the flight business and non-flight trend improving Flight Flight bookings trend continues improving YoY variation Progress in strategic initiatives continues +20% Flight bookings growth delivering strong growth in bookings, +16% +15% +16% Non-Flight
Slide 8: Flight and Non-flight revenue margin: Stable growth in flight and trend improving in non-flight
Flight and Non-flight revenue margin: Stable growth in flight and trend improving in non-flight Flight - Revenue Margin Flight In € million +7% 266.1 249.4 Revenue margin growth remains stable at +6% in the first nine months of FY 15-16 +6% Revenue margin per booking decreasing as a 77.6 82.6 re
Slide 9: Core and Expansion bookings: Core back to positive growth for second consecutive quarter
Core and Expansion bookings: Core back to positive growth for second consecutive quarter Core Core bookings trend continues improving YoY variation Core bookings trend continues to improve Core bookings growth − All 3 markets within Core growing in Expansion bookings growth +30% +26% +25% bookings
Slide 10: Core and Expansion revenue margin: Revenue trajectory improving in all our Core markets
Core and Expansion revenue margin: Revenue trajectory improving in all our Core markets Core Markets - Revenue Margin In € million Core -3% 188.3 182.2 Significant improvement in the revenue trajectory. -1% − From (-5%) in Q2 to only (-1%) in Q3. 55.4 54.6 Q3 Q3 9M 9M Dec-14 Dec-15 Dec-14 Dec-15 R
Slide 11: Agenda
AGENDA 9 Months Results Highlights Industry Overview & Strategic Developments Financial Analysis Outlook Appendix 10 9M 2015-16 Results Presentation
Slide 12: Industry Overview: Faster European Online and OTA travel market penetration
Industry Overview: Faster European Online and OTA travel market penetration European travellers continue to adopt digital Faster European online travel penetration… channels for travel booking 55% 52% 47% 50% In 2015 Europe becomes for the first time the 45% 43% 40% 45% 45% largest online adopte
Slide 13: Industry Overview: Global OTAs winning share vs Supplier-Direct and local players
Industry Overview: Global OTAs winning share vs Supplier-Direct and local players OTAs expected to continue gaining European Online Travel Market, OTA vs. Supplier-Direct Share 2015 & 2017 share 2015 2017E Local OTAs fighting against the market power of the top three global OTAs Supplier-Direct
Slide 14: Strategic progress – overview
Strategic progress – overview 1 Traffic source (channel mix) Consolidated our global traffic acquisition performance and ROI improvements initiated in Q1 Growth in bookings of 14% while reducing variable costs per bookings by 10% in Q3 2 Mobile Mobile bookings now accounting for 25% of total f
Slide 15: Traffic source (Channel Mix) Optimisation
Traffic source (Channel Mix) Optimisation In Q3 we have been consolidating our Variable costs per booking In Euros global traffic acquisition 30.0 29.0 performance and ROI improvement 28.0 27.5 26.8 initiated in Q1 25.0 Continued focusing on operational excellence on a per channel basis, 22.5 dr
Slide 16: Strong growth in Mobile Bookings. As a % of total bookings well ahead European industry average
Strong growth in Mobile Bookings. As a % of total bookings well ahead European industry average Flight Mobile bookings One Front + New Functionalities As a % of flight bookings eDreams 30% Android launch Opodo 25% across all 25% Go Voyages brands 24% 20% iOS Apps Live 18% 18% 18% 20% +8pp 15% 15% 17
Slide 17: Customer Experience and client satisfaction improving significantly
Customer Experience and client satisfaction improving significantly Significant improvements in handling of Significant improvement in the contact rate of service calls and e-mails customers Help Centre live on 13 websites, including all core markets. New contact centre platform live in all loca
