Edreams Odigeo · BME:EDR
Edreams Odigeo — Q2 FY2021 Earnings Presentation
46 slides from Edreams Odigeo's earnings presentation, Nov 19, 2020
Slide 1: Results Report 2Q FY 2021
RESULTS REPORT 2Q FY 2021 19th November 2020 eDreams ODIGEO
Slide 2: Index
eDreams ODIGEO INDEX 1. A brief look at eDreams ODIGEO and KPIs 2. Business Performance 3. Financial Review 4. Other information 5. Condensed Consolidated Interim Financial Statements and Notes 6. Glossary 7. Reconciliation eDreams ODIGEO 2
Slide 3: A brief look at eDreams ODIGEO and KPIs
eDreams ODIGEO 1. A brief look at eDreams ODIGEO and KPIs 1.1 KPIs 1.2 Results Highlights 1.3 Current Trading, Strategy Update & Outlook 3
Slide 4: KPIs
eDreams ODIGEO 1.1 KPIs 57% 32% 664k 26% 45 17M k Prime Mobile European OTA Members Prime share Markets Customers Bookings flight market share YoY +71% of Bookings (From 45%) (From 389k) (from 7%) 56% 87% 667 2.1M+ 274k+ 1.7 Billion Airlines Hotels Flight routes Monthly searches -48pp (*) Acquisitio
Slide 5: Results Highlights and Current Trading, Strategy Update & Outlook
eDreams ODIGEO 1.2 RESULTS HIGHLIGHTS 1.3 CURRENT TRADING, STRATEGY Improved performance as market picked up significantly in 2Q, yet renewed softening towards UPDATE & OUTLOOK the end of the quarter. Short term trading affected by travel restrictions Current trading shows short term outlook affecte
Slide 6: Liquidity and Prime performance
eDreams ODIGEO Strong liquidity is a consequence of strong business model and active management of the Prime is performing strongly in a weak market situation Key highlights of Prime performance Key highlights of liquidity performance Prime subscription and share of prime continue to grow Strong
Slide 7: Cancelled flights management and In Summary
eDreams ODIGEO During this times of high airline cancellations we have focused on the customer In Summary Key highlights of cancelled flights management Our business is strong and we are positioning to be a winner from the crisis. 92% cancelled flights have been resolved and/or processed. We h
Slide 8: Business Performance
eDreams ODIGEO 2. Business Performance 2.1 Business Review 2.2 Product 2.3 Geography 2.4 KPIs 8
Slide 9: Business Review
eDreams ODIGEO 2.1 BUSINESS REVIEW 48% in 2Q last year, rising 7 and 8 percentage points in just one year. PRODUCT Prime is performing strongly in a weak market. Prime subscription rate and share of total -70% 56% 87% €21M 57% Acquisition Bookings continue to grow. The number of subscribers have inc
Slide 10: Product: Revenue Margin diversification
eDreams ODIGEO 2.2 PRODUCT Diversification Revenue is more resilient than our Classic Customer Revenue DIVERSIFICATION Revenue Margin (€ million) 2Q Var 2Q 1H Var 1H FY 2 1 vs FY 2 1 vs -70% FY 2 1 FY 2 0 FY 2 0 FY 2 1 FY 2 0 FY 2 0 69.9 Diversification 20.6 - 70% 69.9 31.3 - 78% 142.1 20.6 Classic
Slide 11: Geography: Revenue Margin
eDreams ODIGEO 2.3 GEOGRAPHY Revenue diversification by Geography remains stable Revenue Margin (€ million) TOP 6 2Q Var 2Q 1H Var 1H FY 2 1 vs FY 2 1 vs FY 2 1 FY 2 0 FY 2 0 FY 2 1 FY 2 0 FY 2 0 France 11.8 - 67% 36.1 17.5 - 77% 74.8 -74% 106.0 Spain + Italy 6.4 - 78% 29.5 9.2 - 84% 56.6 Germany, N
Slide 12: KPIs
eDreams ODIGEO 2.4 KPIs Revenue diversification ratio (*) Customer repeat booking rate (annualised) (*) +8 +3 (**) pp pp 56% 49% 48% 46% 41% 44% 22% 2Q FY19 2Q FY20 2Q FY21 2Q FY19 2Q FY20 2Q FY21 Product diversification ratio (*) Acquisition cost per booking index +7 pp 87% -48pp 80% 64% 100 2Q FY1
Slide 13: Financial Review
