OneSpaWorld Holdings Limited · NASDAQ:OSW
OneSpaWorld — Investor Presentation (August 2023)
23 slides from OneSpaWorld's investor presentation, August 2023
Slide 1: The Global Health and Wellness Company – Investor Presentation August 2023
– The Global Health and Wellness Company – INVESTOR PRESENTATION | August 2023
Slide 2: Disclosure & Forward-Looking Statements
Forward-Looking Statements This Investor Presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the “safe harbor” provisions of the Private Securities Litigatio
Slide 3: Disclosure, Continued
Use of Projections This Investor Presentation contains financial forecasts, including with respect to estimated Revenues, Net Income, Adjusted Net Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Unlevered After-Tax Free Cash Flow, Levered After-Tax Free Cash Flow and Unlevered After-Tax Fre
Slide 4: Examples of World Class Facilities at Sea and on Land
EXAMPLES OF WORLD CLASS FACILITIES AT SEA, ON LAND
Slide 5: Key Investment Highlights
• 90+% outsourced spa market share on cruise ships PREEMINENT LEADER • Nearly 20x larger than nearest maritime competitor • ~20M annual captive audience • 20+ consecutive years of global passenger growth1 KEY INVESTMENT FAVORABLE INDUSTRY • Strong population and demographic trends DYNAMICS HIGHLIGHT
Slide 6: OneSpaWorld Overview: Highlights
ONESPAWORLD OVERVIEW Exceptional Performance in Q2 2023 • We delivered an outstanding quarter, capping off a strong first half of the year, and have increased our annual guidance for the second time this year. ONESPAWORLD, • The quarter was highlighted by better-than-expected performance across key
Slide 7: Q2 2023 and FY23 Guidance
Q2 2023 AND FY23 GUIDANCE Q3 2023 ONESPAWORLD, THE PREEMINENT GLOBAL HEALTH & WELLNESS $205m-$210m $21m-$23m Revenue Adjusted EBITDA1 SERVICES COMPANY FY 2023 $770m-$790m $80m-$86m Revenue Adjusted EBITDA1 GROWTH OF 43% AT GROWTH OF 65% AT MID-POINT VERSUS FY 2022 MID-POINT VERSUS FY 2022 INCREASED
Slide 8: Long-Term Agreements with the Largest and Most Reputable Cruise Lines
We Operate on All Global Long-Term C-Level Relationships Routes and Ship Classes 1 Across our Entire Fleet 3 Cruise Line Other Asia Relationship Total Ships OSW Ships Banner O TH Australia AS ER IA A 29 Years 26 26 U ST LONG-TERM RL IA AGREEMENTS WITH Europe NORTH 29 Years 24 24 EUROPE North America
Slide 9: Cruise Industry Has Rebounded with Increasing Momentum
ON-BOARD PASSENGER BOOKINGS 1 ($B) SPEND / PCD 2 % % $90.0 .8 .3 33 19 2% $15.9 % 14 . .7% 5.9 $11.6 32 $13.9 $75.4 $11.9 $10.5 $10.1 $9.9 CRUISE INDUSTRY $10.5 HAS REBOUNDED WITH INCREASING MOMENTUM, AND 2023 IS EXPECTED TO ECLIPSE 2019 — Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 FY LTM Q2 2019 2023 AS OF Q2 2023: 2
Slide 10: Revenue Sharing Contracts Offer Compelling Value
Onboard Health & Wellness Products and Services ONESPAWORLD CRUISE LINES REVENUE SHARING CONTRACTS OFFER RESPONSIBILITY RESPONSIBILITY COMPELLING VALUE Recruit, train and manage Fund multi-million-dollar FOR worldwide onboard staff buildout ONESPAWORLD & Offer comprehensive and Dependably fill ships
Slide 11: OneSpaWorld Has the Only Platform with Processes and Infrastructure Necessary
End-to-End Logistics Capabilities BACK-END PLATFORM & FRONT-END PLATFORM & KNOW-HOW KNOW-HOW ONESPAWORLD HAS THE ONLY Global recruiting, training and Yield and revenue human logistics management PLATFORM WITH Exceptional pre- through PROCESSES AND Product supply chain facility post-cruise experience
Slide 12: Unmatched Service and Product Breadth
UNMATCHED SERVICE AND PRODUCT Broad Offering of Cruise Passengers an BREADTH ONBOARD Leading Brands Attractive Demographic * * SPA & BEAUTY COMPREHENSIVE SERVICES SERVICES $114,000 AND CURATED MEDI-SPA AVERAGE INCOME BRANDS SOLD TO FITNESS * AN ATTRACTIVE CAPTIVE AUDIENCE 49 84% HEALTH YEARS OLD MAR
Slide 13: Global Cruise Operations Are Highly Complex
Global Passenger Routes GLOBAL CRUISE OPERATIONS ARE HIGHLY COMPLEX In 2022, OneSpaWorld… VISITED EMBARKED ON REQUIRED 1,129 6,661 5,279 GLOBAL PORTS OF CALL VOYAGES STAFF TO FILL OPEN POSITIONS MADE PLACED SENT STAFF ON MORE THAN 1,115 5,378 7,825 MANAGEMENT VISITS TO SHIPS PURCHASE ORDERS TO FLIGH
Slide 14: More Than 20 Consecutive Years of Global Passenger Growth
GLOBAL CRUISE SHIP PASSENGERS (M) Recession Recession 29.7 28.5 MORE THAN 20 26.7 CONSECUTIVE 25.2 YEARS OF GLOBAL 23.1 22.3 PASSENGER .7 % R :6 20.5 20.9 21.3 GROWTH C AG 19 19.1 -20 19 95 17.2 17.8 The global cruise 16.6 15.9 industry has proven 14.8 resilient through 13.9 12.6 recessions with 11.
