Edreams Odigeo · BME:EDR
Edreams Odigeo — Q1 FY2020 Earnings Presentation
34 slides from Edreams Odigeo's earnings presentation, Aug 29, 2019
Slide 1: Results Report 1Q FY 2020
RESULTS REPORT 1Q FY 2020 29th August 2019 “Revolutionize the online travel booking sector moving from transaction to subscription model through our unique subscription program Prime, which offers the ability to engage with the customer throughout the full travel journey” 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. Consolidated 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 CEO’s Quote 1.4 Outlook 3
Slide 4: KPIs
eDreams ODIGEO 1.1 KPIs €28.1M 2.9M €141.5M €9.0M 46% 76% Bookings Revenue Diversification Product Adjusted YoY -1% Margin Adjusted Revenue Diversification EBITDA (From 3.0M) YoY +5% Net Income +8pp Ratio YoY +8% (From €134.6M) YoY +58% (From 38% of total) +16pp (From 60%) (From €26.1M) (From €5.7M)
Slide 5: Results Highlights and Outlook
eDreams ODIGEO 1.2 RESULTS HIGHLIGHTS 1.4 OUTLOOK Performance in line with our guidance We expect FY20 to be a much better year than FY19, but it will still not reflect all our underlying potential as we have major markets with less than 12 months with the new revenue model. Bookings were 2.9 mill
Slide 6: Business Performance
eDreams ODIGEO 2. Business Performance 2.1 Business Review 2.2 Product 2.3 Geography 2.4 Financial KPIs 6
Slide 7: Business Review
eDreams ODIGEO Our revenue diversification initiatives are delivering results. Diversification revenues continue to 2.1 BUSINESS REVIEW grow, up 25% year-on-year, and are now 57% larger than Classic Customer Revenue. As an PRODUCT intended consequence of our revenue model shift, Product Diversificat
Slide 8: Product
eDreams ODIGEO 2.2 PRODUCT Diversification Revenue continues strong growth, now 57% larger than our Classic Customer Revenue Diversification +25% 1Q 1Q 1Q 72.2 FY15 FY19 FY20 CAGR Diversification 30.7 57.7 72.2 19% 57.7 Classic Customer 56.2 52.2 46.0 -4% CAGR Classic Supplier Advertising & Meta 15.
Slide 9: Geography
eDreams ODIGEO 2.3 GEOGRAPHY Revenue diversification drives growth in the Rest of the World markets, 24% CAGR over the past 5 years Rest of the World +25% 1Q 1Q 1Q 33.2 1Q 1Q FY15 FY19 FY20 CAGR 26.6 Top 6 95.8 108.0 108.3 2% CAGR +24% Rest of the world 11.5 26.6 33.2 24% Total 107.3 134.6 141.5 6%
Slide 10: Financial KPIs
eDreams ODIGEO 2.4 FINANCIAL KPIs Revenue diversification ratio (*) Customer repeat booking rate (annualised) (**) +8pp +3pp 46% 48% 47% 50% 38% 31% 1Q FY18 1Q FY19 1Q FY20 1Q FY18 1Q FY19 1Q FY20 Product diversification ratio (*) Acquisition cost per booking index +16pp 76% 100 -19 percentage point
Slide 11: 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 12: Summary Income Statement and Balance Sheet
eDreams ODIGEO 3.1 SUMARY INCOME STATEMENT Adjusted Net Income stood at €9.0 million, up 58%, we believe that Adjusted Net Income better reflects the real ongoing operational performance of the business and full disclosure of the Adjusted Net Income 1Q Var 1Q can be found in section 5 within the C
Slide 13: Summary Cash Flow and Efficient Debt Management
eDreams ODIGEO 3.3 SUMMARY CASH FLOW STATEMENT 3.4 EFFICIENT DEBT MANAGEMENT 1Q 1Q (in € million) FY20 FY19 Benefits from the refinancing coming through. Financial loss decreased by 31% compared to the same Adjusted EBITDA 28.1 26.1 period last year, a reduction of €3.3 million in financial expenses
Slide 14: Other information
eDreams ODIGEO 4.1 SHAREHOLDER INFORMATION The subscribed share capital of eDreams ODIGEO at June 2019 is €10,972 thousand divided into 109,719,052 shares with a par value of ten euros cents (€0.10) each, all of which are fully paid. As at 30th June 2019, the Group had 48,464 treasury shares under t
Slide 15: Condensed Consolidated Interim Financial Statements and Notes
5. Condensed Consolidated Interim Financial Statements and Notes for the three-months period ended 30th June 2019 eDreams ODIGEO
Slide 16: Condensed Consolidated Interim Income Statement
eDreams ODIGEO Condensed Consolidated Interim Income Statement Condensed Consolidated Interim Statement of Other (Thousands of euros) Comprehensive Income Notes Unaudited Unaudited 3 months 3 months (Thousands of euros) ended ended Unaudited Unaudited 30th June 2019 30th June 2018 3 months ended 3 m
Slide 17: Condensed Consolidated Interim Balance Sheet
eDreams ODIGEO Condensed Consolidated Interim Balance Sheet Statement (Thousands of euros) Notes Unaudited Audited Notes Unaudited Audited th st th st ASSETS 30 June 2019 31 March 2019 EQUITY AND LIABILITIES 30 June 2019 31 March 2019 Non-current assets Shareholders' equity Goodwill 12 719,992 720,6
Slide 18: Statement of Changes in Equity and Cash Flow
eDreams ODIGEO Condensed Consolidated Interim Statement of Condensed Consolidated Interim Cash Flow Changes in Equity Statement (Thousands of euros) (Thousands of euros) Foreign Notes Unaudited Unaudited Profit & Share Share Other Treasury currency Total 3 months 3 months Loss for the capital premiu
Slide 19: Notes to the Condensed Consolidated Interim Financial Statements
eDreams ODIGEO On 16th July 2019, the Group granted to certain employees 1,566,500 rights under the 2019 LTIP. The total Notes to the Condensed Consolidated Interim value of these rights is €3.3 million. Financial Statements 2.2 Operational Optimisation Plan On 28th May 2019, the Company announced a
Slide 20: Seasonality of Business and Earnings per Share
eDreams ODIGEO There is no accounting principle or policy which would have a significant effect and has not been applied in The Group’s Super Senior Revolving Credit Facility (“SSRCF”) is available to fund its working capital needs drawing up these financial statements. and Guarantees (see Note 18).