3. Financial Review 3.1 Summary Income Statement 3.2 Summary Balance Sheet 3.3 Summary Cash Flow Statement 3.4 Efficient Debt Management
Slide 14: Summary Income Statement and Balance Sheet
eDreams ODIGEO 3.1 SUMARY INCOME STATEMENT 3.2 SUMMARY BALANCE SHEET 2Q Var 2Q 6M Var 6M 30th Sept 30th Sept FY21 vs FY121vs (in € million) 2020 2019 FY21 FY20 FY21 FY20 (in € million) FY20 FY20 Revenue margin 34.4 -75% 139.7 51.0 -82% 281.2 Total fixed assets 973.7 1,054.2 Variable costs (*) -22.9
Slide 15: Summary Cash Flow Statement and Efficient Debt Management
eDreams ODIGEO 3.3 SUMMARY CASH FLOW STATEMENT 3.4 EFFICIENT DEBT MANAGEMENT 2Q 2Q 6M 6M In 2Q FY21, despite increasing travel restrictions and acceleration of reimbursements to customers, the (in € million) FY21 FY20 FY21 FY20 Group continues to have a strong balance sheet, with liquidity position
Slide 16: Other information
eDreams ODIGEO 4.1 SHAREHOLDER INFORMATION The subscribed share capital of eDreams ODIGEO at September 2020 is €11,878 thousand divided into 118,781,530 shares with a par value of ten euros cents (€0.10) each, all of which are fully paid. As of 30th of September 2020 the Group had 9,182,437 shares i
Slide 17: Condensed Consolidated Interim Financial Statements and Notes
5. Condensed Consolidated Interim Financial Statements and Notes For the six-month period ended 30th September 2020 eDreams ODIGEO 17
Slide 18: Condensed Consolidated Interim Income Statement
eDreams ODIGEO Condensed Consolidated Interim Income Statement Condensed Consolidated Interim Statement of Other Comprehensive Income Unaudited Unaudited (Thousands of euros) Notes Unaudited Unaudited 6 months ended 6 months ended 6 months ended 6 months ended th 30 September 2020 th 30 September 20
Slide 19: Condensed Consolidated Interim Balance Sheet Statement
eDreams ODIGEO Condensed Consolidated Interim Balance Sheet Statement (Thousands of euros) ASSETS Notes Unaudited Audited EQUITY AND LIABILITIES Notes Unaudited Audited th st th st 30 September 2020 31 March 2020 30 September 2020 31 March 2020 Goodwill 12 655,507 654,746 Share capital 11,878 11,046
Slide 20: Statement of Changes in Equity and Cash Flow Statement
eDreams ODIGEO Condensed Consolidated Interim Statement of Condensed Consolidated Interim Changes in Equity Cash Flow Statement (Thousands of euros) Notes Unaudited Unaudited 6 months ended 6 months ended th th (Thousands of euros) Notes Share Share Other Treasury Profit & Foreign Total 30 September
Slide 21: Notes: General Information
eDreams ODIGEO affected employees effectively receive 90% of their net remuneration. Notes to the Condensed Consolidated Interim On 30th September 2020 the ERTE affects 681 employees of the Company, 64% of its global workforce. The Financial Statements ERTE does not apply to some collectives, such a
Slide 22: Basis of Presentation
eDreams ODIGEO 2.5 IATA change in remittance period 3. BASIS OF PRESENTATION On 23rd and 24th September 2019, IATA announced to travel agents in Spain and Italy the elimination of the one-month remittance period which has prevailed in these countries, to 10 days in Spain and 15 days in 3.1 Accountin
Slide 23: New Standards and Use of Estimates
eDreams ODIGEO or to suspend operations altogether. - Other operating expenses was down 76% year-on-year, as a large portion is variable costs directly related to volume of Bookings (see note 10). Further, these measures have materially adversely affected, and may further affect travelers’ behaviour
Slide 24: Earnings per Share and Seasonality
