On The Beach Group Plc · LSE:OTB
On The Beach — FY2020 Earnings Presentation
24 slides from On The Beach's earnings presentation, Dec 10, 2020
Slide 1: Our vision is to become Europe's leading online retailer of beach holidays
Our vision is to become Europe’s leading online retailer of beach holidays FY20 RESULTS PRESENTATION 10 December 2020
Slide 2: Agenda and Cautionary Statement
AGENDA CAUTIONARY STATEMENT FY20 Trading post COVID-19 outbreak FY20 Financial Performance This presentation may contain certain forward-looking statements with respect to the financial condition, Shaun Morton - CFO results, operations and businesses of the Company. Forward looking statements are so
Slide 3: Shaun Morton, Chief Financial Officer
Shaun Morton Chief Financial Officer FY20 Trading post COVID-19 outbreak FY20 Financial Performance
Slide 4: Trading post COVID-19 outbreak
Trading post COVID-19 outbreak Monthly booked sales YOY Healthy demand for Significant uncertainty Some Quarantine Covid-19 has led to unprecedented challenges for the Summer 2020 around travel optimism restrictions restrictions suppresses travel in key travel sector Sales for winter 19/20 demand re
Slide 5: Refund and Cash Status
Refund and Cash Status OTB has refunded all customers in full, in cash and within 14 days wherever possible Refund Status at 30 November 2020 Total customer refunds made in cash since 15 March 2020 of £165m Customer refunds for Hotels and transfers £72m, and for flights £93m Monies received fr
Slide 6: Profit and Loss Account – Group
Profit and Loss Account – Group FY20 FY19 Change Revenue of £33.7m is down (76%) on prior year. Adding back the impact of £m £m % cancellations in the year adjusted revenue is £71.2m which is down (52%) vs prior year Statutory Revenue 33.7 140.4 (76%) Exceptional cancellations 37.5 7.1 An adjust
Slide 7: Profit and Loss Account – OTB Segment
Profit and Loss Account – OTB Segment FY20 FY19 Change Adjusted revenue of £50.4m, down (44%) YOY £m £m % Of the total Adjusted Revenue, £16.0m was earned in H2 and was Statutory Revenue 15.9 83.3 (81%) Exceptional cancellations 34.5 7.0 predominantly for departures in winter 20/21 and summer 20
Slide 8: Profit and Loss Account – International
Profit and Loss Account – International FY20 FY19 Change £m £m % YTD at January 2020, bookings were down (4%) YOY following uncertainty around the future of the Ving airline and a general softening of demand for Statutory Revenue 0.1 1.4 (93%) overseas travel in Sweden Exceptional cancellations 0.
Slide 9: Profit and Loss Account – Classic Collection Holidays (Classic)
Profit and Loss Account – Classic Collection Holidays (Classic) FY20 FY19 Change As a principal (rather than an agent) Classic accounts for revenue on a £m £m % "travelled" basis and reports revenue on a gross basis Revenue 16.9 55.0 (69%) Gross Profit 2.6 7.2 Revenue decreased (69%) to £16.9m a
Slide 10: Profit and Loss Account – Classic Package Holidays (CPH)
Profit and Loss Account – Classic Package Holidays (CPH) FY20 FY19 Change £m £m % CPH provides an online B2B platform that enables high street travel agents to sell dynamically packaged holidays to their customers Statutory Revenue 0.8 0.7 14% Exceptional cancellations 2.8 0.1 As an agent, CPH r
Slide 11: Balance sheet
Balance sheet FY20 FY19 £m £m Intangible assets Intangible assets 79.6 85.1 Net reduction in intangibles of £5.5m, being £4.0m capitalised software Tangible assets 10.5 11.1 development costs, offset by (£9.5m) brand amortisation Total Non Current Assets 90.1 96.2 As a result of COVID-19, we hav
Slide 12: Cash Flow