Slide 15: Uniquely Visible and Predictable Growth
Growth Strategy Built on the Following Key Drivers: UNIQUELY VISIBLE 1 Capture Highly Visible New Ship Growth with Current Cruise Line Partners 3 Focus on Enhancing Health and Wellness Center Productivity AND PREDICTABLE Cruise capacity growth is highly visible and Increase pre-booking and pre-payme
Slide 16: Global Trends to Drive Sector Growth
MULTIPLE MEGA ROBUST CAPACITY GROWTH IN CRUISING ACROSS TRENDS DRIVE GEOGRAPHIES POSITIVE OUTLOOK Global Cruise Capacity Growth: 2020 – 2027 GLOBAL TRENDS TO AGING GLOBAL DRIVE SECTOR POPULATIONS GROWTH 38.7M + CA GR :4 .0% PERSISTENT HEALTH & Multiple long-term 29.5M WELLNESS TRENDS mega trends und
Slide 17: Introduction of High-Value Services Drives Revenue Growth
Introduction of High-Value Services Drives Revenue Growth Across Existing Footprint SERVICE & PRODUCT OneSpaWorld Medi-Spa Rollout: Vessel Count by INNOVATION Year ACUPUNCTURE 1ST VESSEL EXCLUSIVE & HIGHLY 2005 AGR: 2 3 % 99 – 2 01 9 C 94 ATTRACTIVE 2 008 86 86 75 66 GLOBAL FLEET ROLLOUT 55 62 47
Slide 18: Cruise Lines Increasingly Aligned with Us to Drive Onboard Revenue
Onboard Spend as a % of Cruise Operator Revenue 1 Historical Collaboration SIDE ENGAGEMENT ISOLATED SHORE- Health & Wellness Center Branding & Design 34.4% s bp CRUISE LINES ARE 6 0 +8 INCREASINGLY Signage & Limited Marketing ALIGNED WITH US TO DRIVE 25.8% ONBOARD New Areas of Collaboration REVENUE
Slide 19: Strong, Visible and Consistent Revenue & Adjusted EBITDA Growth
Historical Revenue Historical PF Adj. EBITDA 2 ($M, FYE Dec.) ($M, FYE Dec.) +43% $7801 GR : 5.5% 19 C A 201 5-20 $541 $562 .0% $546 GR: 7 1 +65% $83 STRONG, $507 9 CA $453 $476 -201 2015 $59 VISIBLE AND $49 $53 $56 $50 Pandemic $45 CONSISTENT REVENUE & $121 $144 ADJUSTED EBITDA GROWTH WITH 2015 201
Slide 20: Asset Light Business Model & Superior After-Tax Free Cash Flow
Exceptional After Tax Free Cash Flow Conversion MINIMAL NEW HEALTH & WELLNESS CENTER CAPEX Cruise lines fund nearly all maritime health and wellness center buildout costs ASSET LIGHT MODEL ASSET LIGHT OneSpaWorld does not own any of its maritime health and wellness centers – all major maintenance re
Slide 21: Sustainability and Social Responsibility
PLANET PEOPLE INTEGRITY Sustainability and Social Responsibility For over half a century, we have been innovators in the spa and wellness industry; bringing our premier services to passengers around the world on cruise ships and in resort spas. Our commitment to the environment is unwavering. We con
Slide 22: OneSpaWorld, the Preeminent Global Health and Wellness Services Company
ONESPAWORLD, THE PREEMINENT GLOBAL HEALTH AND WELLNESS SERVICES COMPANY UNDISPUTED LEADER IN A HIGHLY ATTRACTIVE INDUSTRY GLOBAL MEGA TRENDS DRIVING ROBUST SECTOR GROWTH COMPLEX BUSINESS MODEL NOT EASILY REPLICATED HIGHLY VISIBLE, UNIQUELY PREDICTABLE GROWTH ENHANCED CAPABILITIES ADD TO SALES PRODUC
Slide 23: Thank You
T H A N K YOU P R I V I L E G E D , P R O P R I E T A R Y A N D C O N F I D E N T I A L 25
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