Slide 18: Culture & Talent: Reinforcing the team’s talent to significantly improve the business
Culture & Talent: Reinforcing the team’s talent to significantly improve the business PRODUCT, MARKETING, MOBILE, SUPPLIERS… 17 9M 2015-16 Results Roadshow
Slide 19: Agenda
AGENDA 9 Months Results Highlights Industry Overview & Strategic Developments Financial Analysis Outlook Appendix 18 9M 2015-16 Results Presentation
Slide 20: Income statement - Highlights
Income statement - Highlights Over the third quarter, main YoY Q3 Q3 Q3 Var 9M 9M Var evolutions reflect: Dec-14 Dec-14 Dec-15 (vs Dec-14 Dec-15 (vs Old Restated restated) Restated restated) Higher variable costs driven by (In € million) higher bookings. On a per booking basis, variable costs are
Slide 21: Adjusted Net Income
Adjusted Net Income Q3 Q3 Q3 Var 9M 9M Var Dec-14 Dec-14 Dec-15 (vs Dec-14 (vs Dec-15 restated) Old Restated restated) (In € million) Restated Net income (6.9) (7.2) 1.6 N.A. (7.5) 6.5 N.A. Non-recurring items 8.9 8.9 1.2 (87)% 9.1 5.4 (40)% Amortisation impact related to the move of Barcelona offic
Slide 22: Cash flow statement - Highlights
Cash flow statement - Highlights Q3 Q3 9M 9M Dec-14 Dec-14 Over the third quarter of our financial year, main YoY Restated Dec-15 Restated Dec-15 evolutions reflect: (In € million) Operating cash outflow of €27.8 million Adjusted EBITDA 18.6 19.7 62.5 64.1 − Negative change in working capital in l
Slide 23: Debt cover ratio leaves us plenty of headroom and stable interest coverage ratio
Debt cover ratio leaves us plenty of headroom and stable interest coverage ratio Total Debt Coverage Ratio (Total Net Debt(1) / LTM EBITDA) Debt Details 7 (million Principal Rating Maturity euros) 6 x LTM Adj. EBITDA 5 1.77x Corporate Moodys:B2 Family S&P: B 4 Rating 3 6.00x 2 4.23x 2018 Notes 325 M
Slide 24: Agenda
AGENDA 9 Months Results Highlights Industry Overview & Strategic Developments Financial Analysis Outlook Appendix 23 9M 2015-16 Results Presentation
Slide 25: Outlook Update 2015-16
OUTLOOK Update 2015-16 Strategic initiatives on track and delivering results Full year guidance raised IMPLIED OLD NEW GROWTH Bookings > 9.7 million 10.3-10.6 Mn +6% to +9% Revenue margin (€) >€436 million €445-455 Mn +2% to +4% Adjusted EBITDA (€) €91-94 million €93-95 Mn +3% to +5% − Adjusting
Slide 26: Closing remarks – Why invest in eDreams?
Closing remarks – Why invest in eDreams? Attractive Industry Online Leisure Travel is the #1 Flight Retailer in Europe largest e-Commerce category Growing market share Faster European Online Travel Global presence – 44 countries penetration Scale & Technology Platform Continued shift from offline to
Slide 27: Agenda
AGENDA 9 Months Results Highlights Industry Overview & Strategic Developments Financial Analysis Outlook Appendix 26 9M 2015-16 Results Presentation
Slide 28: KPI historic evolution – eDreams ODIGEO
KPI historic evolution – eDreams ODIGEO Before change in revenue After change in revenue recognition recognition FY FY PF FY PF PF PF PF FY PF YTD YTD YTD 2013/14 Jun-14 Sep-14 Dec-14 Mar-15 2014/15 2013/14 Jun-14 Sep-14 Dec-14 Mar-15 2014/15 Jun-15 Sep-15 Dec-15 Dec-14 Dec-15 Dec-15 Number of booki
Slide 29: Quarterly impact of change in revenue recognition
Quarterly impact of change in revenue recognition Revenue margin 500.0 428.6 429.5 436.2 436.0 140.0 450.0 118.8 121.2 400.0 87.9 87.6 112.3 110.3 80.8 81.8 120.0 107.6 107.3 22.2 350.0 97.4 97.2 19.9 100.0 21.9 21.5 26.3 24.3 300.0 in € million 19.8 19.6 in € million 80.0 250.0 200.0 60.0 347.8 347
Slide 30: Variable and fixed costs