Cash Flow FY20 FY19 £m £m Total cash at 30 September 2020 was £36.5m (FY19: £54.8m). The main movements relate to: EBIT (45.9) 19.3 Adjustments for: Group loss before tax £46.3m Depreciation and amortisation 11.4 10.3 Share based payments (0.6) 0.7 Movements in working capital: EBITDA excludin
Slide 13: Presentation of GAAP and non-GAAP measures
Presentation of GAAP and non-GAAP measures FY20 FY19 Change FY20 Adjusted GAAP Adjusted GAAP Adjusted GAAP £m £m £m £m % % The COVID-19 adjustment to Gross Profit of £37.4m reflects the lost gross profit associated with cancelling and amending Group revenue 71.2 33.7 147.5 140.4 (52%) (76%) bookin
Slide 14: Simon Cooper, Chief Executive Officer
Simon Cooper Chief Executive Officer Evolution of Key Drivers
Slide 15: OTB Growth Strategy
To reach the widest possible audience of beach holidaymakers LONG SHORT OTB GROWTH STRATEGY DIFFERENTIATE SUPPLY HAUL HAUL INSPIRE HOLIDAYMAKERS PERSONALISE EXPERIENCES Our vision is to build Europe’s leading online beach holiday retailer via a single platform, multi brand strategy To support the in
Slide 16: Our core: Invest in talent and technology to extend core platform capabilities
Our core: Invest in talent and technology to extend core platform capabilities Extend generic platform capabilities to quickly take advantage of opportunities post COVID-19 Technology platform OTB has continued to invest in technology and talent throughout the pandemic ― Support automation of high v
Slide 17: Our core: Drive brand
Our core: Drive brand Maintain, repair and re-invigorate brand awareness and consideration COVID lockdown OTB has communicated proactively throughout the pandemic to: Brand and free traffic as a % of total traffic period ― Deliver prompt and efficient care throughout the crisis 95% TCG failure ― Pro
Slide 18: Our core: Differentiate supply
Our core: Differentiate supply Surely the X axis should say FY15 to FY20 not Sep 15 to Sep 20 Leverage multi-brand distribution capability to drive increasing exclusivity Our direct hotelier relationships have been fundamental to protect service Direct contracting – share of hotel sales 100% levels
Slide 19: Expansion opportunities: Long haul, B2B and International
Expansion opportunities: Long haul, B2B and International A huge opportunity exists to broaden our addressable audience post pandemic Long haul sales as % total sales Long haul: COVID-19 has impacted many specialist long haul operators 15% ― Bookings growth of 100% YOY for the last 24 months 13% 1
Slide 20: Current trading & outlook
Current trading & outlook Booking volumes in Q4 have remained subdued as consumer demand remains weak Government legislation made leisure travel from England illegal from 5 November to 1 December 2020 A number of factors are likely to continue to suppress demand such as regularly changing FCDO
Slide 21: Appendix
Appendix
Slide 22: Business Model
Business Model ADDRESSABLE MARKET STRUCTURAL MARKET Short haul beach Online OTB share of GROWTH & MARKET SHARE holidays dynamically X penetration X market traffic = Unique visitors GROWTH packaged X PERSONALISE CUSTOMER Revenue per Revenue per PROPOSITION & Conversion X Conversion = Unique visitor b
Slide 23: Disruptive retailer of beach package holidays
Disruptive retailer of beach package holidays On the Beach has the product advantages of a tour operator with the model advantages of an OTA Tour Operator OTA HIGH Cost Base LOW HIGH Risk LOW HIGH Margin LOW Product NARROW BROAD Range Specialist Generalist 23
Slide 24: Estimated Market Share: pre-COVID-19 Pandemic
Estimated Market Share: pre-COVID-19 Pandemic Opportunities exist to build share of our core and adjacent markets post TC collapse and COVID-19 impacts CORE MARKET: Short Haul Beach – Online (8m pax) EXPANSION: Short and Long Haul Beach – Offline (8m pax) TUI Jet 2 Thomas Cook On the Beach Love Holi