eDreams ODIGEO assets, purchase price allocation and allocation of goodwill, impairment testing of the recoverable amount, accounting for income tax, analysis of recoverability of deferred tax assets, and accounting for provisions 5. EARNINGS PER SHARE and contingent liabilities. The basic earnings
Slide 25: Segment Information
eDreams ODIGEO 6. SEGMENT INFORMATION Unaudited 6 months ended 30th September 2019 The Group reports its results in geographical segments based on how the Chief Operating Decision Maker (CODM) manages the business, makes operating decisions and evaluates operating performance. For each France Southe
Slide 26: Revenue Margin and Personnel Expenses
eDreams ODIGEO 7. REVENUE MARGIN 8. PERSONNEL EXPENSES The Group disaggregates revenue from contracts with customers by source of revenue, as management 8.1 Personnel expenses believe this best depicts how the nature, amount, timing and uncertainty of the Group’s revenue and cash flows are affected
Slide 27: Other Operating Expenses and Depreciation
eDreams ODIGEO 8.2 Number of employees 10. OTHER OPERATING EXPENSES Unaudited Unaudited The average number of employees by category of the Group is as follows: Unaudited Unaudited 6 months ended 6 months ended th th 30 September 2020 30 September 2019 6 months ended 6 months ended th th 30 September
Slide 28: Financial Income and Expense; Goodwill
eDreams ODIGEO 11. FINANCIAL INCOME AND EXPENSE 12. GOODWILL Unaudited Unaudited The detail of the goodwill movement by markets for the six-month period ended 30th September 2020 is set 6 months ended 6 months ended out below: th 30 September 2020 th 30 September 2019 Audited Exchange rate Unaudited
Slide 29: Trade Receivables and Other Intangible Assets
eDreams ODIGEO The detail of the goodwill movement by markets for the six-month period ended 30th September 2019 is set The detail of the other intangible assets movement for the six-month period ended 30th September 2019 is out below: set out below: Audited Unaudited 320,038 Exchange rate Balance a
Slide 30: Equity
eDreams ODIGEO 15. EQUITY 15.4 Treasury shares Unaudited Audited Number of shares Thousand of euros th st Treasury shares at 31st March 2020 (Audited ) 1,081,466 3,320 30 September 2020 31 March 2020 Capital increase 8,318,487 832 Share capital 11,878 11,046 Delivered to employees (217,516) (22) th
Slide 31: Share-Based Compensation
eDreams ODIGEO As at 30th September 2019, the Group had 40,559 treasury shares under the liquidity contract, carried in equity at €160 thousand, at an average historic price of €3.957 per share. These shares corresponded to The movement of the Potential Rights during the period is as follows: acquis
Slide 32: Financial Liabilities
eDreams ODIGEO 16.2 2019 Long-Term Incentive Plan 17. FINANCIAL LIABILITIES On 19th June 2019, the Board of Directors of the Company approved a new Long-Term Incentive Plan ("2019 LTIP") to ensure that it continues to attract and retain high-quality management and better align the The Group debt and
Slide 33: Debt by Maturity Date
eDreams ODIGEO Super Senior Revolving Credit Facility 17.1 Debt by maturity date On 4th October 2016, the Group refinanced its Super Senior Revolving Credit Facility (“the SSRCF”), increasing the size to €147 million from the previous €130 million, and gaining significant flexibility as well The mat
Slide 34: Fair Value Measurement of Debt
eDreams ODIGEO 17.2 Fair value measurement of debt Audited < 1 year 1 to 5 years > 5 years Total 31st March 2020 Unaudited Total net Level 1 : Level 2 : Level 3 : Fair value 30th September 2020 book value Quoted Internal Internal of the class prices and model using model using 2023 Notes - Principal
