Edreams Odigeo · BME:EDR
Edreams Odigeo — Q1 2023 Earnings Presentation
26 slides from Edreams Odigeo's earnings presentation, Aug 31, 2022
Slide 1: Results Presentation 1Q FY 2023
RESULTS PRESENTATION 1Q FY 2023 31st August 2022 1
Slide 2: Disclaimer
DISCLAIMER This presentation is to be read as an introduction to the unaudited condensed consolidated interim financial statements of the Group and contains key information presented in a concise manner on the Group and its financial condition. The information contained in this presentation is extra
Slide 3: 1. Overview
1. Overview Outperforming the Market Strong 1Q FY23 Results Closing Remarks Appendix 3
Slide 4: eDO continues to perform strongly and gain market share
eDO CONTINUES TO PERFORM STRONGLY AND GAIN MARKET SHARE. WELL ON TRACK TO 1 MEET FY25 TARGETS eDO CONTINUES TO DELIVER STRONG BOOKINGS GROWTH ▪ In 1Q FY23 eDO achieved record in Bookings, the highest in the company's history, amounting to 4.4 million, 50% above pre-COVID-191. ▪ In July and August2,
Slide 5: 2. Outperforming the Market
Overview 2. Outperforming the Market Strong 1Q FY23 Results Closing Remarks Appendix 5
Slide 6: Strong bookings growth despite Omicron, Ukraine war and disruptions
eDO ACHIEVED STRONG BOOKINGS GROWTH DESPITE OMICRON, UKRAINE WAR, RECENT 2 AIR INDUSTRY DISRUPTIONS, AND INFLATIONARY PRESSURES eDO BOOKINGS GROWTH VS 2019 Ukraine Omicron Invasion 52% 54% 55% 44% 45% 38% 32% 31% 33% 34% 30% 6% 2% (2%) (26%) (11%) (51%) April '21 May '21 Jun '21 Jul '21 Aug '21 Sep
Slide 7: Superior value proposition leading to outperforming industry peers
eDO SUPERIOR VALUE PROPOSITION LEADING TO OUTPERFORMING THE INDUSTRY PEERS 2 TRADING EVOLUTION VS PRE-COVID-19, % eDO Q1 FY23 50% Omicron +71pp vs. IATA Europe +49pp vs. Low Cost 0% -50% -100% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 eDreams ODIGEO IATA Europe Low Cost
Slide 8: Prime improves business quality, adding 2 million members in 12 months
PRIME CONTINUES TO IMPROVE THE QUALITY OF THE BUSINESS AND GROWS STRONGLY, 2 ADDING 2 MILLION MEMBERS IN THE LAST 12 MONTHS EVOLUTION OF PRIME MEMBERS eDO is inventor and leader of subscription in travel with over 5 years of experience. 3.2M 3.5M IN 3x AUGUST (*) 2.7M In the 12 months to June 2022 o
Slide 9: Revenue diversification continues to grow
REVENUE DIVERSIFICATION CONTINUES TO GROW, ALREADY ABOVE PRE-COVID-19, AND 2 THE LARGEST CONTRIBUTOR TO REVENUES REVENUE DIVERSIFICATION RATIO (*) (**) REVENUE BREAKDOWN (*) (**) +20 pp 74% 74% 2% 14% 63% 19% 54% 10% 1Q FY23 Diversification Classic customer Classic supplier Advertising & Meta 1Q FY2
Slide 10: Business model and track record position us to perform better than industry
REGARDLESS OF ECONOMIC UNCERTAINTIES OUR BUSINESS MODEL AND TRACK RECORD 2 POSITIONS US TO PERFORM BETTER THAN THE INDUSTRY These are the reasons why we think we will outperform the market: THANKS TO PRIME WE CUSTOMERS WILL WE MEET THEIR NEEDS OFFER BEST PRICES FOCUS ON PRICE EVEN EVEN MORE THAN AND
Slide 11: 3. Strong 1Q FY23 Results
Overview Outperforming the Market 3. Strong 1Q FY23 Results Closing Remarks Appendix 11
Slide 12: Income Statement
INCOME STATEMENT 3 Highlights 1Q FY23 VAR. 1Q 1Q 1.Revenue Margin increased by 113%, to €145.7 million, due to the 98% (IN EUROS MILLION) FY23 FY23 FY22 increase in Bookings and 8% increase in Revenue Margin per Booking VS FY22 2.Variable costs increased by 128% due to both the increase in Bookings
Slide 13: Strong growth in Prime cash revenue margin and marginal profit
STRONG GROWTH IN PRIME CASH REVENUE MARGIN AND MARGINAL PROFIT IN THE LAST 3 12 MONTHS DUE TO STRONG GROWTH IN PRIME MEMBERS AND ARPU ARPU LTM (€) (*) Cash Revenue Margin LTM (€M) (*) Cash Marginal Profit LTM (€M) (*) 509 122 86.0 41% 65 210 53% 69.1 +141% +189% 299 51 58 34% 176 45% 23 61 116 28 1Q
Slide 14: Strong growth in Cash EBITDA, up 349% year-on-year
