Slide 1: IR Call 1H2020 - lm holding
IR Call IR Call 1H2020 - lm holding CFO - Sergio Signoretti IRO - Niccolò Bossi Friday 31st July 12:30PM-1:30PM CET
Slide 2: Agenda
Agenda ● Context ● 1H2020 Performance ● COVID-19 main actions ● Main take-away
Slide 3: Our structure
Our structure Majority OTA META MEDIA Minority
Slide 4: Context
Context
Slide 5: The world stopped for nearly 3 months, and then only partially restarted
The world stopped for nearly 3 months, and then only partially restarted
Slide 6: Border restrictions have not yet been widely relaxed
Border restrictions have not yet been widely relaxed
Slide 7: 1H Financial Performance
1H Financial Performance
Slide 8: June rebound shows that we are doing well in intercepting the new travel demand
1H 2020 June rebound shows that we are doing well in intercepting the new travel demand +15% -80% -58% GROWTH PHASE CRYSIS PHASE RECOVERY PHASE Bookings 2019 -43% 2020 maximum -97% negative peak Weeks January February March April May June +22 %
Slide 9: June YtD revenues -50% vs last year
1H 2020 June YtD revenues -50% vs last year Revenues lm group Revenues OTA €m Mln€ Result net of intercompanies
Slide 10: Jun YtD EBITDA -87% vs last year
1H 2020 Jun YtD EBITDA -87% vs last year €m Not included corporate cost, BU Cruise carved out
Slide 11: Extraordinary items referring to cancellations impacted the result significantly
H1 2020 NET RESULT Extraordinary items referring to cancellations impacted the result significantly
Slide 12: Cash over €133m as a result of an attentive cash management strategy
H1 2020 Cash Flow Cash over €133m as a result of an attentive cash management strategy, despite difficulties in receiving money back from airlines 110.4 65.1 20.6% -49.5% (*) EBITDA IFRS doesn’t include positive effect of IFRS 16 for Eur 3.3M
Slide 13: COVID-19 - Main actions
COVID-19 - Main actions
Slide 14: secure cash = SECURE THE COMPANY
One Major Objective As the COVID-19 exploded through Europe our major objective has been to secure cash = SECURE THE Had to be done COMPANY within two weeks How to secure the group? 1 Cash protection program Massive endeavour of all the Group, involving Banks, government officials, suppliers, business
Slide 15: Cash Protection Program for approx €220m
Cash Protection Program for approx €220m 1 Cash protection program Action Amount 1 Draw all existing unused credit lines €42m 2 Negotiate new financings / Access government backed financings €50m 3 Reimburse our customers through vouchers where allowed €100m 4 Renegotiate payment terms to vendors €30m
Slide 16: Cash at the end of June amounts at 133M, with 67M of credit lines drawn
Cash at the end of June amounts at 133M, with 67M of existing/new credit lines drawn since the begin of COVID-19 impact
Slide 17: Company is secured, cash is at €133.1m, positive net financial position
1H 2020 Company is secured, cash is at €133.1m, with approx €90m debts vs banks. Positive Net Financial Position at €32.9m. €13.2m of IFRS 16 accounting effect included
Slide 18: Cost Protection Program defined in March to save €30m in 2020 vs 2019
Cost Protection Program defined in March to save €30m in 2020 vs 2019 2 Cost reduction plan Action Amount 1 Freezing Marketing Non Performance costs €4m 2 OPEX savings related to IT, Overhead and Travel and Event costs €5m 3 Freezing hirings from 2Q €2m 4 Working hours reduction + Local government we
Slide 19: Fixed Cost base 20% cost reductions vs. last year on a 6 months basis
lm group Fixed Cost base 20% cost reductions vs. last year on a 6 months basis Mln€ Travel, Training&Events €-0.8m lower expenses vs. LY due to the freezing of all activities during the lockdown period Overhead €-0.3m vs. LY mainly due to the Office cost related reduction (Food&Beverage, Materials, Re
Slide 20: Actions taken and structural operating leverage resulted in a strong cost reduction
lm group Actions taken and structural operating leverage, resulted in a strong cost reduction Fixed Cost Base comparison Fixed & Variable Cost comparison March vs. March 2Q vs. 2Q this strong decrease leaded to a better Gross Margin contribution 2019 2020 43% 59%
Slide 21: Main take-away
Main take-away
Slide 22: Equipped to navigate the waves and manage the new-normality properly
Equipped to navigate the waves and manage the new-normality properly 1 Performance is good compared to market average 2 High operating leverage as a key to handle such an uncertain scenario 3 Solid balance sheet ensures sustainability of the business 4 Multiproduct proposition guarantees flexibility
Slide 23: THANKS
& v THANKS