Slide 35: Provisions, Off-Balance Sheet Commitments, Related Parties
eDreams ODIGEO The market value of financial assets and liabilities measured at fair value in the statement of financial position shown in the table above has been ranked based on the three hierarchy levels defined by IFRS 13: 19. OFF-BALANCE SHEET COMMITMENTS ⋅ Level 1: quoted price in active marke
Slide 36: Contingencies and Provisions
eDreams ODIGEO shares (the First Tranche, Second Sub-tranche, Second Delivery), 238,154 shares (the First Tranche, Second Sub-tranche, Third Delivery) and 137,347 shares (the Second Tranche, First Delivery) have already been 21. CONTINGENCIES AND PROVISIONS delivered as shares to Key Management in A
Slide 37: Subsequent Events
eDreams ODIGEO administrative court. As the risk is considered only possible, no liability has been recognized in the balance sheet. 22. SUBSEQUENT EVENTS The Italian company has appealed with the Italian court against a €10 million assessment of Italian 22.1 Delivery of treasury shares withholding
Slide 38: Consolidation Scope
eDreams ODIGEO 23. CONSOLIDATION SCOPE As at 30th September 2020 the companies included in the consolidation are as follows: Name Location / Registered Office Line of business % interest % control eDreams ODIGEO S.A. 4, rue du Fort Wallis, L-2714 (Luxemburg) Holding Parent company 100% 100% Opodo Li
Slide 39: Glossary
eDreams ODIGEO 6. Glossary 39
Slide 40: Glossary of Definitions
eDreams ODIGEO Glossary of definitions (Free) Cash Flow before financing means cash flow from operating activities plus cash flow from investing activities. Alternative Performance Measure Gross Financial Debt means total financial liabilities considering financing cost capitalized plus accrued inte
Slide 41: Other Defined Terms
eDreams ODIGEO Fixed Costs includes IT expenses net of capitalization write-off, personnel expenses which are not Variable Other defined terms Costs, external fees, building rentals and other expenses of fixed nature. Our management believes the Adjusted Items refers to share-based compensation, res
Slide 42: Reconciliation
eDreams ODIGEO 7. Reconciliation 42
Slide 43: Reconciliation of APM & Other Defined Terms
eDreams ODIGEO Reconciliation of APM & Other Defined Terms Revenue Margin, Revenue Margin per booking, Diversification (Thousands of euros, figures for the periods ended on September 2020 and September 2019) revenue EBIT, EBITDA, Adjusted EBITDA Unaudited Unaudited 6 months ended 6 months ended th t
Slide 44: Fixed Cost, Variable Cost, Gross and Net Financial Debt
eDreams ODIGEO Fixed Cost, Variable Cost, Adjusted items Gross Financial Debt, Net Financial Debt Restated Unaudited Audited Unaudited Unaudited th 30 September 2020 st 31 March 2020 6 months ended 6 months ended th th 30 September 2020 30 September 2019 Non-current financial liabilities 488,666 489
Slide 45: Adjusted Net Income
eDreams ODIGEO Adjusted Net Income Unaudited Unaudited 6 months ended 6 months ended th th 30 September 2020 30 September 2019 Net Income (45,159) 11,492 Adjusted items (included in EBITDA) 2,445 10,221 Loss on transfer of Barcelona customer service assets - 489 Tax effect of the above adjustments (
Slide 46: Responsibility Statement
eDreams ODIGEO S.A. Luxembourg, 17th November 2020 In representation of The Board of Directors eDreams ODIGEO Societé Anonyme 4, rue du Fort Wallis L – 2714 Luxembourg Grand Duchy of Luxembourg Dana Dunne CEO RESPONSIBILITY STATEMENT We confirm that to the best of our knowledge that: ………………………………………