STRONG GROWTH IN CASH EBITDA, UP 349% YEAR-ON-YEAR, IN A MARKET STILL TO 3 RECOVER FULLY P&L with increase in Prime Deferred Revenue Highlights 1Q FY23 1. Success of Prime clear on our total Bookings and market share gains. Cash VAR. 1Q 1Q Revenue Margin (*) is already above pre-COVID-19 levels by 1
Slide 15: Cash Flow Statement
CASH FLOW STATEMENT 3 Highlights 1Q FY23 1Q 1Q (IN EUROS MILLION) 1.Net cash from operating activities decreased by €1.7 million, mainly FY23 FY22 reflecting: ADJUSTED EBITDA (*) 0.6 (1.9) • Working capital inflow of €28.9 million compared to €35.4 million in 1Q FY22. The inflow during 1Q FY23 is sm
Slide 16: 4. Closing remarks
Overview Outperforming the Market Strong 1Q FY23 Results 4. Closing remarks Appendix 16
Slide 17: In pole position in an attractive market
IN POLE POSITION IN AN ATTRACTIVE MARKET 4 Sizeable market and largest Attractive growth prospects eDO is positioned in the right e-commerce vertical after the pandemic segments (online and leisure) European Travel European Leisure Travel Market Market Size Online penetration €1.3Tn €Bn % over total
Slide 18: Within travel, eDO is the global flight leader, ex China
WITHIN TRAVEL, EDO IS THE GLOBAL FLIGHT LEADER, EX CHINA 4 #2 PLAYER IN FLIGHTS GLOBALLY #1 PLAYER IN FLIGHTS EUROPE GLOBAL FLIGHT REVENUE EUROPEAN FLIGHT REVENUE Estimated, CY 2021 (€M) Estimated, CY 2021 (€M) 223 917 #1 3.2x 276 #2 70 51 39 215 #3 eDreams etraveli Expedia lastminute.com Source: Co
Slide 19: eDO captures new customers through the Prime program
EDO HAS DEMONSTRATED THE ABILITY TO CAPTURE NEW CUSTOMERS THROUGH THE 4 PRIME PROGRAM, DESPITE COVID WAVES AND RECENT GEOPOLITICAL AND MACRO CONTEXT Prime is the #1 travel subscription programme in the world SHARE OF NEW CUSTOMERS WITHIN PRIME MEMBERS Delta Omicron 3.5 3.2 2.7 19% 60% 2.2 Prime 1.7
Slide 20: Well positioned, well financed, on track to meet FY25 targets
WELL POSITIONED, WELL FINANCED, ON TRACK TO MEETING SELF-IMPOSED FY25 4 TARGETS PRIME MEMBERS >7.25M PRIME ARPU(*) eDO FY25 TARGETS ~€80 CASH EBITDA(*) >E180M eDO large potential: superior returns for shareholders and customers while transforming and revolutionising the industry. (*) Definitions of
Slide 21: 5. Appendix
Overview Outperforming the Market Strong 1Q FY23 Results Closing Remarks 5. Appendix 21
Slide 22: Revenue diversification continues to grow
REVENUE DIVERSIFICATION CONTINUES TO GROW, ALREADY ABOVE PRE-COVID-19, AND 5 THE LARGEST CONTRIBUTOR TO REVENUES Revenue margin Diversification (IN EUROS MILLION) 1Q FY23 Var. FY23 vs FY22 1Q FY22 DIVERSIFICATION 110.7 122% 50.0 122% CLASSIC CUSTOMER 12.3 125% 5.5 110.7 CLASSIC SUPPLIER 19.8 72% 11.
Slide 23: Revenue by geography remains stable
REVENUE BY GEOGRAPHY REMAINS STABLE 5 Revenue margin TOP 6 (IN EUROS MILLION) 1Q FY23 Var. FY23 vs FY22 1Q FY22 105.8 105% TOP 6 105.8 105% 51.6 REST OF THE WORLD 39.8 137% 16.8 51.6 TOTAL 145.7 113% 68.4 1Q FY22 1Q FY23 12% Rest of the World 25% 27% 1Q 1Q 1Q FY15 FY22 FY23 137% 39.8 75% 73% 88% 16.
Slide 24: Glossary of Definitions
Glossary of Definitions Non-reconcilable to GAAP measures 1. Gross Bookings refers to the total amount paid by our customers for travel products and services booked through or with us (including the part that is passed on to, or transacted by, the travel supplier), including taxes, service fees and
Slide 25: Glossary of Definitions
Glossary of Definitions 12. Cash Revenue Margin means the IFRS revenue less cost of supplies, plus the variation of the Prime deferred revenue corresponding to the Prime fees that have been collected and that are pending to be accrued. The Prime fees pending to be accrued are non-refundable and will
Slide 26: Glossary of Definitions
Glossary of Definitions 23. Revenue Margin means the IFRS revenue less cost of supplies. The Group's management uses Revenue Margin to provide a measure of its revenue after reflecting the deduction of amounts payable to suppliers in connection with the revenue recognition criteria used for products