On The Beach Group Plc · LSE:OTB
On The Beach — FY2021 Earnings Presentation
19 slides from On The Beach's earnings presentation, Dec 9, 2021
Slide 1: FY21 Results Presentation
FY21 RESULTS PRESENTATION Our vision is to become Europe’s leading online retailer of beach holidays 9 December 2021
Slide 2: Agenda and Cautionary Statement
AGENDA CAUTIONARY STATEMENT FY21 Financial Performance This presentation may contain certain forward-looking Shaun Morton - CFO 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: FY21 Financial Performance
Shaun Morton Chief Financial Officer FY21 Trading FY21 Financial Performance
Slide 4: FY21 Trading and Market Dynamics
FY21 Trading and Market Dynamics FY21 trading was impacted by disruption caused by Covid-19 Monthly booked sales COVID-19 related disruption has been more significant and prolonged than most would have predicted January to May was impacted by an extended lockdown including a ban on Free Covid tr
Slide 5: Cash Status
Cash Status The Group had cash of £56m at 30 September 2021, customer prepayments held in Trust of £39m, and access to a £75m RCF Cash status at 30 September 2021 On 30 September 2021 Group cash balances were £56m (30 September 2020: £36.5m) The Group has continued to invest in: Launching and
Slide 6: Profit and Loss Account – Group
Profit and Loss Account – Group FY21 FY20 Change £m £m % Due to the ongoing COVID-19 pandemic leisure travel continued to be severely restricted throughout the year Statutory Revenue 21.2 33.7 (37%) Exceptional cancellations 9.3 37.5 As a result, FY21 revenue, net of cancellations was £21.2m (FY
Slide 7: Profit and Loss Account – OTB Segment
Profit and Loss Account – OTB Segment FY21 FY20 Change Adjusted revenue of £22.1m, down (56%) YOY £m £m % Offline marketing spend of £6.1m, relates largely to the Q2 brand campaign, Statutory Revenue 13.0 15.9 (18%) in addition to media spend supporting the launch of the ‘Free Covid Test’ Except
Slide 8: Profit and Loss Account – B2B segments
Profit and Loss Account – B2B segments FY21 FY20 Change £m £m % Classic Collection Holidays (Classic) Statutory Revenue 6.5 16.9 (62%) As a principal Classic accounts for revenue on a "travelled" basis and reports Exceptional cancellations - - revenue on a gross basis Adjusted Revenue 6.5 16.9 (62
Slide 9: Balance sheet
Balance sheet FY21 FY20 £m £m Seasonal cash flow requirements are covered by a revolving credit facility (RCF) which is drawn down as required Intangible assets 74.1 79.6 Tangible assets 8.3 10.5 At 30 September, Cash was £56m (FY20: £36.5m) Total Non Current Assets 82.4 90.1 Trade and other r
Slide 10: Cash Flow
Cash Flow FY21 FY20 Change £m £m % Cash is £56m (£19.5m higher than FY20) EBIT (35.8) (45.9) (22%) Adjustments for: Total cash balances including amounts held in trust of £95m (£32.7m higher Depreciation and amortisation 11.9 11.4 than FY20) Share based payments 2.8 (0.6) Gain on termination of
Slide 11: Presentation of GAAP and non-GAAP measures
Presentation of GAAP and non-GAAP measures FY21 (£m) FY20 (£m) Change FY21 Adjusted GAAP Adjusted GAAP Adjusted GAAP £m £m £m £m % % The COVID-19 adjustment to Gross Profit of £8.9m reflects the lost gross profit associated with cancelling Group revenue 30.5 21.2 71.2 33.7 (57%) (37%) and amending
Slide 12: Simon Cooper, CEO: Strategy
Simon Cooper Chief Executive Officer Strategy
Slide 13: OTB Growth Strategy
OTB Growth Strategy Post Covid, a huge opportunity exists to grow share of core and adjacent markets. United Kingdom (UK) To attract the widest possible audience of beach holidaymakers ©. Europe To support the integration and revenue expansion of beach focused brands Long Haul Growth Beach +4m pax —
Slide 14: Our core: Invest in talent and technology to extend core capabilities
Our core: Invest in talent and technology to extend core capabilities Evolving our platform will allow us to take advantage of opportunities post COVID Create conditions to support the attraction, development and retention of talent across the organisation Enable colleagues to work securely from
Slide 15: Our core: Drive brand
Our core: Drive brand Re-invigorate brand awareness and become a brilliant digital brand OTB Trust Pilot score 4.3 Reinvigorate: 4.2 4.1 ― Strategy to put customers at the heart of our decision making 4 3.9 ― Launched ‘We’re ready when you are’ H1 campaign in a period of low / no 3.8 travel 3.7 ―
Slide 16: Our core: Optimise supply
20 Our core: Optimise supply Leverage existing capabilities to further optimise supply Direct contracting – share of hotel sales 100% 90% Develop key partnerships: 80% ― Manage and maintain key relationships and seek new partnerships 70% 60% ― Direct bookings at c.90% 50% 40% ― 3rd party bed banks
Slide 17: Expansion opportunities: B2B, Long haul and International
Expansion opportunities: B2B, Long haul and International A huge opportunity exists to attract a wider audience of beach holidaymakers 0.0035 0.003 B2B: 0.0025 ― Both Classic brands are well positioned for a return in B2B demand CPH activated agents 0.002 ― The Classic brands have enhanced their r
Slide 18: Post Covid, an opportunity exists to champion customer-centric change
Post Covid, an opportunity exists to champion customer-centric change The market and its regulatory frameworks should protect the best interests of the consumers Strong liquidity ― OTB exits FY21 with significant cash, undrawn facilities and ring-fenced customer prepayments Business model ― The
Slide 19: Outlook
Outlook We expect the market will start to normalise during FY22, however the shape of recovery remains unknown FY22 expectations ― The shape of recovery will ultimately depend upon future UK and destination government policy ― We do believe however, a significant opportunity exists to grow share