Slide 21: Segment Information
eDreams ODIGEO The calculation of basic earnings per share and fully diluted earnings per share (rounded to two digits), The following is an analysis of the Group’s Profit & loss and bookings by segment: based on Adjusted net income, for the three months periods ended 30th June 2019 and 2018, is as
Slide 22: Revenue Margin and Depreciation and Amortization
eDreams ODIGEO No single customer contributed 10% or more to the Group’s revenue. 8.2 Number of employees See definitions of Alternative Performance Measures in the “Glossary of definitions” annex. The average number of employees by category of the Group is as follows: 7. REVENUE MARGIN Unaudited 3
Slide 23: Other Operating Income/(Expenses) and Goodwill
eDreams ODIGEO In September 2018, the Group refinanced its debt repaying the 2021 Notes, and obtaining the new 2023 10. OTHER OPERATING INCOME/(EXPENSES) Notes. The 2023 Notes bear interest at 5.5% (3pp lower than the 2021 Notes), which explain the decrease in the interest expense on debt. Unaudited
Slide 24: Trade Receivables and Cash and Cash Equivalents
eDreams ODIGEO A detail of the goodwill movement by markets for the three months period ended 30th June 2018 is set out below: 14. TRADE RECEIVABLES Audited Unaudited Trade receivables from contracts with customers at 30th June 2019, and 31st March 2019: Net Goodwil at Exchange rate Net Goodwil at U
Slide 25: Share-based Compensation
eDreams ODIGEO 16.2 Share premium 17. SHARE-BASED COMPENSATION The share premium account may be used to provide for the payment of any shares, which the Company may repurchase from its shareholders, to offset any net realized losses, to make distributions to the On 12th September 2016, the Extraordi
Slide 26: Financial Liabilities and Provisions
eDreams ODIGEO Total Gross Debt Cover ratio = Gross Financial Debt / Last Twelve Month Adjusted EBITDA. 18. FINANCIAL LIABILITIES The Gross Debt Cover ratio is calculated quarterly and may not exceed 6. The Group debt and other Financial Liabilities at 30 June 2019 and 31 March 2019 are as follows:
Slide 27: Subsequent Events
eDreams ODIGEO insurance by insurers. This risk is relating to the possible view of local tax authorities that part of the 20.5 Tax contingencies remuneration received by the Group for the mediation of the travel insurance to its customers in certain countries should be considered basis for the levy
Slide 28: Consolidation Scope
eDreams ODIGEO 21.2 Change in composition of Board of Directors On 26th August 2019, the Board of Directors appointed Thomas Vollmoeller as new Chairman and Independent Director, effective 1st January 2020, subject to the shareholder’s approval of his nomination as Independent Director during the Co
Slide 29: Glossary
eDreams ODIGEO 6. GLOSSARY 29
Slide 30: Glossary of Definitions: Alternative Performance Measure
eDreams ODIGEO Gross Financial Debt means total financial liabilities considering financing cost capitalized plus accrued Glossary of definitions interests and overdraft. It includes both non-current and current financial liabilities. This measure offers to the reader a global view of the Financial
Slide 31: Other Defined Terms
eDreams ODIGEO costs" and "Bookings". Other Defined Terms Flight Business refers to our operations relating to the supply of flight mediation services. Advertising and Metasearch Revenue represents revenue from other ancillary sources, such as advertising on our websites and revenue from our metasea
Slide 32: Reconciliation
eDreams ODIGEO 7. RECONCILIATION 32
Slide 33: Reconciliation of APM & Other Defined Terms
eDreams ODIGEO Reconciliation of APM & Other Defined Terms Revenue Margin, Revenue Margin per booking, Flight business, Non-flight business, Diversification revenue (Thousands of euros, figures for the period ended on June 2019 and June 2018) Unaudited Unaudited EBIT, EBITDA, Adjusted EBITDA 3 month
Slide 34: Gross Financial Debt, Net Financial Debt, Adjusted Net Income
eDreams ODIGEO Gross Financial Debt, Net Financial Debt Adjusted Net Income Unaudited Audited Unaudited Unaudited th st 30 June 2019 31 March 2019 3 months ended 3 months ended 30th June 2019 30th June 2018 Non-current financial liabilities 422,755 423,274 Current financial liabilities 15,621 10,999