Variable and fixed costs Variable costs per booking Variable costs lower compared to last year as 35 strategic initiatives start to pay off on our 30.6 30.0 30.2 marketing costs 29.0 29.5 30 Fixed costs per booking slightly above last in € per booking 25 27.9 28.0 28.0 year notably since last ye
Slide 31: Balance sheet - Highlights
Balance sheet - Highlights Dec-14 Versus last year, main changes relate to: (In € million) Dec-15 Restated The impairment of €178m which occurred in Goodwill 875.7 728.8 March 2015 which impacted both Goodwill and brand Other fixed assets 314.7 300.3 Total fixed assets 1,190.4 1,029.1 Other change
Slide 32: Working capital - Highlights
Working capital - Highlights Quarterly working capital Dec.14 Mar.15 Jun.15 Sep.15 Dec.15 - (50) (100) (184.6) (189.7) in € million (246.9) (247.6) (236.1) (150) (200) (33.4) (28.5) (250) (218.0) (29.5) (218.2) (31.8) (30.7) (300) (265.6) (278.6) (278.3) Working capital Non current deferred income S
Slide 33: Net debt information
Net debt information Net debt excl. capitalization of financing costs GEO Travel Finance Undrawn revolving credit Dec.14 Mar.15 Jun.15 Sep.15 Dec.15 Dec.14 Mar.15 Jun.15 Sep.15 Dec.15 facilities end of December - 2015 (100) In € million (200) (300) (400) (347.1) (348.2) (362.4) (346.8) (348.1) (36
Slide 34: Net debt analysis
Net debt analysis Dec-14 Mar-14 Jun-15 Sep-15 Dec-15 2019 Notes (129.0) (129.0) (129.0) (129.0) (129.0) 2018 Notes (325.0) (325.0) (325.0) (325.0) (325.0) Revolving Credit Facilities - - - - - Accrued interest (12.4) (9.6) (12.4) (9.6) (12.4) Other debts (finance lease, overdrafts, etc.) (4.4) (5.0)
Slide 35: Non recurring items
Non recurring items Q3 Q3 9 months 9 months Dec-14 Dec-15 Dec-14 Dec-15 LTI plan - 0.6 - 1.8 Exceptional consultancy fee - - 1.3 Restructuring costs 8.6 0.1 8.6 0.9 Selective contract terminations - - 0.7 1.0 Penalties related old Barcelona office - 0.5 - 0.5 Other non recurring items 0.2 0.4 (0.1)
Slide 36: Geo Travel Finance (1/2)
Geo Travel Finance (1/2) INCOME STATEMENT BALANCE SHEET 9M (In € million) 9M Dec-14 Dec-14 Var Dec-15 Dec-15 (In € million) Restated Restated Bookings 7,095 7,818 10% Goodwill 875.7 728.8 Other fixed assets 321.1 306.6 Revenue margin 314.8 334.4 6% Total fixed assets 1,196.8 1,035.5 Variable costs (
Slide 37: Geo Travel Finance (2/2)
Geo Travel Finance (2/2) CASH FLOW STATEMENT COVENANT CALCULATION 9M (In € million) 9M Dec-14 TOTAL DEBT COVER RATIO (TOTAL NET DEBT / LTM Dec-15 Restated Adj. EBITDA) Adjusted EBITDA 63.2 65.2 Total Net Debt(*) Non recurring items (9.6) (6.9) 4.23x Non operating / non cash items (2.0) (0.5) LTM Adj
Slide 38: Consolidated financial statements – Profit & Loss
Consolidated financial statements – Profit & Loss eDreams eDreams eDreams Geo Travel Geo Travel Geo Travel Consolidated Income statement ODIGEO ODIGEO ODIGEO Finance Finance Finance YTD YTD YTD Dec. 2014 YTD YTD Dec. 2014 YTD In € thousand Dec. 2015 RestatedRestated Dec. 2014 Dec. 2015 Restated Dec.
Slide 39: Consolidated financial statements – Balance Sheet
Consolidated financial statements – Balance Sheet eDreams eDreams Geo Travel Geo Travel eDreams eDreams eDreams eDreams Consolidated balance sheet Consolidated balance sheet ODIGEO ODIGEO Finance Finance ODIGEO ODIGEO ODIGEO ODIGEO 31 Dec. 2014 31 Dec. 2014 31 Dec. 2014 31 Dec. 2014 In € thousand 31
Slide 40: Consolidated financial statements – Cash Flow
Consolidated financial statements – Cash Flow eDreams eDreams eDreams Geo Travel Geo Travel Geo Travel Consolidated statement of cash flows ODIGEO ODIGEO ODIGEO Finance Finance Finance YTD YTD YTD Dec. 2014 YTD YTD Dec. 2014 YTD In € thousand Dec. 2015 Restated Dec. 2014 Dec. 2015 Restated Dec. 2014
Slide 41: eDreams ODIGEO
eDreams ODIGEO